Affirm Holdings (NASDAQ:AFRM) stock gained on Tuesday after it announced that it had expanded its collaboration with Alphabet (NASDAQ:GOOGL) Google Pay by making its flexible, transparent payment options available through autofill on Chrome. Google’s stock price also gained.
The move builds on Affirm’s early 2024 launch of Google Pay, which enabled eligible consumers to pay over time at merchants that accept Google Pay.
Also Read: Affirm And Shopify Expand’ Buy Now, Pay Later’ To Canada And UK In Global Growth Push
Now, U.S. shoppers using Chrome’s desktop autofill can choose “Pay over time options” after a quick credit check. Interesteck offers biweekly or monthly installment plans ranging from $35 to $30,000, with interest rates starting at 0% APR and no late or hidden fees.
The integration requires no additional work from merchants and automatically activates on select websites, further broadening Affirm’s reach and streamlining the consumer checkout process.
Affirm stock gained 20% year-to-date. On CNBC’s “Mad Money Lightning Round,” Jim Cramer recommended Affirm as a buy, predicting it could rise from $72 to $100.
However, in July, JPMorgan Chase (NYSE:JPM) shared plans to start charging significant fees for access to customer bank account data, a move that could pressure Affirm and other fintech firms. The bank sent pricing sheets to major data aggregators like Plaid and MX, which connect banks to fintech platforms for services such as payments, lending, and digital wallets. The steepest fees will target payment-focused companies, potentially raising costs for buy-now-pay-later providers like Affirm.
While Affirm’s stock has posted modest gains on expectations, it may be less exposed than peers like PayPal Holdings (NASDAQ:PYPL). Its reliance on bank data for underwriting and repayment means higher aggregator costs could still squeeze margins and force adjustments to its business model.
Price Action: As of the last check on Tuesday, AFRM stock was up 5.86% to $77.34. GOOGL was up 1.07%.
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