This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Senate Democrats want the buy now, pay later industry to disclose who uses their services, how often they do and who pays late.  Sens. Elizabeth Warren of Massachusetts, Tammy Duckworth of Illinois, Cory Booker of New Jersey, Richard Blumenthal of Connecticut and Mazie Hirono of Hawaii sent letters Wednesday to the heads of Affirm Holdings, Block-owned Afterpay, Kl ...

Buy now, pay later (BNPL) platform Klarna is expanding its partnership with gift card company Blackhawk Network (BHN).By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The new collaboration, announced in a news relea ...

The data also revealed that in 2022, one-fifth of consumers with a credit record financed at least one purchase with a BNPL loan, up from 17.6% in 2021; about 20% of borrowers were heavy users originating more than one BNPL loan on average each month, an increase from 18% in 2021; and the average number of new loans originated per borrower increased from 8.5 to 9.5.The numbers that are available are both ugly and dated. Consumer Financial Protection Bureau data published in January of this year — after the ...

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. American Express isn't worried about competition from buy now, pay later companies because the credit card giant targets wealthier customers, an Amex executive said this week.  BNPL users generally have lower credit scores and are on the lower end of the income spectrum, whereas New York City-based American Express has cardholders who tend to come from higher incom ...

Core Insights - The CEO of Affirm, Max Levchin, believes that AI and humanoid robots will serve as tools to enhance human productivity rather than replace jobs [1][3] - The Buy Now, Pay Later (BNPL) market is experiencing significant growth, with 15% of Americans using BNPL services in 2024, and Affirm's stock has increased by 25% in 2025 [2] - Affirm has reported strong fiscal first-quarter results for 2026, with analysts maintaining a positive outlook on the company's growth and stock performance [4][5] Company Performance - Affirm's recent fiscal first-quarter 2026 results were solid, leading to bullish analyst ratings, including a Buy rating from Goldman Sachs with a price target of $94 [4] - JPMorgan has rated Affirm as Overweight, projecting premium volume growth exceeding 20% and expanding operating margins due to increased penetration at platform partners like Shopify, Amazon, and Apple Pay [5] Industry Trends - The sentiment around AI in the workforce is mixed, with a survey indicating that 79% of respondents feel AI has impacted their roles, reflecting concerns about job displacement [3] - Levchin emphasizes that AI will enhance human intelligence and decision-making capabilities, suggesting a future where humans and AI collaborate effectively [6]

Core Insights - Buy now, pay later (BNPL) companies like Affirm are intensifying competition with traditional credit card companies [1] Group 1: Industry Trends - The BNPL sector is experiencing growth as consumers seek alternative payment options to credit cards [1] - Companies in the BNPL space are innovating their offerings to attract more customers and increase market share [1] Group 2: Company Strategies - Affirm is focusing on enhancing its product features to better compete with credit card offerings [1] - The company aims to position itself as a viable alternative to credit cards by emphasizing flexibility and consumer-friendly terms [1]

Core Insights - Walmart de México has integrated a buy now, pay later (BNPL) option into its digital payments app, Cashi, allowing users to make online purchases and pay in installments without needing a credit card [2][3] - Aplazo, the BNPL partner, has preapproved 1.5 million credit lines as part of this collaboration, enhancing credit accessibility for consumers [2][3] Group 1: Partnership and Features - The partnership between Walmart de México and Aplazo enables users to register and receive approval in under five minutes, choose biweekly payment options, and view payment amounts and total costs instantly [3] - Aplazo's CEO emphasized that this collaboration aims to make credit more accessible, transparent, and responsible, addressing the needs of over 60 million adults in Mexico who require flexible financial options [4] Group 2: Market Context and Consumer Behavior - The PYMNTS Intelligence report indicates that Mexico is transitioning into a mobile-first consumer market, with nearly half of purchases made via mobile devices [5] - The report also highlights that 29% of Mexican shoppers faced payment-related issues during their last online purchase, presenting an opportunity for retailers to improve payment processes and enhance customer experience [6]

