FinTech: BNPL Tie-Ups Are The Flavor Of The Season – Affirm Shares Flare 20% After Target Deal

October 7, 2021 | FinTech, News
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Target has tied up with Affirm and Sezzle to offer their buy-now-pay-later (BNPL) products to its customers.

USA Today broke the story Wednesday that Target Corporation (NYSE: TGT) is offering its shoppers instalment payment (BNPL) options from Affirm (NYSE: AFRM) and Sezzle (ASX: SZL) ahead of the holiday season.

“Through our partnerships with Sezzle and Affirm, we’re offering guests additional flexible payment options that meet even more of their needs no matter how they choose to shop,” Gemma Kubat, Target’s president of financial and retail services, told USA TODAY.

Target becomes the latest retailer to woo younger shoppers who are increasingly finding these instalment payment schemes more attractive compared to credit cards. Besides, many of these shoppers do not qualify for credit cards.

Previously, Affirm struck BNPL partnerships with Amazon (NASDAQ: AMZN), Shopify (NASDAQ: SHOP), and Walmart (NYSE: WMT).

Shares of Affirm bolted higher Wednesday on the news of the Target deal, closing at $133.70, up a solid 19.95%.

Klarna – Simon Property Group

Separately, news broke that BNPL platform Klarna had formed a national alliance and multi-year partnership with Simon Property Group (NYSE: SPG) for in-store options to shoppers to pay in instalments.

“Identifying ways that support the success of our merchants while elevating the customer shopping experience are key priorities for Simon,” Simon Property Group Chairman, CEO and President David Simon said in a statement.

“By aligning with Klarna, we’re giving our retail tenants an important advantage this holiday season and well into the future: a unique way to attract new audiences already embracing the convenience that Klarna’s interest-free payment options provide,” he said.

Last month, Klarna announced a partnership with event tickets platform Vivid Seats to offer a flexible payment facility at checkout to fans buying tickets. The companies are looking forward to a revival in demand for tickets to live, in-person sporting, concert, and entertainment events.

Related Story: The Klarna-Vivid Seats Tie-Up To Offer Event Tickets On ‘Pay Later’ Basis

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