Buy Now, Pay Later Industry Thrives
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: Fool
- Rapid Market Growth: Stock prices from the afternoon of May 16, 2026, indicate a strong upward trend in the buy now, pay later industry, reflecting a sustained increase in consumer demand for flexible payment options, which is boosting the overall market capitalization.
- Increased Investor Confidence: The widespread adoption of buy now, pay later services has significantly bolstered investor confidence in related companies, leading to a rapid increase in stock prices and reflecting optimistic market expectations for future growth potential.
- Changing Consumer Behavior: A growing number of consumers are opting for buy now, pay later options for large purchases, which not only transforms traditional shopping habits but also drives sales growth for retailers, further propelling industry expansion.
- Innovation-Driven Growth: Continuous technological innovations within the industry, including the launch of new payment platforms and applications, are making buy now, pay later services more convenient and enhancing user experience, thereby attracting more consumers to participate.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AFRM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise
22 Analyst Rating
17 Buy
5 Hold
0 Sell
Strong Buy
Current: 73.000
Low
65.00
Averages
87.72
High
107.00
Current: 73.000
Low
65.00
Averages
87.72
High
107.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers' preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Royal Caribbean Partners with Affirm for Flexible Cruise Payments
- Flexible Payment Options: Royal Caribbean's partnership with payment network Affirm allows UK and Canadian holidaymakers to spread cruise costs over time without compounding interest or late fees, enhancing customer payment flexibility and travel experience.
- Market Demand Response: With the summer holiday season approaching, this new policy provides customers with more choices, addressing their needs for family vacations and dream Caribbean getaways, which is expected to drive an increase in bookings.
- Successful Partnership Continuation: This collaboration builds on the successful partnership between Affirm and Royal Caribbean in the U.S., demonstrating a shared goal of enhancing customer experience and payment transparency, further solidifying market positions.
- Travel Spending Growth: As of March 31, 2026, travel purchases on Affirm's network grew by 29% year-over-year, indicating that transparent and flexible payment options are helping more consumers realize their travel plans, thereby enhancing brand appeal and market competitiveness.
See More
Klarna's Stock Plummets Post-IPO Amid Market Concerns
- Poor IPO Performance: Klarna's stock has plummeted 62% from its first-day closing price last September, indicating investor concerns about its future growth, although the current lower price may attract buyers.
- Strong User Growth: With over 119 million active consumers across 26 countries and processing 3.4 million transactions daily, Klarna maintains its leadership in the buy now, pay later market, despite risks associated with declining consumer spending.
- Improved Financials: In the first quarter, Klarna's revenue surged 44% year-over-year, with adjusted operating income rising from $3 million to $68 million, and net income flipping from a $99 million loss to a $1 million profit, showcasing significant progress in diversifying revenue streams.
- Market Share Gains: By forging new partnerships with JPMorgan and Worldpay, Klarna is capturing market share from competitors like Affirm and PayPal, further solidifying its position in the rapidly growing BNPL sector.
See More
Klarna Reports Strong Q1 Growth Amid Product Diversification
- Product Diversification: Klarna has successfully expanded its market reach by launching new products and partnering with JPMorgan Payments and Worldpay, with its Fair Financing product's GMV increasing by 138% year-over-year in Q1, indicating strong market demand and profit potential.
- Significant User Growth: With over 119 million active consumers across 26 countries and processing more than 3.4 million transactions daily, Klarna solidifies its leadership position in the buy now, pay later market, further enhancing its market share.
- Improved Profitability: Despite being unprofitable since its IPO, Klarna reported a net profit in Q1, reflecting the resilience of its business model, particularly as consumer spending faces pressure, showcasing the necessity and appeal of its products.
- Competitive Market Advantage: Klarna's price-to-sales ratio is lower than that of its competitors, especially compared to PayPal, enhancing its competitiveness in the buy now, pay later sector; although its stock is down 48% year-to-date, its diversification strategy lays a solid foundation for future growth.
See More
Alphabet's Cloud Business Soars, AI Strategy Draws Attention
- Cloud Business Growth: Google Cloud grew 63% year-over-year in Q1, outpacing Azure and AWS, with a backlog of $462 billion, half of which is expected to be recognized in the next 24 months, indicating strong market demand and client trust.
