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Afterpay to start Buy Now, Pay later subscription service; Affirm shares drop

$Affirm Holdings (AFRM.US)$ shares slip 1.9% in premarket trading after rival $AFTERPAY LTD SPONS ADS ECH REP 1 ORD SHS (AFTPY.US)$ introduces a Buy Now, Pay Later subscription service in the U.S.
Afterpay stock gains 0.9%.
Merchants, including Fabletics, IPSY, BoxyCharm, and Savage X Fenty, will be among the first to offer consumers the option to pay for recurring purchases in installments starting early next year.
The new service allows qualified merchant partners to potentially offer Afterpay for everyday payment needs including gym memberships, entertainment subscriptions, online services and more.
The subscriptions will be available to consumers across online platforms in the U.S. and Australia by early 2022, with plans to extend the feature in-store and to other regions including Canada, New Zealand, the U.K., and Europe.
$PayPal (PYPL.US)$, which also has a BNPL service, drops 0.7% in premarket trading.
In August, $Block (SQ.US)$ agreed to buy Afterpay for ~$29B in stock.
Afterpay to start Buy Now, Pay later subscription service; Affirm shares drop
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