Companies that offer buy-it-now and pay-later services to consumers are grabbing a major deal in the market right now and could be the next big thing in fintech. If you’re not familiar with this new approach to consumer loans, it’s a form of short-term financing that helps consumers make purchases with a small down payment and wait to pay the rest of the balance at a later date. Buy now, pay later is becoming an increasingly popular way for people to buy, especially online, as often these plans do not charge interest and are much easier for consumers to obtain than the methods of traditional loan.
When you consider some of the financial constraints caused by the pandemic and the way the price of consumer goods has steadily increased, it is easy to see where the demand for this type of service is coming from. It can really pay off to notice a new trend as it develops, and chances are that buy now, pay later plans will become the default way for many consumers to manage. their transactions in the years to come. This all supports the notion of adding buy now, pay later stocks to your shopping list, which is why we’ve curated a list of some notable names below.
This stock is perhaps the biggest name in the buy now, pay later space right now, and has the makings of a true market-leading company, which means it absolutely should be on investors’ shopping lists in the future. Affirm Holdings provides a platform for digital and mobile commerce and uses a technology-driven payments network and originating bank partnerships to help customers take advantage of this growing payment method. Consumers can simply choose Affirm when they’re at the checkout point for online purchases, select the payment schedule that works best for them, and typically get approved in seconds for a short-term loan.
While Affirm stock has been on a hot streak since its IPO earlier this year, the stock is nearing its all-time high and is benefiting from a few catalysts right now. First, the company recently struck a deal with Amazon that will allow the e-commerce giant’s customers to choose To assert pay-at-cash service for purchases of $50 or more. That’s a big deal because it extends Affirm’s reach to the millions of Amazon shoppers who buy everything from groceries to high-end electronics online. The company also recently reported fourth quarter results that saw total revenue rise 71% to $261.8 million and provided an upbeat outlook, both of which could lift the stock price.
It makes a lot of sense that PayPal, which is one of the largest and most successful fintech companies today, would explore buy-it-now, pay-later services. The company offers a payment solution called “Pay in 4” which allows shoppers to purchase goods from millions of online stores and split their payments into 4. The service is interest free, supported by PayPal and has no no impact on buyers’ credit ratings. , making it a very attractive option for people using PayPal’s network. When you think about how many online merchants already support PayPal, this update could mean big things for a company that’s been profiting from the shift to digital payments for years.
The buy now, pay later solution is certainly an attractive reason to consider adding shares of this growth stock, but there are many other qualities that make it a great option for investors. PayPal’s total payment volume grew 40% in the second quarter to $311 billion in the second quarter, and the company’s Venmo app is also gaining momentum with consumers. There’s also a lot to like about how the company allows PayPal account holders to buy, hold, and sell cryptocurrencies with their accounts, and the recent stock price drop could present a great deal. buying opportunity for investors who were waiting for a pullback.
Adding shares of a blue-chip stock that is a leader in its sector down from the 200-day moving average can be a potentially masterful investment decision, which means Visa looks pretty attractive right now given how hard the stock has pulled back. The payments technology company connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments and deploys a buy now, pay later service that could really take off given the brand of trust of Visa.
The company has begun offering an installment payment option that allows its credit card issuer customers to develop and pilot buy now, pay later experiences for their customers. It’s clear that Visa recognizes the potential of this payment model, and it will certainly be interesting to see how the company can leverage this solution over time.