Core Insights - Affirm Holdings, Inc. is scheduled to report its Q1 fiscal 2026 results on November 6, 2025, with an expected earnings per share (EPS) of 11 cents and revenues of $885 million [1][6] - The earnings estimate has improved by 1 cent over the past 60 days, indicating a year-over-year EPS growth of 135.5% and a revenue growth of 26.7% [2][6] - For fiscal 2026, the revenue estimate is $3.99 billion, reflecting a 23.9% year-over-year increase, with the current fiscal year's EPS projected at 86 cents, a significant rise from 15 cents a year ago [3] Earnings Expectations - Affirm is predicted to beat earnings estimates due to a positive Earnings ESP of +3.53% and a Zacks Rank of 3 (Hold) [4] - The consensus estimate for merchant network revenues is $247.9 million, indicating a 34.5% increase from the previous year [7] - The Gross Merchandise Volume (GMV) is expected to grow by 36.6%, with management anticipating it to be between $10.1 billion and $10.4 billion [8] Transaction Metrics - Active consumers are projected to grow by 20.8% year-over-year, with transactions per active consumer expected to rise by 12.4% [9] - Card network revenues are estimated to improve by 38.3%, while interest income is projected at $435.9 million, a 15.6% year-over-year increase [10] - Servicing income is expected to reach nearly $37 million, reflecting a 42.3% jump from the prior year [11] Stock Performance - Affirm's stock has increased by 18.4% year-to-date, outperforming the industry growth of 14.8% and significantly surpassing the S&P 500's increase of 17.9% [12] Valuation Insights - Affirm's current valuation is stretched, trading at 5.45X forward 12-month sales, above its three-year median of 3.97X and the industry average of 5.34X, suggesting limited near-term upside potential [16][18] Strategic Developments - The company is expanding globally, entering new markets in Europe and Australia, and forming partnerships with major players like Shopify, Apple Pay, and Google [19][20] - Affirm is diversifying its offerings, including partnerships in the gaming sector and developing new payment solutions, aiming to build a comprehensive financial network beyond its core BNPL operations [20][21] - The company's loyal customer base, driven by transparent pricing and seamless integration, supports stable cash flows, although high leverage poses risks in a competitive BNPL market [21]

Core Insights - Affirm Holdings, Inc. has expanded its partnership with New York Life Insurance, which will purchase up to $750 million in installment loans through 2026, indicating strong growth potential for the company [1][2] - The partnership with New York Life builds on their existing relationship and supports Affirm's annual loan volume of $1.75 billion, reflecting a trend of insurers investing in consumer finance due to rising interest rates [2] - Affirm has also strengthened its position in the market by forming strategic partnerships with Wayfair, Fanatics, and FreshBooks, enhancing its payment solutions and expanding its reach [3][4] Company Developments - The expanded partnership with New York Life is a significant development, as they have already invested nearly $2 billion in Affirm's loan structures, showcasing confidence in Affirm's business model [2] - The integration of Affirm's payment solutions into Wayfair's checkout process highlights the growing demand for flexible payment options among consumers [3] - Affirm's commitment to transparent loans with no hidden fees or late penalties positions it favorably in the financial technology sector, appealing to both consumers and merchants [4] Market Trends - The trend of insurers like New York Life investing in consumer finance is driven by the potential for higher returns amid rising interest rates, which could benefit Affirm's growth trajectory [2] - The partnerships with major companies such as Wayfair and Fanatics indicate a broader acceptance and demand for "buy now, pay later" services in the retail sector [3]

Core Insights - Klarna is entering the premium credit card market with a membership program that offers alternatives to high-end credit cards [1][2] - The company plans to roll out its Premium and Max membership programs in the U.S., which are priced at $18 and $45 per month respectively [2][10] Membership Programs - Klarna's Premium membership costs approximately $220 annually and includes access to over a dozen subscriptions, cash back, and other perks [9] - The Max program, costing about $540 annually, offers additional benefits such as travel and rental-car insurance, 1% cash back, and access to airport lounges through LoungeKey [10] Competitive Landscape - Klarna's move reflects a broader trend where traditional banks are enhancing their premium offerings, with companies like American Express and JPMorgan Chase increasing fees while adding benefits [5][8] - Citigroup has also launched its own premium card, Strata Elite, which competes with Klarna's offerings [8] Consumer Impact - The introduction of Klarna's membership program may lead to increased competition for premium credit card customers, potentially affecting the desirability of airport lounges as more consumers gain access [4]