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Amazon partnership for buy now, pay later makes the affirm shares rise

Amazon is now taking its steps into the space of buying now and paying later. This Amazon partnership with Affirm for its installment payment option is big news now. It is a first-ever payment option outfit on the platform of this eCommerce giant.

The buy now pays sector checkout option of Affirm will be available in the US. It will have a broad rollout in the upcoming months, according to the statement of the company. This Amazon partnership with Affirm will let the customers split their purchases for $50. They can even split the amount into much smaller monthly installments.

The stock of Affirm hair spiked up to the level of 48% after hours on Friday. It has added $8 billion more to its market capitalization. Later it settled up around 33%. The shares of Amazon remained unchanged.

The Amazon partnership with Affirm on Friday is the latest sign that has caused a boom in its lending space. The younger consumers are moving towards these alternative lines for credit. Earlier in August, square made its jump to space with a deal worth $29 billion to purchase Australian fintech Afterpay.

These so-called installment loans have been around for decades. People used it historically for making big-ticket purchases.

Online payment players and the sectors of fintech are now indulging in a competition to upgrade their strategies. They are planning to launch their version of products with the option of ‘pay later.’ The payment options are specific to the items which are lower in price than the hundreds of dollars.

Affirm is famous as one of the best installment payment options. It has worked with more than 12000 merchants such as Walmart, Peloton. Companies like PayPal, Mastercard, Klarna, American Express, Fiserv, Citi, and J.P Morgan Chase are now also offering similar kinds of loans. Apple is also thinking of launching its partnership for installment lending with Goldman Sachs.

Affirm said the Amazon customer loans would bear interest, some of which will come with 0% APR.

“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 alternatives to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”

Alf Alferez

Author: Alf Alferez

Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org

Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org
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