Target store Jessica Rinaldi/Reuters
After Target introduced the Buy Now, Pay Later service as a payment option, Affirm stock surged Wednesday.
Target's online shoppers have the option to use Affirm when they purchase more than $100
Amazon.com recently added Affirm to its payments roster.
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Affirm Holdings shares surged Wednesday after Target announced that some of its customers will be able use the company’s buy-now-pay-later service.
The share gained 19% to trade at $132.50, then the increase was reduced to 15%. The session saw heavy trading, with more than 33,000,000 shares being traded, compared to the 8.4 million shares average. Since January's debut, Affirm stock has increased by more than twofold.
Target stated that online customers could use Affirm monthly to pay for large-ticket purchases exceeding $100. The website directed customers to apply online to Affirm. However, approval is subject to credit checks. Customers can choose Affirm on Target's website as a payment option and select a monthly payment plan if they are approved.
Gemma Kubat (target's president of financial services and retail) stated in a statement that "We know our customers want simple and affordable payment options that fit within their family budget."
Target's website featured an option to use Affirm on Wednesday. Target stated that Affirm does not charge hidden or late fees.
Late September saw Amazon.com announce a partnership with Affirm in order to offer customers installed payments. This move sent Affirm's stock skyrocketing.
Klarna and Afterpay are two of the most popular players in this space, while PayPal and Apple Pay offer installment plans.
Target shares fell 0.6% to $226.20 just after 3 p.m. Eastern Wednesday.
