Affirm share prices surged 20% on news that mega-retailer Target is integrating the buy now, pay later (BNPL) solution at checkout for purchases of over $100, CNBC reported. Target also announced that it is teaming up with Sezzle on BNPL to get ready for the holiday shopping season.
“We know our guests want easy and affordable payment options that work within their family’s budget,” Target President of Financial and Retail Services Gemma Kubat said in a company blog post. “Through our partnerships with Affirm and Sezzle, Target is investing in new financial tools that make our shopping experiences more flexible and personalized to guests’ needs, right in time for the holiday season.”
See also: Retailers Embrace Early Holiday Shopping to Combat Tangled Supply Chains
BNPL options are short-term installment loans available at check out without fees or interest that offer buyers an easier way to pay without mounting credit card debt. The conversion rate of BNPL transactions is estimated at 20% to 30%, with the average total checkout price roughly 30% to 50% higher than it would have been without, CNBC reported.
In August, Affirm partnered with Apple to offer financing for iPhones, iPads and Macs. The BNPL startup then announced it was collaborating with Amazon to offers its services for purchases of $50 or more. Affirm shares escalated 47% on the news that Amazon became its first third-party provider of installment loans, according to CNBC.
Read more: Amazon Moves Into BNPL Space With Affirm Partnership
Target customers can apply with Affirm to get started and then choose to pay with Affirm and decide on monthly repayment, the blog post stated.
“You’ll never pay more than you agreed at checkout as Affirm doesn’t charge any late or hidden fees,” Target said in the post.
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