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Investing.com -- Shares of Affirm (NASDAQ: AFRM) climbed 2.5% following the announcement of an expanded global partnership with Shopify (NYSE:SHOP), which will extend Affirm’s role as the exclusive provider of Shop Pay Installments in the United States and Canada, with plans to enter the UK market.
The payment network company, Affirm, and the commerce infrastructure provider, Shopify, have reinforced their multi-year alliance, solidifying Affirm’s position as the sole pay-over-time option for Shop Pay Installments in the U.S. This exclusivity will now also cover Canada, Shopify’s home territory, and the partnership is set to grow into new international markets, beginning with the UK.
This strategic move is expected to benefit both Affirm and the merchants within the Shopify ecosystem. Kaz Nejatian, COO of Shopify, expressed confidence in the partnership, citing Affirm’s "premier technology, world-class team, and commitment to transparency" as key reasons for expanding the alliance internationally.
In the coming months, Shopify merchants in Canada will have the opportunity to integrate Shop Pay Installments into their checkout process, offering customers customizable payment plans with competitive terms. This initiative aims to replicate the success seen in the U.S., where since its 2021 launch, Shop Pay Installments has seen widespread adoption, with millions of consumers utilizing the payment option.
Max Levchin, Founder and CEO of Affirm, highlighted the five-year history of collaboration between the companies, emphasizing the consumer demand and merchant growth potential that Shop Pay Installments have cultivated. With the international expansion on the horizon, Affirm is poised to capitalize on the increasing global demand for flexible payment solutions.
The stock’s positive movement reflects investor optimism about Affirm’s growth prospects and its strengthening relationship with Shopify, which is anticipated to drive further adoption and usage of its payment services on a global scale.
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