Benzinga | Sep 28, 2021 12:40PM EDT

Why Affirm's Stock Is Tumbling Today

Affirm Holdings Inc (NASDAQ:AFRM) is trading lower Tuesday as traders circulate Mastercard Inc's (NYSE: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 (NASDAQ: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.