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Affirm Stock Rises on Accord to Serve American Airlines Customers

Approved American Airlines customers can use Affirm to split the total cost of flights over $50 into monthly payments.
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Affirm  (AFRM) - Get Affirm Holdings Report shares rose Wednesday, after the buy now, pay later platform agreed to provide that service for American Airlines  (AAL) - Get American Airlines Group, Inc. Report customers.

“By selecting Affirm at checkout, approved American Airlines customers can split the total cost of flights over $50 into monthly payments,” Affirm said.

“Consumers are shown the total cost of their purchase and will never pay more than they agree to upfront. Affirm also never charges consumers any late or hidden fees, and any interest is represented in a dollar amount and never increases.

“Select customers will now see Affirm as a payment option for eligible airfare at checkout on aa.com, and Affirm will be more broadly available to U.S. customers in the coming weeks.”

Affirm closed at $151.14, down 0.5%. It has skyrocketed 99% in the past six months, as investors have gone gaga over the buy now, pay later trend. Young consumers are said to be particularly enamored with that payment option.

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American closed at $19.03, down 1.9% on Wednesday.

Affirm said it has more than 29,000 merchant partners, including Target  (TGT) - Get Target Corporation Report and Walmart  (WMT) - Get Walmart Inc. Report.

Last month, Mizuho raised its price target for Affirm, while Morgan Stanley approved of Affirm’s new Adaptive Checkout offering.

Mizuho analyst Dan Dolev lifted his price target on Affirm to $150 from $110, while affirming a buy rating on the shares, according to the Fly. He was enthusiastic about company's "top-of-wallet, primary transacting" Debit+ card.

Meanwhile, Morgan Stanley analyst James Faucette said he was encouraged by the initial results of Adaptive Checkout’s capability. This enables merchants to give consumers greater installment payment choices at checkout.