Shares of Affirm Holdings (NASDAQ:AFRM) are falling after Apple (NASDAQ:AAPL) unveiled details of its upcoming buy now, pay later (BNPL) service yesterday. Affirm specializes in enabling BNPL transactions. In pre-market trading, AFRM stock was falling 3.5%.
Why AFRM Stock Is Falling Today
At Apple’s developers’ conference yesterday, the hardware giant announced that its customers will be able to pay for their purchases on Apple Pay in four equal installments over 42 days. As with Affirm’s “Pay in 4” offering, consumers who use Apple’s new service will not have to pay any interest or fees. Bloomberg had previously reported Apple was developing a BNPL service.
The buy now, pay later space is becoming increasingly crowded. Currently, Mastercard (NYSE:MA), PayPal (NASDAQ:PYPL), American Express (NYSE:AXP), JPMorgan (NYSE:JPM) and Citigroup (NYSE:C) also offer such an option as part of their services.
Despite its intense competition, Affirm reported on May 12 that its first-quarter revenue had jumped 54% year-over-year, slightly exceeding analysts’ average estimate. Additionally, the company reported that it expects to begin generating positive annual operating income, excluding some items, by July 1, 2023.
And in more positive news for AFRM stock, it was announced yesterday that the shares would be added to the Russell 3000 Index starting on June 27.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.