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Affirm is a fintech company that provides loans to people who want to buy now and pay later.
Affirm provided this image.
The stock of Affirm Holdings dropped by double digits on Tuesday following news that the company has filed for bankruptcy.
Apple
In the consumer loan category known as “buy now, pay later,” intends to compete with Affirm. In normal trading, Affirm (ticker: AFRM) sank 10.5 percent to $58.21, but in after-hours trading, it rose 1.2 percent to $58.90.
According to Bloomberg, Apple is working on a new service that will allow customers to pay for any Apple Pay purchase over time in installments. Apple Pay Later would be the name of the service, and it would work with Apple Pay.
Goldman Sachs is a financial services firm.
as the lending institution for the offering’s loans According to Bloomberg, the service would provide Apple Pay users the option of paying in four interest-free instalments every two weeks, or paying over several months with interest—a structure similar to what Affirm offers. According to the report, Apple would allow payments to be made with any linked credit card. Goldman Sachs (GS) and Affirm both declined to comment. Apple (AAPL) could not be reached for comment right away. Truist Securities analyst Andrew Jeffrey wrote in a research note on Tuesday that the selloff in Affirm stock appears to be an overreaction. He recommended investors to buy on the cheap, noting that the buy now, pay later market is competitive and has minimal entry barriers. “Our view is that Affirm has superior merchant integrations and the capacity to execute complex underwriting,” Jeffrey says, noting that competitors in the sector lack these capabilities. He also stated that the company’s recent integration with Shopify could result in “substantial” sales increase in both the fiscal years ending in June 2021 and fiscal year ending in June 2022. Eric J. Savitz can be reached at eric.savitz@barrons.com./n
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