11 Best Digital Payments Stocks to Buy According to Analysts

2. Affirm Holdings, Inc. (NASDAQ:AFRM)

Analysts’ Upside Potential as of April 9: 85.10%

Affirm Holdings, Inc. (NASDAQ:AFRM) provides a platform for digital and mobile-first commerce. It includes a consumer-facing point-of-sale payment solution, merchant commerce tools, and a consumer-focused app. The company produces revenue through merchant networks, virtual card networks, and other channels. Geographically, it generates more than half of its revenue from the United States. The business offers buy now, pay later services. As a prominent BNPL lender in the United States, it provides diverse lending alternatives. The company’s Affirm Card debit card offering also allows customers to pay in advance for certain transactions. The stock surged by more than 4% in the past year, making it among the Best Digital Money Stocks.

Affirm Holdings, Inc. (NASDAQ:AFRM) expanded globally in late 2024, beginning in the United Kingdom in November as its first market outside of the United States and Canada. The business went live in thousands of stores in October after partnering with Metro by T-Mobile and GoodRx to finance certain prescriptions. The business also collaborated with Sweetwater to strengthen its footprint in e-commerce and telesales. Active merchants climbed 21% to 337,000 as of December 31, 2024, while active customers surged 23% YoY to 21 million.

Goldman Sachs analyst Will Nance boosted Affirm Holdings, Inc. (NASDAQ:AFRM)’s price objective to $56 from $50 and maintained a Buy rating on the stock after the company filed an 8K filing stating that Walmart accounted for 5% of its gross merchandise volume and 2% of operational profits. In terms of incremental thoughts on the announcement, given the new facts, the firm believes the financial impact on the firm will be significantly less. According to Goldman, this is a result of Walmart’s past dealings with third-party credit providers. In general, it is believed that the low profitability of this portfolio reflects the challenges of underwriting Walmart’s lower-end clientele and the comparatively lower level of profitability that Walmart probably bargains with its suppliers.