Amazon Partners With Affirm For Option To Buy First, Pay Later

Amazon Partners With Affirm For Option To Buy First, Pay Later

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Pavlo Gonchar | LightRocket via Getty Images

Amazon Buy Now, Pay Later.

The e-commerce giant is teaming up with Affirm for its first installment payment option on the popular e-commerce site.

The “Buy Now, Pay Later” payment option will be available to select Amazon customers in the United States starting Friday, with wider roll-out in the coming months, the companies said in a statement. The partnership will allow Amazon customers to split purchases of $ 50 or more into smaller monthly installments.

Affirm stock gained 15% after Friday news hours.

Friday’s partnership is the latest sign of a booming credit space as young consumers turn to these alternative lines of credit. Earlier in August, Square jumped into space with a $ 29 billion deal to buy Australian fintech Afterpay.

So-called installment loans have been around for decades and were historically used for large purchases such as furniture. Online payment players and fintechs are competing to launch their own “pay later” versions of products for items online for less than hundreds of dollars.

Affirm is one of the most well-known installment payment options. He works with over 12,000 merchants, including Peloton and Walmart.

The companies did not say whether the loans would carry interest.

“By partnering with Amazon, today we are bringing the transparency, predictability and affordability that Affirm offers to the millions of people who shop on in the United States,” said Eric Morse, senior vice president of Affirm sales, in a press release. . “Offering Affirm’s alternative to credit cards gives consumers more payment options and flexibility at Amazon. “



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