Affirm is exploring subscription service

Affirm is exploring subscription service, Amazon introduces cashierless checkout for closing, and Payoneer extends partnership with Airbnb

Hi!

It’s been a brutal week in the markets. The Federal Reserve announced on Wednesday that it won’t be hiking rates this time, but indicated that the rates might be staying high for longer. Higher interest rates are not good for the present value of future cash flows. Anyway, let’s wrap up this week on a positive note:

• Affirm is exploring a subscription service,

• Amazon introduces cashierless checkout for closing, and

• Payoneer extends its partnership with Airbnb

Thank you for reading and have a great weekend!

Jevgenijs

Affirm is Exploring Subscription Service

Affirm (NASDAQ: AFRM) is considering introducing a subscription service called Affirm Plus, which would charge users $7.99 per month, according to Bloomberg. This service would guarantee a 0% APR on installment loans up to $2500 and potentially offer higher interest rates for Affirm savings accounts. While there's no certainty that this service will launch with all the features, it demonstrates Affirm's efforts to generate more revenue and attract users amid increasing competition in the Buy Now Pay Later and online savings markets. Affirm's CEO, Max Levchin, has indicated a desire to expand its Buy Now Pay Later offering to offset rising funding costs due to higher interest rates.

Image source: Affirm

In August, the company’s stock rallied after Affirm revealed its progress with the rollout of Affirm’s Card. Thus, the company reported that it had more than 300,000 active Affirm Card holders as of mid-August, with card transactions delivering similar gross profitability to the rest of Affirm’s business. Affirm’s Card, previously called Debit+, allows consumers to split an in-store payment in multiple installments using Affirm's pre-approved credit limit. Affirm card, primarily meant for in-store purchases, expands the company’s addressable market, as almost 85% of retail spend in the United States happens offline.

Affirm Card's potential powers stock rally

✔️ Affirm Is Exploring Subscription Service to Guarantee 0% APR on Purchases

Amazon Introduces Cashierless Checkout for Clothing

Amazon (NASDAQ: AMZN) is introducing a new cashierless checkout system that allows customers to purchase clothing without waiting in line. This updated version of their "Just Walk Out" system utilizes radio-frequency identification (RFID) technology, with each clothing item in the store featuring an RFID tag. When customers take items off the shelf and exit the store, RFID readers automatically charge their credit cards on file. Previously, Amazon's cashierless technology relied on ceiling-mounted cameras to track items. This expansion of the technology could see it used in a wider range of retail settings beyond just grocery and convenience stores, including supermarkets, airports, stadiums, and theme parks.

Earlier this year, the company announced expanding its Amazon One palm recognition technology to all 500+ Whole Foods Market stores in the U.S. Amazon One allows customers to use their palm for identification, payment, loyalty membership, and entry at various locations. The technology has reached a milestone with over 3 million uses and is now being integrated into Whole Foods Market stores, making it possible for customers to pay with a simple palm hover over an Amazon One device. Apart from Whole Foods, Amazon One is available at sports stadiums like Bridgestone Arena, Climate Pledge Arena, T-Mobile Center, T-Mobile Park, and NASCAR Raceway.

Amazon expands its palm payment technology to all Whole Foods stores

✔️ Amazon will now allow cashierless checkout for clothing

Payoneer Expands Partnership with Airbnb

Payoneer (NASDAQ: PAYO) and Airbnb (NASDAQ: ABNB) have expanded their partnership, allowing Airbnb hosts in more countries to receive payments in their local currency. This partnership has been extended for another three years, with Payoneer serving as Airbnb's preferred global payment provider. “Payoneer has been a flexible and responsive provider supporting us with a resilient platform, expansive infrastructure, and extensive capabilities in emerging markets,” commented Sunny Walia, Head of Payments Partnerships and Economics at Airbnb. Payoneer, established in 2005, provides global payouts in over 190 countries.

Image source: Payoneer Investor Presentation

Earlier this year, Airbnb announced partnerships with Klarna and Stripe. Thus, the company partnered with Klarna to allow guests in the United States and Canada to pay for their stays in four interest-free installments. If the booking costs more than $500, guests in the US can apply to pay for it monthly. This option will be expanded to other countries later in the year. Airbnb also teamed up with Stripe to enable its guests to pay for stays with their bank accounts, as an alternative to using credit or debit cards. By securely adding their bank accounts as a payment method through Stripe, guests can make bank payments for all future reservations using Stripe’s one-click checkout feature.

Uber expands partnership with PayPal

✔️ Payoneer and Airbnb Expand Long-Term Relationship
✔️ Payoneer Lets More Airbnb Hosts Get Paid in Local Currencies

Block's Enterprise Value / Sales multiple has been declining since October 2018. The company’s multiple was declining even through the crazy 2020-2021 period, when multiples for other Fintech companies skyrocketed, fueled by zero interest rates, government stimulus, and retail trading.

• Lead Product Manager, Network Growth

  @ Affirm
  🇺🇸 Remote, United States

• Product Marketing Lead
  @ Affirm
  🇨🇦 Remote, Canada

• Head of Business Payments Acceptance, Amazon Business Payments
  @ Amazon
  🇺🇸 Seattle, WA, United States

• Payments Program Manager, Amazon Payment Products
  @ Amazon
  🇺🇸 Seattle, WA, United States

• Technical Product Lead, Build
  @ Shopify
  🇺🇸 Remote, Americas

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Cover image source: Affirm

Disclaimer: Information contained in this newsletter is intended for educational and informational purposes only and should not be considered financial advice. You should do your own research or seek professional advice before making any investment decisions.