Apple, Peloton, Amazon, Bitcoin – The Cogs In Affirm’s “Buy Now, Pay Later” Lending Machine

Affirm Holdings Inc. (NASDAQ:AFRM) mentioned some key drivers of its growth during the company’s second quarter earnings call.

Apple Inc. (NASDAQ:AAPL): Affirm said its Canadian business more than tripled due to new partnerships, including with the Tim Cook-led by Apple. This partnership was launched in the fall in response to strong consumer demand, in accordance with Michael LinfordChief Financial Officer of Affirm.

See also: How to Buy Affirm Stock (AFRM)

Platoon (NASDAQ:PTON): Peloton is Affirm’s second-largest merchant partner by gross merchandise value, or GMV, in the second quarter. Linford said no merchant accounted for more than 10% of Q2 GMV.

Affirm entered the Australian market with Peloton in the second quarter. The buy now, pay later company is eager to expand its business with the exercise bike maker there, according to Linford.

Linford said Peloton “always provides us with an incredible amount of volume. And we admire their brand.

“We admire the loyalty they have among their consumers. And we will continue to partner with them,” said Affirm’s CFO.

Amazon.com, Inc. (NASDAQ:AMZN): Linford said getting past the testing phase of Affirm’s collaboration with Amazon ahead of the holidays was a “significant driver of growth.” Even without Amazon, GMV has doubled year over year.

GMV reached $4.5 billion in the second quarter, an increase of $2.4 billion over last year. This figure includes the volume of the partnership with the Jeff Bezos-founded e-commerce giant.

“We completed the launch of our interest-bearing program at Amazon in November ahead of Black Friday. And while the program is still in its infancy with a long roadmap of optimizations to work on, we’ve seen rapid consumer adoption,” Linford said.

Cryptocurrencies: In September, Affirm joined the likes of PayPal Holdings Inc. (NASDAQ:PYPL) by allowing users to buy and sell Bitcoin (CRYPTO: BTC) and other cryptocurrencies.

Linford touched on cryptocurrencies during the conference call and noted that the company showcased the beta version of its user-friendly cryptocurrency savings.

Price Action: Shares of Affirm closed down 21.4% in the regular session at $58.68 and fell another 7.3% to $54.40 in after-hours trading.

Read more : Newegg offers customers a pay-over-time option through an Affirm partnership

Photo: Courtesy of Affirm

Comments are closed.