Affirm Holdings, Inc. (NASDAQ:AFRM) has recently unveiled a strategic partnership with ATERNAL to become the exclusive provider of buy now, pay later (BNPL) services within the realm of art galleries. On September 7, 2023, AFRM’s stock experienced a 1.7% increase, underscoring investor confidence in the company’s potential. ATERNAL operates as an inventory management platform catering to art galleries of various sizes, and this collaboration is poised to augment its offerings to art merchants, driving further expansion.
This collaboration holds promising prospects as it enables AFRM to broaden its network by onboarding new merchants, thereby bolstering its top-line growth. The partnership is anticipated to boost the gross merchandise value in the foreseeable future. Initiatives like this one are expected to play a pivotal role in helping AFRM achieve its anticipated full-year profitability in fiscal 2024, based on adjusted operating income metrics. The company has set ambitious revenue expectations, forecasting figures exceeding $1.9 billion for fiscal 2024.
ATERNAL, through this partnership, is poised to offer flexible payment alternatives to art enthusiasts, including the option to pay over time. This addition to ATERNAL’s suite of services for art galleries, coupled with enhanced workflows and transaction insights, is expected to result in increased sales for ATERNAL’s clients as more consumers are attracted to BNPL solutions.
One of Affirm’s standout strengths lies in its cutting-edge technology, which aids in product pricing and risk assessment. AFRM’s customer-centric approach includes transparent, simple interest-rate-based payment plans, devoid of hidden fees or late payment charges. Customers benefit from a clear breakdown of their financial obligations, alleviating any unnecessary burdens.
Affirm is poised for expansion through collaborations with global industry giants, including Amazon and Fidelity National Information Services. These partnerships will empower consumers with access to BNPL options, fueling growth in the merchant sector. AFRM’s revenue will receive a boost from commissions charged to businesses, promising a robust top-line performance in the future.
The Zacks Consensus Estimate for AFRM’s fiscal 2024 revenues currently stands at $2.4 billion, signaling a notable 21% year-over-year growth trajectory. This upward trend positions the company favorably on its path to profitability. While the company is yet to achieve operating profitability in the upcoming quarters, innovative offerings like the Debit+ Card and strategic partnerships are expected to bring it closer to its objectives.
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