Why Affirm's Stock Is Tumbling Today

Affirm Holdings Inc AFRM is trading lower Tuesday as traders circulate Mastercard Inc's MA "Buy Now, Pay Later" (BNPL) news.

Mastercard unveiled its own BNPL program called "Mastercard Installments," which will give consumers a flexible option to pay through interest-free installments.

"It enables banks, lenders, fintechs, and wallets to offer a variety of flexible installment options to consumers - including a zero percent interest, pay-in-four model – without onerous integration into the merchant infrastructure, allowing them to quickly offer secure and competitive BNPL experiences at scale," Mastercard stated.

Affirm offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. 

The company recently announced a partnership with Amazon.com Inc AMZN allowing customers to purchase items with an installment plan.

AFRM Price Action: Affirm has traded as high as $146.90 and as low as $46.50 over a 52-week period.

The stock was down 6.88% at $119.56 at time of publication.

Photo: Alina Kuptsova from Pixabay.