Affirm Expands to Self-Checkout at Walmart Stores

Rhea-AI Summary

Affirm (NASDAQ: AFRM) expands its services with Walmart, allowing eligible consumers to pay over time at over 4,500 Walmart stores in the U.S. The partnership brings Affirm’s transparent and flexible pay-over-time options to self-checkout kiosks, enabling shoppers to pay for electronics, apparel, toys, and more in simple monthly payments. Affirm's research shows that over half of Americans are looking for buy now, pay later options, and 76% of consumers would delay or not make a purchase without Affirm. The expansion aims to increase purchasing power during the holiday shopping season and beyond.

Insights

Financial Analyst

The expansion of Affirm's pay-over-time services to Walmart's self-checkout kiosks represents a strategic move that could potentially increase transaction volumes and customer base for both companies. This collaboration allows consumers to spread the cost of purchases, aligning with the growing trend of flexible payment solutions. The provided statistic that 54% of Americans seek such options at checkout highlights the demand for this service.

From a financial perspective, this partnership could lead to revenue growth for Affirm as more consumers utilize their financing. Additionally, Walmart could see an uptick in sales due to increased affordability for consumers. However, the reliance on consumer credit worthiness and economic conditions could pose risks, as higher default rates could impact Affirm's profitability.

Long-term implications include potential shifts in consumer spending habits and increased market competition as pay-over-time options become more prevalent. Monitoring customer adoption rates and payment performance will be crucial for stakeholders to assess the sustainability and profitability of this venture.

Consumer Behavior Expert

The integration of Affirm's financing options into Walmart's in-store experience could influence consumer behavior, encouraging larger basket sizes and possibly changing the perception of credit use in retail. The assertion that 76% of consumers would delay or not make a purchase without such options indicates a significant reliance on alternative financing.

While this might boost sales in the short term, especially during the holiday season, it is important to consider the potential for increased consumer indebtedness and the ethical considerations of promoting credit for retail consumption. The impact on consumer financial health and spending patterns will be an area of focus for analysts and consumer advocates alike.

Retail Industry Analyst

The partnership between Affirm and Walmart is indicative of the broader retail industry's shift towards accommodating consumer preferences for flexible payment methods. By integrating pay-over-time options at self-checkout kiosks, Walmart is enhancing its competitive edge, potentially attracting price-sensitive customers and those who prefer not to use traditional credit cards.

Competitors may feel pressured to offer similar payment alternatives to keep pace with consumer expectations. The success of this initiative could serve as a benchmark for the retail sector, influencing future payment strategies and partnerships.

This holiday shopping season, eligible consumers can pay over time with Affirm at over 4,500 Walmart stores in the U.S.

SAN FRANCISCO--(BUSINESS WIRE)-- Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced it has expanded its services with Walmart to bring Affirm’s transparent and flexible pay-over-time options to self-checkout kiosks at over 4,500 Walmart stores in the United States. Now, eligible shoppers can easily pay over time for their favorite electronics, apparel, toys, and more in simple monthly payments when checking themselves out in-store.

“Recent Affirm research revealed that more than half of Americans (54%) are looking for retailers to offer a buy now, pay later option at checkout. Moreover, we’ve found that 76% of consumers would either delay or not make a purchase without Affirm,” said Pat Suh, Affirm’s SVP of Revenue. “Expanding our partnership with Walmart and bringing Affirm’s transparent monthly pay-over-time options to their self-checkout kiosks in the U.S. will help even more consumers increase their purchasing power during the holiday shopping season and beyond.”

In addition to being available in Walmart stores nationwide, on walmart.com, and in the Walmart app, U.S. consumers can also pay over time with Affirm at Walmart Vision and Auto Centers. As is always true with Affirm, customers are shown the total cost of their purchase and will never pay more than they agree to upfront. Affirm never charges any late or hidden fees.

About Affirm

Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network — one based on trust, transparency and putting people first — we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we show consumers exactly what they will pay up front, never increase that amount, and never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | Twitter.

Payment options through Affirm are subject to eligibility, and are provided by these lending partners: affirm.com/lenders. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to California Finance Lender license 60DBO-111681.

AFRM-F

View source version on businesswire.com: https://www.businesswire.com/news/home/20231219776531/en/

Press Contacts

Affirm

Alex Rafter

press@affirm.com

(650)398-2715

Source: Affirm

FAQ

What is the latest partnership announced by Affirm (NASDAQ: AFRM)?

Affirm has expanded its services with Walmart, allowing eligible consumers to pay over time at over 4,500 Walmart stores in the U.S.

What options does the partnership with Walmart offer to consumers?

The partnership brings Affirm’s transparent and flexible pay-over-time options to self-checkout kiosks, enabling shoppers to pay for electronics, apparel, toys, and more in simple monthly payments.

What percentage of Americans are looking for buy now, pay later options according to Affirm's research?

Affirm's research revealed that more than half of Americans (54%) are looking for retailers to offer a buy now, pay later option at checkout.

How does the expansion of the partnership with Walmart benefit consumers?

The expansion aims to increase purchasing power during the holiday shopping season and beyond, as 76% of consumers would either delay or not make a purchase without Affirm.