Amazon, America’s largest e-commerce platform is entering into buy now, pay later space. The platform is opening a partnership with Affirm, which is an installment payment player. This company enables customers to pay for their purchases in installments.
Hence, Affirm’s buy now, pay later checkout option will be made available to certain Amazon customers in the U.S. and it starts Friday. This merger will allow Amazon customers to break purchases of $50 or more into smaller, monthly installments for items including furniture, home goods, electronics, and fashion. Once approved, customers will be able to see the total purchase price upfront — and they won’t be charged any late or hidden charges.
This service is still being tested with select customers currently as mentioned by Affirm and will be made available more broadly in the coming months. However, certain buys, including those from Whole Foods Market, Amazon Fresh, and certain digital purchases like books and movies will be not included or eligible.
“By partnering with Amazon, we’re bringing the transparency, predictability, and affordability that Affirm provides today to the millions of people who shop on Amazon.com in the U.S.,” Eric Morse, Senior Vice President of Sales at Affirm, said in a statement. “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.” “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want,” Morse added.
Affirm is one of the best-known installment options that work for more than 12,000 merchants, including Peloton and Walmart. The stock nearly became twice its offering price of $49 on its first day of trading and hit a peak of about $146 in February before tumbling back to Earth. Shares now trade around $96 following Monday’s pop. Affirm is now worth about $25 billion. Nevertheless, Amazon’s shares remain unchanged.