Affirm And Shopify Expand 'Buy Now, Pay Later' To Canada And UK In Global Growth Push

Affirm Holdings, Inc. AFRM and Shopify Inc. SHOP announced on Wednesday that they are accelerating their global expansion plans.

Shopify merchants in Canada with early access can now offer Shop Pay Installments, exclusively powered by Affirm, to shoppers, marking the product’s first availability outside the U.S.

Shop Pay Installments will become available to Shopify merchants in Canada and the U.K. in general this summer, with cross-border commerce capabilities between the U.S., Canada, and the U.K. to follow.

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The companies plan to expand to Australia and Western Europe next, starting with France, Germany, and the Netherlands.

Affirm looks forward to engaging with its local constituents, including shoppers, merchants, capital partners, and regulators. Affirm Holdings stock plunged 42% year-to-date.

In March, Affirm Holdings expanded its multi-year deal with JPMorgan Chase & Co’s JPM JP Morgan Payments unit, further integrating Affirm’s pay-over-time solutions into the bank’s Commerce Platform.

In March, the company lost its exclusive Walmart Inc WMT loan partnership after Klarna announced a collaboration with OnePay to offer installment loans at Walmart.

Goldman Sachs analyst Will Nance estimated that Walmart’s contribution to Affirm’s calendar 2024 GMV is roughly ~$2.2 billion (7% of the total). However, Affirm subsequently disclosed that Walmart comprised 5% of GMV (versus the analyst’s ~5-10% estimate) and 2% of operating income (versus the analyst’s 10-19% impact estimate).

Affirm Holdings is poised to benefit from BNPL’s growth in e-commerce, the younger generation’s preference for installment financing, and BNPL’s more tailored credit offerings, as per Nuance.

Price Action: At the last check on Wednesday, AFRM stock was up 4.11% to $37.94, while SHOP was up 2.18%.

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