Payment network Affirm (AFRM) is teaming up with e-commerce giant Amazon (AMZN) to offer shoppers a new payment option. As part of the new strategic partnership, the two have started testing a friendly payment solution at checkout for selected customers. AFRM shares fell 2.97% to close at $67.90 on August 27.
The flexible payment solution will allow Amazon customers to split purchases of $50 or more into simple monthly payments.
Customers using the payment option will be shown the total cost and will not pay more than they agree at checkout. Additionally, no late or hidden fees will be levied as part of the new payment option.
Senior Vice President of Sales at Affirm, Eric Morse, expects the new partnership with Amazon to enhance transparency, predictability, and affordability. (See Affirm stock charts on TipRanks)
Morse stated, “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”
Recently, Bank of America analyst Jason Kupferberg reiterated a Buy rating on Affirm and raised the price target to $82 from $71, implying 20.77% upside potential to current levels. The analyst remains confident about Affirm’s upside potential on key metrics. Kupferberg expects the upside to be fuelled by the non-peloton business.
Consensus among analysts is a Moderate Buy based on 4 Buys, 2 Holds, and 1 Sell. The average Affirm price target of $76.43 implies 12.56% upside potential to current levels.
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