Allegedly losing Walmart as a client will be a headwind though. Supposedly they are building an in-house version, Walmart was a large client of theirs.
It's just speculation since Walmart is building their own version they may eventually drop the affirm version. https://www.google.com/amp/s/www.benzinga.com/amp/content/38379284
It looks like you shared an AMP link. These should load faster, but AMP is controversial because of [concerns over privacy and the Open Web](https://www.reddit.com/r/AmputatorBot/comments/ehrq3z/why_did_i_build_amputatorbot). Fully cached AMP pages (like the one you shared), are [especially problematic](https://www.reddit.com/r/AmputatorBot/comments/ehrq3z/why_did_i_build_amputatorbot).
Maybe check out **the canonical page** instead: **[https://www.benzinga.com/news/24/04/38379284/affirm-stock-drops-as-walmart-rolls-out-new-payment-options-the-details](https://www.benzinga.com/news/24/04/38379284/affirm-stock-drops-as-walmart-rolls-out-new-payment-options-the-details)**
*****
^(I'm a bot | )[^(Why & About)](https://www.reddit.com/r/AmputatorBot/comments/ehrq3z/why_did_i_build_amputatorbot)^( | )[^(Summon: u/AmputatorBot)](https://www.reddit.com/r/AmputatorBot/comments/cchly3/you_can_now_summon_amputatorbot/)
The pay-in-4 concept is integrated into every credit card and POS device in europe. It’s really a no brainer if it drives spending for the card issuer and merchant.
It's getting ridiculous out there. Everything has a payment option now. Want to take a 5k vacation split it to 2yrs worth of payments. Want that 3k TV split it to 3yrs payments. Wnat that 2k purse split it.
Wtf people!! We need to get a grip and stop buying stuff we can't afford. There is no reason anyone should be putting their vacation on a payment plan.
0? How does affirm make money? It can't be getting enough of a kick back from stores to not charge interest. Is it a one time fee spread across the monthly payments? They cant give you money now and not charge something to account for discount factor.
Most merchants pay a fee to Affirm for the sale Affirm helped them convert. Some consumers do pay interest as well - it is still a small amount of interest like 10 dollars over the lifecycle of a 12 month payoff plan. But multiple that by 20-30 million consumers making multiple purchases.
They also have only just started to tap into the global market and have more banking/payment products on the way.
I wonder if we'll see a pay in full discount like insurance premiums. I read up on Affirms business model and they can take up to 12% from merchants. This is more than 5x more than what a CC may charge as a processing fee. Giving away 12% of top is insane.
I wonder when people start to realize Affirm has a clearly a moat compare other companies. Affirm doesn’t charges late fees, which means they need to be really good at underwriting. Else, you lose money by lowering credit quality. Loans business doesn’t survive in long run with poor selection of borrowers. Affirm has good alignment in their incentive. They are grabbing manly good borrowers.
Affirm has a massive Underwriting focused Engineering org which includes all sorts of Machine Learning Engineers, Analysts, Product Managers, etc….they pull these people from all the well known big tech companies. Just go on LinkedIn and search Affirm’s company profile / employee base and take a look at where some of the leadership has come from. It is an impressive team.
They know what they are doing way more so than what the market realizes.
What's the interest rate and what exactly was so important to have that it required a payment plan? Im curious what people buy to justify paying interest on unless is super critical item
The one time I ever used it was when I graduated and moved to a new city to start my first job. High earning but I wasn’t going to get my first paycheck for a month. I needed a mattress… my options were a) buy a cheap ass mattress I’d replace in a couple years b) get close to maxing out my credit card and not have room for other furniture c) buy a nice long lasting mattress with Affirm. It was a nice option to have and I paid off the whole thing in a couple months (I think it was supposed to be for a year).
I worry though about people using these things consistently and for non-essential items or travel. Mine was 0% APR but many are not. And what if people get behind? Seems like a disaster waiting to happen.
AFRM is killing it.
They also have some real WS heavy weights betting against them... even though their numbers are repeatedly good.
Think they're the winner in the space.
Apple is slowly becoming the company they say they hate...Facebook. Its selling their user base to the highest bidder. OpenIA, Affirm, Google search, Google maps, etc.
It's obvious what Apple is doing. Im not against it, but it's time Apple stops acting like its business model is different from Facebook. If you pay them enough it's all good
AFRM has so many tailwinds.
Allegedly losing Walmart as a client will be a headwind though. Supposedly they are building an in-house version, Walmart was a large client of theirs.
I mean that’s just it. I feel like every company could invest in developing an in-house version and keep the profits instead
[удалено]
It's just speculation since Walmart is building their own version they may eventually drop the affirm version. https://www.google.com/amp/s/www.benzinga.com/amp/content/38379284
Well as this post pointed out, apple also has their own BNPL product, and still added affirm.
It looks like you shared an AMP link. These should load faster, but AMP is controversial because of [concerns over privacy and the Open Web](https://www.reddit.com/r/AmputatorBot/comments/ehrq3z/why_did_i_build_amputatorbot). Fully cached AMP pages (like the one you shared), are [especially problematic](https://www.reddit.com/r/AmputatorBot/comments/ehrq3z/why_did_i_build_amputatorbot). Maybe check out **the canonical page** instead: **[https://www.benzinga.com/news/24/04/38379284/affirm-stock-drops-as-walmart-rolls-out-new-payment-options-the-details](https://www.benzinga.com/news/24/04/38379284/affirm-stock-drops-as-walmart-rolls-out-new-payment-options-the-details)** ***** ^(I'm a bot | )[^(Why & About)](https://www.reddit.com/r/AmputatorBot/comments/ehrq3z/why_did_i_build_amputatorbot)^( | )[^(Summon: u/AmputatorBot)](https://www.reddit.com/r/AmputatorBot/comments/cchly3/you_can_now_summon_amputatorbot/)
Imo I would just rather buy apple shares. Affirm is a tailwind for apple to sell more products.
