Will Affirm's Auto Move With Shopmonkey Fuel More Repeat Users?

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**Affirm Holdings, Inc.** AFRM has partnered with a cloud-based auto shop management platform, Shopmonkey, to become a default pay-over-time option for auto repair customers in the United States and Canada. This integration allows auto shops using Shopmonkey’s payment processing system to offer Affirm’s financing plans directly to their customers, who can now split repair costs into manageable biweekly or monthly payments, sometimes at 0% APR, with no hidden or late fees.This move is important because it gives Affirm access to a large network of small and mid-sized auto shops, helping it expand into a steady, high-need spending category: auto repairs. On average, car owners spend nearly $800 per year on maintenance, which is often an unplanned or urgent cost. By offering financing at the point of service, Affirm becomes more relevant to consumers and merchants alike.This partnership will likely boost Affirm’s transaction volume and customer base, strengthening its position in the growing buy now, pay later (“BNPL”) space. In the last reported quarter, its total transactions grew 45.6% year-over-year to 31.3 million, fueled largely by repeat users.The deal also enhances brand trust and visibility by aligning with a practical, recurring expense, not just big-ticket purchases. Affirm handled more than $33 billion in gross merchandise volume over the past year, as of the March-quarter end. This new partnership expands AFRM’s merchant network, which already exceeds 358,000 members.## The BNPL Race: How PayPal and Block Are Gaining Ground**PayPal Holdings Inc.** PYPL recently introduced a physical credit card tied to its “Pay Later” service, enabling in-store BNPL transactions anywhere Mastercard is accepted. BNPL users reportedly spend 33% more per transaction and complete 17% more transactions than average, prompting PayPal to pursue a global rollout this year, while continuing consumer awareness campaigns.Through its ownership of Afterpay, **Block, Inc.** XYZ continues expanding its footprint across regions, including the United States, Australia, Canada and Europe. Afterpay charges merchants for installment offerings and is growing rapidly with new partnerships and deals, reflecting Block’s strategy to deepen BNPL integration.## Affirm’s Price Performance, Valuation and EstimatesShares of Affirm have gained 8.8% year to date, underperforming the broader industry but outperforming the S&P 500 Index.## Affirm’s YTD Price Performance  Zacks Investment Research  Image Source: Zacks Investment ResearchFrom a valuation standpoint, Affirm trades at a forward price-to-sales ratio of 5.44X, down from the industry average of 5.80. AFRM carries a Value Score of F. Story Continues  Zacks Investment Research  Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Affirm’s fiscal 2025 earnings implies a 101.8% improvement year over year, followed by massive growth next year.  Zacks Investment Research  Image Source: Zacks Investment ResearchThe stock currently carries a Zacks Rank #3 (Hold). You can see **the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here****.**Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPayPal Holdings, Inc. (PYPL) : Free Stock Analysis ReportAffirm Holdings, Inc. (AFRM) : Free Stock Analysis ReportBlock, Inc. (XYZ) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment Research View Comments