Core Insights - PayPal's Buy Now, Pay Later (BNPL) service is a significant growth driver, with total payment volume increasing over 20% year over year in Q2 2025 and monthly active accounts growing by 18% [1][8] - The average order value for transactions using BNPL is more than 80% higher than standard checkout, leading to increased merchant sales and revenue opportunities [2][8] - PayPal is expanding its BNPL offerings into omnichannel retail with the "Pay Later To Go" product, which allows installment payments in physical stores, enhancing its competitive position [3][8] PayPal's BNPL Performance - BNPL total payment volume rose over 20% year over year in Q2 2025, with active accounts increasing by 18% across nine global markets [1][8] - Retailers utilizing BNPL, such as Ace Hardware, reported a 35% increase in PayPal sales and a sevenfold increase in order size [2][8] Competitive Landscape - Standalone BNPL providers are innovating rapidly, and the entry of major players like Apple is intensifying competition [4] - Block's Afterpay saw a 17% year-over-year growth in BNPL Gross Merchandise Value (GMV) to $9.11 billion in Q2 2025, with a high on-time payment rate of 96% [5] - Affirm Holdings reported a 45.6% year-over-year increase in total transactions, reaching 31.3 million, with a 94% repeat transaction rate [6] Valuation and Estimates - PayPal shares have declined 20.9% year to date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 12.13X, significantly lower than the industry average of 22.17X, indicating a potentially undervalued position [10] - The Zacks Consensus Estimate for PayPal's earnings in 2025 is $5.22 per share, reflecting a 12.3% growth over 2024, with a further estimate of $5.77 for 2026, suggesting 10.5% growth year over year [11]

Core Viewpoint - Affirm Holdings, Inc. (AFRM) is experiencing strong market interest, but its valuation metrics, particularly the forward price-to-sales (P/S) ratio of 6.26X, raise concerns about sustainability compared to historical and industry averages [1][2][4] Financial Performance - Affirm's free cash flow increased by 109.3% year-over-year to $609 million, indicating strong cash generation [4][7] - The P/FCF ratio stands at 44.25X, significantly higher than the industry average of 28.86X, suggesting a premium valuation [4][8] - The company ended the fiscal third quarter with $1.4 billion in cash and cash equivalents, a 33.4% increase from the end of fiscal 2024 [8] Growth Drivers - 94% of transactions in Q3 were from repeat users, with transaction volumes rising 45.6% to 31.3 million [7][9] - Affirm is expanding its offerings into essential categories such as groceries and travel, partnering with major retailers like Costco [10] - The company is broadening its product ecosystem by investing in debit solutions and B2B tools, enhancing customer engagement [11] Market Expansion - Affirm's partnership with Shopify aims to launch operations in Europe, targeting markets like France, Germany, and the Netherlands [11] - The company is also entering the gaming sector through a collaboration with Xsolla, focusing on younger consumers [12] Earnings Outlook - The Zacks Consensus Estimate predicts a 103% year-over-year increase in fiscal 2025 earnings to 5 cents per share, with further growth expected in fiscal 2026 [13] - Revenue projections for fiscal 2025 and 2026 are anticipated to grow by 37.2% and 22.8%, respectively [13][14] Stock Performance - Affirm's shares have increased by 28.4% year-to-date, outperforming the industry average of 22.6% and competitors like PayPal and Block [15] Competitive Landscape - The BNPL market is highly competitive, with significant pressure from established players like PayPal and Block, as well as traditional financial institutions [17] - Affirm faces challenges in retaining large merchants, as evidenced by Walmart's switch from Affirm to Klarna [17] Cost Management - Operating expenses have been rising, with a 76.6% increase in fiscal 2022 and a 7.4% increase in the latest fiscal quarter, necessitating tighter cost discipline [18] Investment Considerations - While Affirm shows strong growth potential and cash flow generation, its high valuation and competitive pressures suggest a balanced risk/reward profile [19][20]

Core Insights - Sezzle Inc.'s stock has surged 324.1% over the past year, significantly outperforming the industry growth of 19.7% and the S&P 500 Composite's 15.9% rally [1] - The company's performance also exceeds that of close competitors, PagSeguro Digital and Western Union, which saw declines of 38.1% and 29.2%, respectively [1] Performance Overview - Year-to-date, Sezzle's stock has increased by 115.5%, outpacing PagSeguro Digital's 44.2% growth and Western Union's 21.2% decline [4] - In the second quarter of 2025, Sezzle recorded a gross merchandise volume (GMV) of $927 million, reflecting a 76.4% year-over-year revenue increase [7][8] Product Development - Sezzle launched its On-Demand product in October 2024, allowing flexibility for Pay-in-4 transactions wherever Visa is accepted, positioning itself as a Buy Now, Pay Later solution [5] - The On-Demand product has seen success, with Monthly On-Demand Subscribers (MODS) reaching 748,000 in Q2 2025 after a seasonal dip [6] Profitability Metrics - Sezzle reported a return on equity (ROE) of 102.9% and a return on invested capital (ROIC) of 58.2%, both significantly above industry averages of 48.6% and 22.2%, respectively [9][11] - The company's current ratio stood at 3.51, well above the industry average of 1.15, indicating strong liquidity [13] Sales and Earnings Outlook - The Zacks Consensus Estimate for Sezzle's 2025 sales is $442.1 million, representing a 63.1% year-over-year increase, with a further 28.4% rise expected in 2026 [15] - Earnings estimates for 2025 are projected at $3.27 per share, indicating a 77.7% year-over-year surge, with an additional 32.1% increase anticipated in 2026 [15] Analyst Sentiment - Over the past 60 days, EPS estimates for both 2025 and 2026 have been revised upward, reflecting analysts' confidence in the company's growth potential [16] - Sezzle is considered a fundamentally strong stock, with a Zacks Rank of 2 (Buy), indicating positive sentiment among analysts [19]

