Stride Bank partners with Affirm for payment program

TULSA, Okla. - Stride Bank, N.A., a community banking and payment solutions provider, has entered into a partnership with financial technology company Affirm Holdings, Inc. (NASDAQ: AFRM) to issue the Affirm Card, a product designed to give consumers the option to pay upfront or over time for purchases made through the Affirm app. According to InvestingPro data, Affirm has shown impressive revenue growth of 46% over the last twelve months, with a current market capitalization of $14.47 billion.

The collaboration, announced today, positions Stride Bank as a card issuing partner, expanding its payments program and aligning with its goal to offer innovative financial solutions. The partnership is expected to support the increasing consumer demand for flexible payment options provided by Affirm. InvestingPro analysis indicates that while Affirm maintains strong liquidity with a current ratio of 12.29, the company faces profitability challenges, as reflected in its Financial Health Score of "FAIR."

Affirm’s SVP of Product, Vishal Kapoor, expressed enthusiasm about the partnership, highlighting that the Affirm Card is accepted virtually everywhere Visa is accepted, and the addition of Stride Bank as a card issuing partner will facilitate the expansion of the card’s reach.

The Affirm Card, boasting 1.7 million active cardholders as of December 31, 2024, combines the convenience of a debit card with the option to convert eligible purchases into installment loans via the Affirm app. The card is part of Affirm’s network, which includes 21 million active consumers and over 330,000 merchants. For investors seeking deeper insights into Affirm’s growth potential and risks, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 1,400+ other top US stocks.

Stride Bank, established in 1913, is recognized for its century-long commitment to community banking and for issuing cards for some of the nation’s most significant programs. Affirm aims to provide transparent financial products without hidden fees, late fees, or compounding interest, differentiating itself from traditional credit card offerings.

The partnership is based on a shared vision of providing accessible financial solutions and enhancing consumer financial empowerment. The Affirm Card allows for transparent payment options, with no hidden fees and fixed interest that does not compound into the principal.

The information for this article is based on a press release statement.

In other recent news, Affirm Holdings Inc. has announced that it will expand its credit reporting to Experian, aiming to enhance transparency in lending and assist consumers in building their credit histories. Starting April 1, 2025, Affirm will report all transactions, including its Pay in 4 product, to Experian. This initiative is expected to help consumers and lenders make better-informed financial decisions. Additionally, Affirm has recently expanded its partnership with J.P. Morgan Payments, allowing U.S. merchants on J.P. Morgan’s Commerce Platform to offer Affirm’s payment options at checkout, further integrating its services into the market.

In terms of analyst activity, Citizens JMP reiterated a Market Outperform rating for Affirm, with a price target of $85, citing the company’s potential to scale its operations significantly. Goldman Sachs also maintained a Buy rating with a $56 price target, highlighting Affirm’s strategic partnerships and the growing popularity of buy now, pay later options. William Blair reaffirmed an Outperform rating, expressing confidence in Affirm’s leadership position in the buy-now-pay-later industry, despite potential volatility and competition. Meanwhile, BMO Capital resumed coverage with an Outperform rating and a $69 price target, noting Affirm’s potential recovery path and growth prospects despite market challenges. These developments reflect a broad range of positive analyst sentiment and strategic moves by Affirm to strengthen its market position.

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