Why I initiated a position in AFFIRM
Hi Readers, I initiated a small position in Affirm Holdings (Ticker: AFRM) at USD$113. This is a small starter position which I initiated which allows me to dip my toes in the 'Buy Now Pay Later' trend. Below are some of the reasons why I began the position. 1. The rising trend of 'Buy Now Pay Later' and the possible disruption of existing credit card companies Credit card companies like Visa and Mastercard charge hefty fees with every transaction and Buy Now Pay Later companies like Affirm provide an alternative for consumers to split up their purchases to monthly payments with no interest (if they pay on time). In Affirm's latest quarter earnings , - Recorded revenue growth of 71% YOY - Gross Merchandise Value up 106% YOY - Active consumers grew 97% up to 7.1 Million YOY - Active merchants up 412% to 29,000 2. Huge Total Addressable Market (TAM) Based on the global payments report 2021, BNPL will grow 181%, from 1.6% of all e-commerce transactions i...