Affirm Holdings, Inc. (NASDAQ: AFRM) saw its stock price surge 5.56% in intraday trading on Wednesday, following announcements of significant new partnerships with retail giants Costco and Mattress Firm. These collaborations are set to expand Affirm's reach in the pay-over-time market, potentially boosting the company's transaction volume and revenue.

In a multi-year deal, Affirm has been selected as Costco's pay-over-time provider for online purchases. Costco members will now be able to use Affirm's services at checkout, choosing from personalized monthly payment plans for shopping cart sizes ranging from $500 to $17,500. This partnership with one of the largest retailers in the United States represents a significant opportunity for Affirm to expand its customer base and increase its market share in the buy-now-pay-later sector.

Additionally, Affirm announced a partnership with Mattress Firm, the largest mattress specialty retailer in the U.S. This collaboration, coming just before Mattress Firm's Memorial Day sale, will allow customers to use Affirm's flexible payment options both online and in over 2,200 Mattress Firm locations nationwide. Shoppers can choose either biweekly or monthly payment plans, providing them with a transparent and convenient way to finance their purchases without any late or hidden fees. These strategic moves align with consumer trends towards flexible payment options, especially for big-ticket items, and suggest that Affirm could see increased adoption of its services in the near term.