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Mizuho: Apple Pay users favor Affirm, survey shows

Published 13-06-2024, 07:52 pm
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A survey by Mizuho reveals that Affirm Holdings (NASDAQ:AFRM) is the preferred Buy-Now, Pay-Later (BNPL) service among Apple (NASDAQ:AAPL) Pay users, potentially providing insights into Apple's recent partnership with the company.

"The survey shows that Affirm is the most popular BNPL service amongst Apple Pay users, with 44% of respondents using AFRM," says Mizuho. The survey included over 550 participants, with roughly 20% identified as both Apple Pay and BNPL users.

Mizuho highlights the strong overlap between Affirm users and Apple Pay Later users, suggesting a potential driver behind the recently announced partnership. This collaboration will allow Apple Pay users to leverage Affirm for online purchases, with in-store functionality expected in the future.

"This overlap between AFRM & Apple Pay users might shed light on the driver of this week's announced partnership," says Mizuho. While they acknowledge their initial belief that Affirm's superior technology and underwriting were key factors in the partnership, the survey results suggest a strong user base fit as well.

Further supporting the partnership, Mizuho found that Apple Pay Later users have the highest crossover rate with Affirm users compared to other BNPL providers. This suggests a potential for a smooth transition between the Affirm app and Apple Pay Later.

"This may indicate the potential for a seamless transition from the AFRM app to Apple Pay Later," says Mizuho. They believe this could lead to increased conversion for Affirm over time, as users can now pay via Apple Pay at merchants not directly integrated with Affirm.

Mizuho maintains a Buy rating for Affirm and a price target of $65, viewing the Apple partnership as a positive development for the company.

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