Affirm (AFRM) stock jumped 12% on Tuesday after CFO Rob O’Hare said during a virtual fireside chat that the company has extended its partnership with Amazon (AMZN) through January 2031. The move helped boost investor confidence in the buy now, pay later (BNPL) provider.
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The renewed agreement keeps Affirm as a key BNPL option across Amazon’s U.S. marketplace, allowing shoppers to split purchases into monthly payments at checkout.
The partnership has been a major growth driver for Affirm since it first launched in 2021, giving the fintech company access to millions of high-intent consumers and a steady stream of transaction volume.
During the chat, O’Hare also said the business is performing as expected, and the Affirm card continues to do well. He added that the company aims to reach about $7,500 in spend per active cardholder and grow to 10 million cardholders, noting that Affirm is roughly one-third of the way toward both goals.
Affirm to Benefit from Growing BNPL Demand
The extension comes at a time when BNPL adoption continues to expand across e-commerce. This is because consumers are increasingly turning to installment plans amid high interest rates and tighter household budgets.
Affirm has leaned into these trends with a strong focus on transparent pricing, no late fees, and tighter underwriting to manage risk in a cautious spending environment.
While the company still faces competition from rivals like PayPal (PYPL), Klarna (KLAR), and Afterpay, maintaining a long-term presence on Amazon gives Affirm a strategic advantage.
Is Affirm a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on AFRM stock based on 16 Buys and five Holds assigned in the past three months. Further, the average Affirm price target of $96.94 per share implies 32.09% upside potential.
