Claims shares rise after partnership with Amazon

Claims shares rise after partnership with Amazon

An Amazon employee sorts the boxes before loading them onto trucks for shipment at the Amazon.com fulfillment center in Fernley, Nevada.

Ken James | Bloomberg | Getty Images

Affirm shares jumped more than 44% on Monday after the purchase, after the Pay Later platform announced a partnership with Amazon.

The partnership, which was made available to some Amazon users on Friday, will allow customers to split purchases of $ 50 or more into smaller installments. This is also Amazon’s first partnership with an installment reader, although the company already offers payout options on some items.

The deal was announced on Friday, after shares of Affirm rose 50% in after-hours trading. Bank of America analysts called the news “clearly positive”, but said it underscored “Affirm’s technical leadership and strong reputation in the BNPL market.” Analysts also maintained a buy rating on Affirm.

Amazon’s entry into buy now, pay later as demand for space continues to grow, especially among the younger generations who are turning to the BNPL platform instead of the traditional credit cards that often come with it. higher interest rates.

This month, Square announced it was entering space with its $ 29 billion purchase of Afterpay. Bloomberg News previously reported that Apple is also planning its partnership with Goldman Sachs.

Some of the biggest companies in the buy now, pay later space include Affirm, Afterpay, and Klarna. Most of them do not charge interest.

Some Amazon customers will bear interest on the purchase, CNBC previously reported. Current Affirm partners include Walmart and Peloton.

Amazon shares rose 2.5%.

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