- Surge in AI Product Revenue: Revenue from generative AI products surged approximately 800% year-over-year, with CEO Sundar Pichai highlighting faster customer acquisition and deeper relationships with existing clients as key growth drivers, showcasing Google's competitive edge in AI.
- TPU Sales Outlook: Google plans to start delivering its custom AI chips to external customers in the second half of 2026, which could significantly enhance the company's profitability, although investors are still focused on details regarding sales models and margins.
- Relationship with Anthropic: Google's ties with AI startup Anthropic are under scrutiny, as the reported $200 billion cloud commitment could represent a major portion of Google's future cloud revenue, reflecting the company's strategic positioning in AI infrastructure.
See More
Google I/O Focuses on AI Strategy and Innovations
- AI Ecosystem Update: The anticipated launch of the Gemini 4 model is a focal point, with analysts suggesting a more likely update to Gemini 3.2 or 3.5, which could significantly impact Google's competitiveness in the generative AI market against OpenAI and Anthropic.
- Cloud Business Surge: Google Cloud reported a 63% year-over-year growth in Q1, with a backlog of $462 billion, half of which is expected to be recognized in the next 24 months, indicating strong performance that will support future growth.
- Shift in AI Advertising Model: AI-enabled campaigns now account for over 30% of search spending, and while AI Mode searches show a 15% decline in outbound clicks, Google is exploring new ad products to monetize more complex queries effectively.
- TPU Sales Outlook: Google plans to start delivering its custom AI chips, TPUs, to external customers in the second half of 2026, presenting a potentially lucrative new revenue stream, although investors remain uncertain about the specifics of this model and its market impact.
See More
Buy Now, Pay Later Industry Thrives
- Rapid Market Growth: Stock prices from the afternoon of May 16, 2026, indicate a strong upward trend in the buy now, pay later industry, reflecting a sustained increase in consumer demand for flexible payment options, which is boosting the overall market capitalization.
- Increased Investor Confidence: The widespread adoption of buy now, pay later services has significantly bolstered investor confidence in related companies, leading to a rapid increase in stock prices and reflecting optimistic market expectations for future growth potential.
- Changing Consumer Behavior: A growing number of consumers are opting for buy now, pay later options for large purchases, which not only transforms traditional shopping habits but also drives sales growth for retailers, further propelling industry expansion.
- Innovation-Driven Growth: Continuous technological innovations within the industry, including the launch of new payment platforms and applications, are making buy now, pay later services more convenient and enhancing user experience, thereby attracting more consumers to participate.
See More
Royal Caribbean Partners with Affirm for Flexible Cruise Payments
- Flexible Payment Options: Royal Caribbean's partnership with payment network Affirm allows UK and Canadian holidaymakers to spread cruise costs over time without compounding interest or late fees, enhancing customer payment flexibility and travel experience.
- Market Demand Response: With the summer holiday season approaching, this new policy provides customers with more choices, addressing their needs for family vacations and dream Caribbean getaways, which is expected to drive an increase in bookings.
- Successful Partnership Continuation: This collaboration builds on the successful partnership between Affirm and Royal Caribbean in the U.S., demonstrating a shared goal of enhancing customer experience and payment transparency, further solidifying market positions.
- Travel Spending Growth: As of March 31, 2026, travel purchases on Affirm's network grew by 29% year-over-year, indicating that transparent and flexible payment options are helping more consumers realize their travel plans, thereby enhancing brand appeal and market competitiveness.
See More
Klarna's Stock Plummets Post-IPO Amid Market Concerns
- Poor IPO Performance: Klarna's stock has plummeted 62% from its first-day closing price last September, indicating investor concerns about its future growth, although the current lower price may attract buyers.
- Strong User Growth: With over 119 million active consumers across 26 countries and processing 3.4 million transactions daily, Klarna maintains its leadership in the buy now, pay later market, despite risks associated with declining consumer spending.
