Affirm Holdings, Inc. (AFRM) saw its stock price surge 5.01% in pre-market trading, as investors reacted positively to news of President Trump's proposal to cap credit-card interest rates at 10%.

The proposal, which could make traditional credit cards less attractive, is seen as a potential boon for buy-now-pay-later (BNPL) operators like Affirm. Analysts suggest that BNPL services could gain market share if credit-card companies are forced to tighten lending standards under the proposed cap. Raymond James policy analysts highlighted Affirm as a potential beneficiary of the policy shift, noting that alternative financial-services companies could see increased demand if the cap is implemented.

While the proposal's implementation remains uncertain, the market has responded optimistically to the potential upside for Affirm and other BNPL providers.