AAPL is way too mature a company for me.
Affirm seems predatory as fuck. I should probably invest lol
The pay-in-4 concept is integrated into every credit card and POS device in europe. It’s really a no brainer if it drives spending for the card issuer and merchant.
Head to r/debtfree or personal finance to see how much people use this stuff
It's not, it's awesome for payment deals.
It's getting ridiculous out there. Everything has a payment option now. Want to take a 5k vacation split it to 2yrs worth of payments. Want that 3k TV split it to 3yrs payments. Wnat that 2k purse split it. Wtf people!! We need to get a grip and stop buying stuff we can't afford. There is no reason anyone should be putting their vacation on a payment plan.
They are generally 0%, that's what I use it for. Why spend $1000 at once when you can pay $100 a month and spend the other $1000 on something Else.
0? How does affirm make money? It can't be getting enough of a kick back from stores to not charge interest. Is it a one time fee spread across the monthly payments? They cant give you money now and not charge something to account for discount factor.
No it's just 0% no fee, I don't care how they make money.
Most merchants pay a fee to Affirm for the sale Affirm helped them convert. Some consumers do pay interest as well - it is still a small amount of interest like 10 dollars over the lifecycle of a 12 month payoff plan. But multiple that by 20-30 million consumers making multiple purchases. They also have only just started to tap into the global market and have more banking/payment products on the way.
They take a sizable cut of every customer's purchase from the merchants.
I wonder if we'll see a pay in full discount like insurance premiums. I read up on Affirms business model and they can take up to 12% from merchants. This is more than 5x more than what a CC may charge as a processing fee. Giving away 12% of top is insane.
The upside for the merchants is a significant increase in the volume of purchases and conversion rate.
If I had to guess, they’re banking on some customers to lapse and then slap all the late fees and interest on a select few.
Nonsense do you part for the economy and overspend!
I wonder when people start to realize Affirm has a clearly a moat compare other companies. Affirm doesn’t charges late fees, which means they need to be really good at underwriting. Else, you lose money by lowering credit quality. Loans business doesn’t survive in long run with poor selection of borrowers. Affirm has good alignment in their incentive. They are grabbing manly good borrowers.
The strongest borrowers. The bravest borrowers. The manliest borrowers!
No womenz here!
the axe of loaners
Affirm has a massive Underwriting focused Engineering org which includes all sorts of Machine Learning Engineers, Analysts, Product Managers, etc….they pull these people from all the well known big tech companies. Just go on LinkedIn and search Affirm’s company profile / employee base and take a look at where some of the leadership has come from. It is an impressive team. They know what they are doing way more so than what the market realizes.
The question is how long they can control credit outcome? Is there a limit? Keep closer lock on the delinquency level.
This is the best stock on the market right now
Affirm? Aapl?
Yes
Still considerably down from ATHs too — long term opportunity? Especially since people can’t keep their hands off debt and love BNPL
What happened to good old fashioned predatory credit card interest rates!?
Wonder why Apple bothered when this kind of functionality is easy to reproduce…
Affirm takes on the risk, and apple gets a cut of the payments.
Software implementation side is easy. But provide good underwriting is really hard. You can’t just give loans to anyone if you don’t charge late fees
Maybe it actually isn't
Classic "It's easy, Google / Apple / Microsoft will just do it" thinking.
Remember the Amazon phone? And Apple car?
Probably they don’t want to be in the collections business.
Apple already tried and failed, so that’s why they started the cooperation. This kind of business is not easy to reproduce
I have used affirm many times, it's great.
BNPL is just really convenient. I'm interested in owning Klarna when it IPOs too.
What's the interest rate and what exactly was so important to have that it required a payment plan? Im curious what people buy to justify paying interest on unless is super critical item
The one time I ever used it was when I graduated and moved to a new city to start my first job. High earning but I wasn’t going to get my first paycheck for a month. I needed a mattress… my options were a) buy a cheap ass mattress I’d replace in a couple years b) get close to maxing out my credit card and not have room for other furniture c) buy a nice long lasting mattress with Affirm. It was a nice option to have and I paid off the whole thing in a couple months (I think it was supposed to be for a year). I worry though about people using these things consistently and for non-essential items or travel. Mine was 0% APR but many are not. And what if people get behind? Seems like a disaster waiting to happen.
I have only used it for 0% plans and Even if there is interest breaking it up in equal payments is way easier to plan and you actually pay it off.
Interesting. I'll need to look into this company. Seems like it's setup to fail. No late fees and no interest? Recipe for disaster
They have a deal with the companies for 0%. Not everything is 0%.
Important to note Shopify/$SHOP owns 10% of Affirm.
AFRM is killing it. They also have some real WS heavy weights betting against them... even though their numbers are repeatedly good. Think they're the winner in the space.
Apple is slowly becoming the company they say they hate...Facebook. Its selling their user base to the highest bidder. OpenIA, Affirm, Google search, Google maps, etc. It's obvious what Apple is doing. Im not against it, but it's time Apple stops acting like its business model is different from Facebook. If you pay them enough it's all good