Affirm soars 20% with Target adding the buy-now, pay-later service as an option for customers

• Affirm jumped 20% Wednesday after Target added the buy-now, pay-later service as a payment option.
• Target's online shoppers can use Affirm for purchases of more than $100.
• Affirm was recently added to Amazon.com's payments roster.

Affirm Holdings stock surged Wednesday after retail heavyweight Target said its shoppers will be able to use the company's buy-now, pay-later service for some of their purchases.

Shares closed up by 20% at $133.70, its strongest finish since early February. Trading was heavy, with more than 52 million shares exchanged outstripping the average volume of 8.4 million shares. Affirm stock has more than doubled since debuting in January.

Target said online customers could use Affirm to pay monthly for big-ticket purchases of more than $100. It directed people to apply online with Affirm, which says approval is subject to credit checks. If approved, customers can pick Affirm as a payment option on Target's website and choose a monthly payment schedule.

"We know our guests want easy and affordable payment options that work within their family's budget," Gemma Kubat, Target's president of financial and retail services, said in a statement.

An option to use Affirm appeared on Target's website on Wednesday. Target said Affirm doesn't charge late or hidden fees.

In late September, Amazon.com said it was partnering with Affirm to offer installed payments to customers, a move that sent Affirm's stock soaring.

The buy-now, pay-later model is growing in popularity, with privately held Klarna and Afterpay among players in the space while PayPal and Apple Pay have added installment plans to their payment methods.

Target shares closed down by 0.3% on Wednesday at $226.83.