Buy Now Pay Later Stocks

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Contributor, Benzinga
December 2, 2021

Financial service companies continue to grow and build every day due to a highly concentrated market and expansive trade. Investing is handled in a variety of different ways, and there’s never been an easier time to invest. Buy now pay later (BNPL) stocks are just another example of this. 

Stocks offering BNPL provide a new twist on consumer lending installments, and it is a prevalent investment to diversify your portfolio. As a result, the market has become popular, with Bank of America stating the BNPL market could grow 10x to 15x by 2025.

Are you curious about buy now, pay later stocks? Learn more now with Benzinga’s guide.

The Best Buy Now Pay Later Stocks

Now that you have a better understanding of the service, here are some of the best buy now and pay later stocks you may want to invest in.

Affirm

$39.29
1.94[5.19%]
Last update: 7:55PM (Delayed 15-Minutes)
Get Real Time Here
Open38.260Close39.300
Vol / Avg.7.875M / 19.012MMkt Cap12.057B
Day Range37.550 - 39.51052 Wk Range8.800 - 52.480

Affirm operates as a financial lender of installment loans for consumers, enabling them to finance purchases and pay over time. It does not charge any extra fees, and no late fees are charged if payments are missed. 

The company recently partnered with Amazon to allow buy now pay later purchases. It makes money based on interest payments, which vary between 0% to 30%, depending on the time of the repayment. It is easy to set up, and there are no upfront fees.

Although cons include a slightly high-interest rate (up to 30%), taking out a loan can affect your credit rating. Keep in mind Affirm also does not report on-time payments back to credit bureaus, so you cannot boost your credit.

PayPal

$60.14
0.81[1.37%]
Last update: 7:56PM (Delayed 15-Minutes)
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Open59.570Close60.160
Vol / Avg.11.468M / 19.147MMkt Cap64.455B
Day Range59.440 - 60.24052 Wk Range50.250 - 79.265

PayPal has recently jumped onto the BNPL bandwagon with its service, allowing users to opt into the payment mechanism. It recently acquired Paidy, a Japanese BNPL platform, for $2.7 billion. This transaction has given PayPal access to Paidy’s 6 million registered users.

PayPal has now expanded its BNPL services to the U.S., France, Germany, and the U.K. In addition, the company recently reported around 7 million consumers had used the BNPL service.

PayPal is a leader in the digital economy and online payment solutions, so it’s an important major player in the BNPL space.

Amazon

$173.46
-1.27[-0.73%]
Last update: 7:59PM (Delayed 15-Minutes)
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Open174.075Close173.540
Vol / Avg.31.142M / 48.435MMkt Cap1.802T
Day Range172.860 - 174.62052 Wk Range88.120 - 176.370

Global powerhouse Amazon recently adopted BNPL service, eyeing up the significant potential for its customers. The company expanded its partnership with Affirm to help further provide the service to its large customer base. 

The payment option is open to Amazon customers globally. The addition of the BNPL service will likely only strengthen its significant market share and attract more customers to the platform.

Shopify

$76.63
-0.93[-1.20%]
Last update: 7:59PM (Delayed 15-Minutes)
Get Real Time Here
Open77.560Close76.630
Vol / Avg.7.449M / 10.981MMkt Cap98.637B
Day Range75.900 - 77.63052 Wk Range39.020 - 91.570

Shopify has joined the BNPL hype by partnering with Affirm. With the introduction of Shop Pay, customers are allowed to split their purchases into 4 equal payments with 0% interest and no hidden fees.

Afterpay

Open-Close-
Vol / Avg.- / -Mkt Cap-
Day Range- - -52 Wk Range- - -

Afterpay is currently listed in Australia. However, in August, Square announced a deal to acquire the company for $29 billion. The transaction is expected to close in the first quarter of 2022. 

Square plans to offer its BNPL service to its U.S. customers by early 2022 and looks to expand to other regions such as Canada, New Zealand, the U.K. and Europe.

Best Online Stock Brokers

The growth of BNPL has been tremendous in recent times, and it doesn't show any signs of slowing down. Here’s a look at some of Benzinga’s favorite online stock brokers.

What is a Buy Now Pay Later Service?

A buy now pay later service is a consumer lending program that has gained popularity in recent times. When you opt in to the service, you agree to the payment plan terms, where you make a purchase, receive the product and pay it back over time at a later date. 

In the majority of cases, the purchase must be of a certain amount, and interest may be paid on top of the loan. As the market has expanded, more capabilities are being met.

The greater spending ability empowers the customer, but all parties can benefit. In addition, the services provide convenience and an alternative option to credit, and in many cases, you receive the purchase upfront instead of having to pay for it in full.

Stocks such as Amazon, Target and American Airlines have joined the service. Square also recently announced the acquisition of Afterpay, a BNPL industry leader. Buy now pay later continues to become more accessible and widely used.

In recent times buy now pay later stocks have gained popularity, with share prices for particular stocks making significant gains. Acquisitions of Paidy from PayPal highlight the growth of the benefits that buy now pay later plans can bring and why they are deemed so desirable from customers. 

The idea of paying in installments over time without having to wait for the product is appealing for consumers and creates a real demand for the service. Consumers seem to feel at ease with smaller payments and the choice of the time period over which to make payments. Some BNPL arrangements accrue minimal or no interest and offer fast approval. 

In the case of BNPL stocks, most top stocks require good credit due to the risks and profitability for the buy now pay later company. 

Huge Predictions, Big Gains

Buy now pay later continues to grow and receive strong forecasts for the future. Allied Market Research reported the market could be worth nearly $4 trillion by 2030. 

The number of shoppers who use BNPL continues to grow, and the space will no doubt be an exciting market for the future.

Frequently Asked Questions

Q

Can I buy something and pay later?

A

Buying something now and paying later can be a convenient way of making purchases for an item or service without having to put money aside at that current time. It is an option that many companies are beginning to offer, but it is essential that the individual meet the payment deadlines on time and use the service wisely.

Q

Does Amazon pay later?

A

Amazon offers a pay later service that allows customers to purchase an item and pay the cost at a later date or over a period of time in installments. You must complete an online setup process to access these benefits, and it will require you to have an Amazon account.

About Sam Boughedda, Stock Market Analyst

He is an expert in the following spaces: stock market news writing, analysis, and research.