- Improved Financials: In the first quarter, Klarna's revenue surged 44% year-over-year, with adjusted operating income rising from $3 million to $68 million, and net income flipping from a $99 million loss to a $1 million profit, showcasing significant progress in diversifying revenue streams.
- Market Share Gains: By forging new partnerships with JPMorgan and Worldpay, Klarna is capturing market share from competitors like Affirm and PayPal, further solidifying its position in the rapidly growing BNPL sector.
See More
Klarna Reports Strong Q1 Growth Amid Product Diversification
- Product Diversification: Klarna has successfully expanded its market reach by launching new products and partnering with JPMorgan Payments and Worldpay, with its Fair Financing product's GMV increasing by 138% year-over-year in Q1, indicating strong market demand and profit potential.
- Significant User Growth: With over 119 million active consumers across 26 countries and processing more than 3.4 million transactions daily, Klarna solidifies its leadership position in the buy now, pay later market, further enhancing its market share.
- Improved Profitability: Despite being unprofitable since its IPO, Klarna reported a net profit in Q1, reflecting the resilience of its business model, particularly as consumer spending faces pressure, showcasing the necessity and appeal of its products.
- Competitive Market Advantage: Klarna's price-to-sales ratio is lower than that of its competitors, especially compared to PayPal, enhancing its competitiveness in the buy now, pay later sector; although its stock is down 48% year-to-date, its diversification strategy lays a solid foundation for future growth.
See More
Alphabet's Cloud Business Soars, AI Strategy Draws Attention
- Cloud Business Growth: Google Cloud grew 63% year-over-year in Q1, outpacing Azure and AWS, with a backlog of $462 billion, half of which is expected to be recognized in the next 24 months, indicating strong market demand and client trust.
- Surge in AI Product Revenue: Revenue from generative AI products surged approximately 800% year-over-year, with CEO Sundar Pichai highlighting faster customer acquisition and deeper relationships with existing clients as key growth drivers, showcasing Google's competitive edge in AI.
- TPU Sales Outlook: Google plans to start delivering its custom AI chips to external customers in the second half of 2026, which could significantly enhance the company's profitability, although investors are still focused on details regarding sales models and margins.
- Relationship with Anthropic: Google's ties with AI startup Anthropic are under scrutiny, as the reported $200 billion cloud commitment could represent a major portion of Google's future cloud revenue, reflecting the company's strategic positioning in AI infrastructure.
See More
Google I/O Focuses on AI Strategy and Innovations
- AI Ecosystem Update: The anticipated launch of the Gemini 4 model is a focal point, with analysts suggesting a more likely update to Gemini 3.2 or 3.5, which could significantly impact Google's competitiveness in the generative AI market against OpenAI and Anthropic.
- Cloud Business Surge: Google Cloud reported a 63% year-over-year growth in Q1, with a backlog of $462 billion, half of which is expected to be recognized in the next 24 months, indicating strong performance that will support future growth.
- Shift in AI Advertising Model: AI-enabled campaigns now account for over 30% of search spending, and while AI Mode searches show a 15% decline in outbound clicks, Google is exploring new ad products to monetize more complex queries effectively.
- TPU Sales Outlook: Google plans to start delivering its custom AI chips, TPUs, to external customers in the second half of 2026, presenting a potentially lucrative new revenue stream, although investors remain uncertain about the specifics of this model and its market impact.
See More
Buy Now, Pay Later Industry Thrives
- Rapid Market Growth: Stock prices from the afternoon of May 16, 2026, indicate a strong upward trend in the buy now, pay later industry, reflecting a sustained increase in consumer demand for flexible payment options, which is boosting the overall market capitalization.
- Increased Investor Confidence: The widespread adoption of buy now, pay later services has significantly bolstered investor confidence in related companies, leading to a rapid increase in stock prices and reflecting optimistic market expectations for future growth potential.
- Changing Consumer Behavior: A growing number of consumers are opting for buy now, pay later options for large purchases, which not only transforms traditional shopping habits but also drives sales growth for retailers, further propelling industry expansion.
- Innovation-Driven Growth: Continuous technological innovations within the industry, including the launch of new payment platforms and applications, are making buy now, pay later services more convenient and enhancing user experience, thereby attracting more consumers to participate.
See More