Core Insights - Airbnb Inc. has launched a "Reserve Now, Pay Later" feature for U.S. customers, allowing travelers to book certain domestic stays without upfront payment [1][2] - The feature is designed for listings with moderate or flexible cancellation policies, enabling guests to delay full payment until just before the property's free cancellation window closes [2][3] - This new option aims to provide more flexibility for travelers, particularly for groups coordinating payments, and complements existing payment options like "Pay Part Now, Part Later" and "Pay Over Time" [3][4] Industry Trends - The introduction of the "Reserve Now, Pay Later" feature aligns with a growing consumer preference for installment and deferred payment products, as evidenced by an estimated $175 billion in BNPL transactions in the U.S. in 2024 [6] - The demand for flexible payment options is increasing, with consumers seeking greater financial management and convenience in uncertain economic conditions [6] - Airbnb's expansion of payment flexibility tools is expected to lower the barrier to commitment for cost-conscious travelers, potentially driving more bookings [4][5]

Core Insights - Affirm is launching two integrations to enhance its buy now, pay later (BNPL) services, strengthening partnerships with Google and Stripe [1][4] - The integration with Google Chrome allows U.S. shoppers to select Affirm directly from the browser's autofill menu at checkout, facilitating easier access to installment payment plans [2][3] - The integration with Stripe Terminal enables in-store shoppers to scan a QR code for financing options, with repayment terms ranging from 30 days to 60 months [4] Integration with Google - Affirm's integration with Google Chrome's autofill menu allows eligible consumers to choose biweekly or monthly payment plans for purchases between $35 and $30,000 [3] - This feature requires no additional setup for merchants and will be automatically activated on select sites, aiming to make the payment process more seamless [3] Integration with Stripe - Affirm becomes the first BNPL provider to integrate with Stripe Terminal, allowing consumers to apply for financing in participating stores by scanning a QR code [4] - This integration is expected to help merchants drive growth and meet customer needs more effectively [4] Consumer Behavior Insights - Research indicates that nearly three-quarters of consumers' last non-grocery retail purchases were made in person, highlighting the importance of in-store payment options [5] - BNPL services influence consumer purchasing behavior, with many users delaying purchases or opting for cheaper items if BNPL is unavailable [6] - A significant portion of consumers relies on BNPL out of necessity, often linked to their income levels [6] Recent Partnerships - Affirm has been actively forming partnerships to boost adoption, including a recent collaboration with Shopmonkey for car repair shops and an expansion of its partnership with travel search engine Kayak [7]

Core Insights - Affirm Holdings, Inc. (AFRM) has expanded its partnership with Google Pay, integrating its payment options into Chrome's autofill feature, enhancing accessibility for customers [1][8] - The integration allows U.S. customers to select "Pay over time options" for purchases ranging from $35 to $30,000, with interest rates starting at 0% APR and no hidden fees [2][8] - The transaction count for Affirm increased by 46% year-over-year in Q3 of fiscal 2025, indicating strong consumer interest and adoption of its payment solutions [4][8] Company Developments - The new autofill feature provides a secure and efficient checkout process for both new and existing Affirm users, requiring no additional integration from merchants [3] - Affirm's flexible payment plans are designed to enhance consumer purchasing power and alleviate financial strain, potentially leading to increased transaction volumes and consumer interest income [4] Competitive Landscape - Key competitors in the Buy Now, Pay Later (BNPL) market include PayPal Holdings, Inc. (PYPL) and Visa Inc. (V), both of which have established strong market positions [5][6] - PayPal processed 6.2 billion transactions in Q2 of 2025, with net revenues rising 5.1% year-over-year to $8.3 billion [5] - Visa's processed transactions increased by 10% year-over-year in Q3 of fiscal 2025, with total revenues advancing 14% year-over-year [6] Financial Performance - Affirm's stock has surged by 189.3% over the past year, significantly outperforming the industry average growth of 47.4% [7] - The Zacks Consensus Estimate for Affirm's fiscal 2025 earnings suggests a 103% improvement from the previous year, with revenue growth projected at 37.2% year-over-year [10] - Affirm currently trades at a forward price-to-sales ratio of 6.17, above the industry average of 5.84 [9]

Watch: Amid economic uncertainty, “buy now, pay later” has exploded among consumers. Affirm and Afterpay speak to WSJ about the industry’s growth, risks and new opportunities. https://t.co/NtfyHJYN08 ...

Consumer Credit Trends - Buy now, pay later services offer an alternative to credit cards for some Americans [1] - Individuals with low credit scores are more prone to carrying revolving balances on credit cards [1] - Credit card users with revolving balances tend to carry over debt month to month instead of paying it off [1]

Block aims to be an end-to-end financial hub for both consumers and merchants, integrating P2P payments, commerce tools, banking services and bitcoin capabilities across Cash App and Square. Block, owner of Square and Cash App, is betting that the future of money won't look a lot like its past. 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 Condition ...

"Buy Now, Pay Later" loans are booming in Asia because of money from private credit investors. Some governments are warning consumers about high interest loans and the risks of excessive debt, while lenders say they're opening up underserved markets. https://t.co/KvfOAiBTxK ...