Affirm Holdings, Inc. (NASDAQ:AFRM) has announced a partnership with Liberty Travel, a travel platform, to offer flexible payment options, including buy now, pay later (BNPL), for travel bookings. The collaboration allows Affirm to provide its payment solutions at the checkout for qualifying Liberty Travel customers, allowing them to divide the total cost of purchases over $250 into monthly payments.
This partnership comes at a time when the demand for flexible payment options in travel bookings is rapidly increasing. Affirm experienced a 60% year-over-year surge in travel and ticketing purchase volume in the September quarter. The addition of Liberty Travel to Affirm’s network of over 266,000 merchants, including names like Great Wolf Lodge, American Airlines, and CheapOair, is expected to boost sales, offer flexible payment options, increase average order value, and improve conversion rates.
Affirm’s research indicates that over 50% of people look for BNPL options when checking out. The partnership with Liberty Travel is designed to meet travelers’ demand for such payment solutions, especially as travel is expected to rise in the coming year. Affirm’s commitment to not charging late and hidden fees is anticipated to drive significant demand growth.
Partnerships like this contribute to Affirm’s goal of reaching profitability in fiscal 2024 on an adjusted operating income basis. The company aims for an adjusted operating margin of over 2% in fiscal 2024, reflecting a significant improvement from the negative 4.6% recorded in fiscal 2023.
Affirm’s shares have experienced strong growth over the past year, surging 362.9%, outperforming the industry’s rise of 24.2%.
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