Affirm Holdings partners with Booking's Agoda on hotel accommodations BNPL

Jun. 13, 2022 4:26 PM ETAffirm Holdings, Inc. (AFRM), BKNGAAL, PTONBy: Liz Kiesche, SA News Editor1 Comment

Buy Now Pay Later

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Affirm Holdings (NASDAQ:AFRM), the company that offers "Buy Now, Pay Later" financing, has teamed up with Agoda, part of Booking Holdings (NASDAQ:BKNG), to offer travelers to pay for their hotel accommodations over time.

Eligible travelers would be able to split the total cost of purchases into either biweekly or monthly payments for as low as 0% APR for bookings over $50, the companies said.

"The launch of pay-over-time options with Affirm will enable travelers in North America who might have previously found it inconvenient to pay for their booking in one lump sum to spread the costs over multiple payments without incurring any compound interest or additional costs," said Agoda Chief Financial Officer Thi-Mai-Linh Bui.

In addition to Agoda, Affirm (AFRM) retail partners in the travel space also include American Airlines (AAL), Vrbo, Priceline, and Vacasa. Affirm has been broadening its retail partners to reduce its reliance on Peloton (PTON). In the year ended June 30, 2021, Peloton accounted for 20% of Affirm's total revenue. By March 31, 2022, Peloton's share of Affirm's revenue fell to 8%.

Monday was a rough day for Affirm (AFRM) stock, as it dropped 12% during the regular trading session as investors fear that the U.S. recession may be heading toward a recession. In after-hours trading, the stock has gained 0.5%.

Last week, Rising rates, less consumer spending may cause pain for Buy Now, Pay Later space.

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