Australian buy now, pay later firm Zip says it is seeing enthusiasm from American customers.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 company reported earnings Thursday (Feb. 19) that showed revenue growt ...

Core Insights - Affirm has become the exclusive provider of buy now, pay later (BNPL) payment options for Expedia Group brands in the U.S. [1] - The partnership will soon extend to Canadian travelers, enhancing payment flexibility for customers [2][3] Partnership Details - The collaboration between Affirm and Expedia Group is part of a multi-year expansion [2] - Affirm is now among nearly 420,000 merchants globally that offer flexible payment options [4] Customer Experience - Affirm's BNPL offerings are designed to provide clarity and confidence in payment selection for customers [3] - The partnership aims to enhance the travel planning experience by integrating payment considerations with travel choices [5] Recent Developments - Affirm reported record volumes and profitable growth in Q1 of fiscal 2026, supported by demand for transparent credit options [5] - Recent partnerships include collaborations with Bolt, Esusu, and Gr4vy to expand BNPL services and flexible payment options [6] Technology and Innovation - Expedia Group is leveraging AI, automation, and partner connectivity to meet growing travel demand [7] - The company's technology systems are designed to create a connected experience for travelers and supply partners [7]

Core Insights - Affirm Holdings Inc. is experiencing significant stock pressure, down 15% year-to-date due to sector-wide challenges and company-specific issues [1] - The company's Momentum score in Benzinga's Edge Stock Rankings has sharply declined from 72.68 to 21.46, reflecting the stock's recent downturn [2] Company Performance - Affirm's shares fell by 3.92% on Thursday, closing at $62.80, and dropped another 1.82% overnight, indicating a negative trend [4] - The stock is rated high on Growth but performs poorly on Value and Momentum, with unfavorable price trends across short, medium, and long-term periods [4] Market Sentiment - The decline in Affirm's stock was exacerbated by a short report from activist short-seller Kerrisdale Capital, which criticized the company's credit fundamentals and reliance on financially unstable consumers [3]

Core Insights - The Buy Now, Pay Later (BNPL) industry is currently a polarizing topic in the market, generating significant discussion among investors and analysts [1]. Group 1: Market Sentiment - There is considerable noise in the market regarding the BNPL industry, with varying opinions from critics and supporters [1]. Group 2: Analyst Perspective - The article is written from a personal perspective, aiming to provide insights for both beginners and advanced readers, focusing on business and economic analysis [1].

Core Insights - The "Buy Now, Pay Later" (BNPL) services are becoming increasingly popular during the holiday shopping season, with spending expected to reach $20.2 billion, an 11% increase from the previous year [2] - Annual BNPL spending is projected to hit $116.7 billion by 2025, doubling from 2022 and increasing more than sevenfold compared to 2020 [3] - A survey indicates that half of holiday shoppers are likely to use BNPL services if available, highlighting its growing acceptance [4] Industry Trends - BNPL services are embedded in consumer culture, leading to higher average order values—91% for enterprises and 62% for small businesses [5] - Despite the growth, there are rising concerns about the financial strain on consumers, with 41% of users admitting to missing payments, up from 34% last year [6] - Financial experts warn that BNPL can create a false sense of affordability, leading consumers to make purchases beyond their means [7] Regulatory Environment - There is increasing regulatory scrutiny on BNPL services, with proposed legislation aimed at extending consumer protections similar to those for credit cards [10] - A multistate inquiry into major BNPL providers is underway, focusing on fees, disclosures, and consumer risks [11] - The regulatory landscape is inconsistent, with BNPL products being treated differently across states, leading to confusion and potential regulatory arbitrage [12] Market Performance - The year 2025 has been mixed for BNPL companies, with varying stock performances: PayPal down 30.54%, Block down 24.90%, Affirm up 25.69%, Klarna down 31.67%, Sezzle up 65.27%, and Zip up 7.32% [15]

Core Insights - Financial institutions and fintech companies are capitalizing on simplifying money management and providing easier access to funds for customers [1] - While traditional banks show moderate growth, emerging fintech stocks like Sezzle present potential for higher returns [1] Company Overview: Sezzle - Sezzle is a leading player in the buy now, pay later (BNPL) market, offering customers the ability to split purchases into smaller monthly payments [3] - The company reported a 67% year-over-year revenue growth and a 73% increase in net income for Q3, indicating strong market share gains and margin expansion [4] - Sezzle's net profit margin stands at 22.8%, the highest in the BNPL industry [4] Market Potential - The extreme bullish scenario for Sezzle suggests that BNPL could replace credit cards or significantly capture market share in the coming years [5] - Sezzle has nearly 3 million active customers, positioning it well for future growth [5] Concerns and Resilience - Concerns exist regarding the sustainability of BNPL due to high living costs, contributing to a 60% decline in Sezzle's stock from its all-time high [6] - Despite these concerns, Sezzle's former chief revenue officer noted that 95% of customers paid on time, reflecting a positive trend in repayment behavior [7] - Sezzle has set aside $33.7 million for credit losses, which have more than doubled year-over-year, yet continues to attract new customers and maintain sufficient cash reserves [8] Industry Outlook - Financial stocks, including Sezzle, are expected to deliver returns as money management remains a necessity for consumers [9] - Sezzle's recent stock correction may present an attractive investment opportunity as it continues to gain market share in the BNPL sector [9]

