Affirm reportedly logged a 430% increase in its 2023 shares, outperforming big technology companies valued at $5 billion or more.
Last year, the company ended 2022 in a challenging position after the stocks took a 90% plunge. With the help of buy now, pay later adoption and strategic partnerships. The company is set to make bigger leaps in the upcoming months.
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Affirm Outperforms Big Tech in 2023
A CNBC report detailed that Affirm succeeded due to the booming trend of BNPL offerings. For 2023, more retailers have signed up with Affirm, making it possible for consumers to enjoy a different payment option.
In November, the company got a big boost during Cyber Monday as part of its expanded partnership with Amazon. Shoppers who opt for the BNPL service can split the cost of their purchase into four or more installments, which can be paid within three months to one year.
One of the major selling points of Affirm is that the purchase does not accrue compounding interest. Money lenders are known for making money from interest payments, and higher interest rates are a pain for customers.
Affirm's Finds Success
Affirm was founded in 2012 by Paypay co-creator Max Levchin. The company is not alone in the BNPL service as it competes with Klarna, Block's Afterpay, and Zip. Regardless, shoppers have put their trust in Affirm, as evidenced by the company's skyrocketing sales.
According to the company, their BNPL service is currently used by 16.9 million customers and has more than 266,000 merchant partners. With this, reports revealed that the company is seeking an international expansion.
During its investor day last month, the company announced its plans to launch a spending account directly connected to its debit card, allowing ATM access and direct deposit. "We get more data. We underwrite more transactions. We meet more people," an Affirm spokesperson promised.
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