Affirm (AFRM) and Afterpay (AFTPY) are two players in the buy now, pay later segment. The companies are part of a rapidly expanding addressable market that is allowing them to grow revenue and earnings at a fast clip. But which of the two is the better stock in which to invest at current prices? Read on to learn the answer.Over the last few years, companies have tried to revolutionize the way consumers shop. While credit cards have facilitated consumers’ ability to purchase products with debt, several entities have launched affordable payment services via the Buy Now, Pay Later, or BNPL model. The COVID-19 pandemic has accelerated the adoption of BNPL services, in-part because these arrangements can allow customers to purchase more or costlier items than they could otherwise and can also ease the costs of smaller ticket items.
A report published by Allied Market Research estimates the global BNPL market will hit $3.98 trillion by 2030, up from $90.69 billion in 2020, indicating an annual growth rate of 45.7% over this period.
Given the rapid growth in the BNPL space, let’s evaluate which company, Affirm (AFRM) or Afterpay (AFTPY), is the better stock to buy right now.