Affirm stock jumped 3% Monday after President-elect Donald Trump proposed a one-year cap on credit card interest rates at 10%. The announcement, made on Truth Social, sent shockwaves through traditional financial institutions. Major banks and credit card lenders saw sharp declines in premarket trading, with Citigroup down 4% and Capital One falling 8%.

Analysts at Mizuho suggest the proposal could create major positive ramifications for buy-now-pay-later and personal loan providers. Companies like Upstart, SoFi, and PayPal also stand to benefit as consumers with lower credit scores seek alternatives to traditional cards. However, implementing such a cap would likely require new legislation, as the National Bank Act currently governs rates.

The market is now watching closely to see if this campaign promise gains legislative traction, potentially reshaping the consumer credit landscape.