Shares of Affirm Holdings (NASDAQ:AFRM) are up more than 5% on Tuesday after Apple (NASDAQ:AAPL) announced that the company's payment products are expected to be available to Apple Pay users in the United States later this year.
In a press release, Apple said users in the U.S. will be able to apply for loans directly through Affirm when they check out with Apple Pay.
In a filing, Affirm said the partnership will enable users checking out online or in-app with Apple Pay on iPhone and iPad to be able to apply to pay over time with Affirm.
However, "Affirm does not expect this partnership to have a material impact on revenue or gross merchandise volume in fiscal year 2025."
Reacting to the news, Mizuho analysts said the partnership "further solidifies Affirm's moat."
"The news is a big positive for AFRM, especially since the stock traded down several times in the past when Apple announced its entry into BNPL," said Mizuho. "The bottom-line - in our view - is that Affirm's strong brand and sophisticated underwriting technology have a moat that Apple likely could not replicate on its own."