Market Overview - US stocks ended on a mixed note, with the S&P 500 and Dow falling for the third consecutive session, while the Nasdaq Composite gained slightly [2][15] - The S&P 500 closed at 6,800.26, down 0.24%, and the Dow Jones Industrial Average finished at 48,114.26, down 302.30 points or 0.62% [2][15] - The Nasdaq Composite rose 0.23% to end at 23,111.46 [2][15] Labor Market Data - The November jobs report indicated that the US economy added 64,000 jobs, surpassing economists' expectations of 45,000 jobs [3][15] - However, the report revised October payrolls lower, showing a loss of 105,000 jobs, and the unemployment rate increased to 4.6%, slightly above the forecast of 4.5% [4][15] Federal Reserve Expectations - Despite mixed labor market signals, expectations regarding Federal Reserve policy remained stable, with a 24% chance of a rate cut next month according to the CME FedWatch Tool [6][15] Economic Sentiment - Analysts suggest the economy is "catching its breath," with job growth holding but showing signs of slowing momentum [7][15] - Investors are encouraged to focus on quality, income, and long-term themes rather than short-term fluctuations [7][15] Sector Performance - Energy stocks were significantly impacted as US crude oil prices fell to their lowest level since early 2021, with major oil producers like Exxon Mobil and Chevron each declining about 2% [8][15] - Technology stocks experienced mixed performance, with profit-taking in high-profile AI companies affecting the broader market [9][15] - Financial and technology stocks were among the day's strongest performers, with Sezzle surging 10.8% after announcing a $100 million stock buyback program [10][15] - Conversely, energy stocks led the laggards, with Navan Inc plunging 14.3% after reporting widening losses [11][15]

Core Insights - Affirm Holdings, Inc. (AFRM) has partnered with Pacsun to offer pay-over-time options at checkout, targeting holiday shoppers [1][9] - The partnership allows Pacsun customers to choose interest-free biweekly payments or longer monthly plans up to 24 months, enhancing customer engagement [2][9] - Affirm's strategy of no hidden fees or late fees is expected to drive transaction volume and customer loyalty [2] Group 1: Partnership and Strategy - The collaboration with Pacsun aims to capture increased demand during the holiday season, a critical time for retail sales [1][4] - Pacsun is incentivizing customers with a limited-time 10% discount using a special AFFIRM code, promoting higher adoption of the BNPL service [2] - The fashion retail sector is well-suited for buy now, pay later (BNPL) services due to the nature of frequent and impulse purchases [3] Group 2: Financial Expectations - Affirm anticipates December quarter revenues to be between $1.03 billion and $1.06 billion, driven by the holiday shopping surge [3][9] - The company expects its gross merchandise volume (GMV) for the December quarter to range from $13 billion to $13.3 billion [4] Group 3: Market Position and Competitors - Affirm's merchant network has expanded to 420,000 partners, enhancing its visibility among a younger audience that favors installment payments [3] - Competitors like PayPal and Block are also expanding their BNPL services, with PayPal reporting an 8% increase in total payment volume to $458.1 billion [5] - Block's BNPL platform achieved a GMV of $9.7 billion, reflecting a 17% year-over-year increase, indicating a competitive landscape [6] Group 4: Valuation and Earnings Estimates - Affirm's shares have increased by 12.8% year to date, outperforming the broader industry but lagging behind the S&P 500 Index [7] - The company trades at a forward price-to-sales ratio of 5.08X, higher than the industry average of 4.83X, indicating a premium valuation [11] - The Zacks Consensus Estimate predicts a significant earnings surge for Affirm, with a projected 566.7% year-over-year growth for fiscal 2026 [13][14]

Core Viewpoint - Ovanti Ltd is pursuing a backdoor listing on Nasdaq through a SPAC deal with Miluna Acquisition Corp, which could significantly enhance its market presence and valuation [1][2][3]. Group 1: Company Overview - Ovanti's flagship product, Flote, is a Buy Now Pay Later (BNPL) service aimed at the subprime market in the U.S., targeting consumers who struggle with traditional credit scores [3]. - The proposed SPAC deal values Ovanti at approximately US$300 million (A$460 million) [3]. Group 2: Strategic Moves - The signing of a Letter of Intent (LOI) with Miluna marks a significant milestone for Ovanti, following a global search for a suitable U.S. SPAC partner [4]. - Ovanti's strategy aligns with industry trends, as seen with peers like Zip and Sezzle, who are also pursuing U.S. listings to enhance shareholder value and support growth in the U.S. market [5]. Group 3: Market Context - Miluna Acquisition Corp recently listed on Nasdaq with 6 million units priced at US$10 each, indicating a strong entry into the U.S. market [2]. - The deal is expected to provide Ovanti with access to a more liquid stock market, which is crucial for its growth strategy in the U.S. [2].

Core Insights - The strong year for initial public offerings (IPOs) on Wall Street has diminished due to a government shutdown and cautious investor sentiment [1][2] - Many anticipated IPOs for the end of this year are likely to be delayed into next year as the Securities and Exchange Commission (SEC) addresses a backlog of registration statements [2][3] - Despite the backlog, Wall Street expects several IPOs in November and December that are in the later stages of the regulatory process [3] Company Performance - Central Bancompany raised $373 million from its IPO following the end of the government shutdown, but November is projected to be one of the slowest months for IPOs in 2025 [4] - Medical supplies company Medline is expected to go public in December, potentially raising up to $5 billion, while cryptocurrency technology company BitGo is also a potential IPO candidate for next month [5] - Figma has lost nearly all its gains since going public in July, now trading slightly above its IPO price of $33 per share [6] - Klarna, which priced its IPO at $40 per share in September, is currently trading around $29 per share, while CoreWeave, initially priced at $40, has seen a significant pullback to about $72 per share [7] - Navan went public at $25 per share during the government shutdown but is now trading at approximately $15 [7] Market Trends - The S&P 500 is experiencing a challenging November, down 3.5% for the month, primarily driven by declines in the tech sector, which had previously seen gains due to enthusiasm over artificial intelligence developments [8]