Affirm Holdings (AFRM) - Get Free Report extended gains Wednesday following a report that iPhone maker Apple (AAPL) - Get Free Report plans to partner with Affirm’s Canadian PayBright unit to launch a “buy now, pay later” program for Apple device purchases in Canada.
Shares of Affirm were up around 3% after Bloomberg reported that Apple will work with PayBright, a Canadian company acquired by Affirm, on an installment option that will let people pay for devices like iPhones over 12 to 24 months.
“Some customers visiting Apple want to buy now and pay later,” Apple reportedly told staff in Canada. “Now, they have a new option that lets them pay over time for their favorite Apple products.”
The offering will be interest-free for a limited time after it launches on Aug. 11, the report said.
The deal reinforces Apple’s long-standing ambitions to become more integrated in financial services. Apple has offered a buy now, pay later system for purchases via its Apple Card credit card with Goldman Sachs in the U.S. since last year, but the card isn’t available internationally.
An arrangement with PayBright would mark Apple’s first installment program in Canada in several years. Apple has also long offered monthly iPhone payment plans in some countries.
Affirm's stock has risen more than 10% so far this week following Square’s (SQ) - Get Free Report announcement that it plans to acquire BNPL rival Afterpay for $29 billion. That deal is expected to close in early 2022.
TheStreet's Jim Cramer told Action Alerts PLUS senior analyst Jeff Marks on Monday that he likes Square, but that PayPal (PYPL) - Get Free Report in his view is a superior company, and the upward move in Square could be an opportunity to take some gains off the table.
At last check, shares of Affirm were up 1.42% at $67.62. Shares of Apple were down 0.52% at $146.60, while shares of Square were down 0.37% at $268.48. PayPal stock was down 1.72% at $265.44.