Before Holiday Shopping Confirm Stock Prices Will Soar in Target Transactions
We see a 15% increase in inventory on Wednesday after targets in the retail chain began offering customers online installment loan services for purchases over $ 100.
Target said in a blog post that consumers are gearing up for the holiday shopping season and are teaming up with Affirm and its little rival Sezdle.
âWe know customers want easy, affordable payment options that stay within their family’s budget,â said Gemma Kubat, President of Retail and Financial Services at Target, in an article.
Buy Now and Pay Later (BNPL) services are often interest-free installment loans, as retailers respond to consumer demands for an easy way to pay without debt. Yes, the popularity is skyrocketing. BNPL providers typically add a payment button to the retailer’s website to get a discount from the seller on a transaction-to-transaction basis.
RBC Capital Markets estimates that the BNPL option will increase retail conversion rates from 20% to 30% and increase the average note size from 30% to 50%.
Affirm went public in January for $ 49 per share, after which the share price on Wednesday rose more than 150% to $ 127.80. The company’s market capitalization has reached approximately $ 35 billion.
The Affirm spokesperson confirmed the target transaction and emailed CNBC in a recent survey conducted by the company that found 69% of Americans “interested in using payment time solutions during the holiday season”. There are. “
Affirmer’s most significant announcement came in late August, when Amazon announced that it was processing purchases of $ 50 and over on its site. Affirm’s stake jumped 47% as the company became Amazon’s top third-party installment loan provider.
In early August, Affirm partnered with Apple to fund iPhones, iPads and Macs.
The BNPL market takes off well beyond Affirm. In August, Square agreed to buy Australian Afterpay for $ 29 billion. This is the biggest tech transaction of the year. And in June, Swedish fintech company Klarna raised $ 46 billion in funding after partnering with Macy’s in late 2020.
Target states in their post that clients can apply to Affirm to get started. Then, after filling out the cart on Target’s website, buyers can choose to pay with Affirm and decide on a monthly refund.
âAffirm doesn’t charge late fees or hidden fees, so we won’t pay more than we agreed to at checkout,â Target said.
see: CEO says FinTech still has a long way to go