Customers of Amazon in the US will soon have the option to embrace ‘buy now, pay later’ services via a new partnership with Affirm.
Image source: Photo by Fabian Hurnaus from Pexels
Affirm, the US-based listed ‘buy now, pay later’ fintech has signed a deal with Amazon to offer its customers the option to spread interest free payments at checkout.
The share price of Affirm soared more than 50 per cent on the news, which broke last week.
Purchases of $50 will qualify under the partnership which is currently being tested among a smaller circle of customers ahead of a wider rollout.
“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.,” said Eric Morse, Senior Vice President of Sales at Affirm.
“Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want” he added.
Affirm, like other BNPL providers seeks direct merchant relationships in a bid to cut out credit cards and other point of sale financing. Its best-known partnership is with Peloton, which accounts for 30 per cent of its revenues but it also counts Walmart as an important partner too.
The BNPL market is booming. In 2021 Klarna, one of the leading European providers has quickly gained traction in the US, with now four regular million monthly users and a private market valuation of $46bn.
Square meanwhile has pounced on Afterpay, another established BNPL provider in a $29bn deal for stock.