- Fintech majorAffirm has entered into a partnership with Amazon to offer flexible payment solutions.
- The company is currently testing its flexible payment service with select customers of Amazon.
- Affirm will provide Amazon customers with an option to split the total cost of purchases of US$50 or more.
- Last month, rival firm Square agreed to acquire Australia’s largest BNPL firm Afterpay.
In a major development in the buy now, pay later (BNPL) space, US-based financial technology company Affirm Holdings (NASDAQ: AFRM) has teamed up with Amazon.com (NASDAQ: AMZN) to offer flexible payment solutions to certain customers of the e-commerce giant. The service will be initially provided to selected customers of Amazon in the United States.
Boosted by the development, shares of Affirm, which debuted on the NASDAQ in January this year, surged 35.61% to US$92.08 apiece in aftermarket hours trade on Friday.
The development came a month after Jack Dorsey's Square entered into an agreement to acquire Australia’s largest BNPL firm Afterpay (ASX: APT) for US$29 billion. The BNPL service, which is considered an alternative to credit cards, has become a hot space during the COVID-19 pandemic as consumers looked for options that make purchases easier on their wallets.
Here’s all you need to know about Affirm partnership with Amazon:
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The San Francisco-based payment solution company in an exchange filing on Friday said that it will soon provide flexible payment options to Amazon customers at checkout. As per the company, it is currently testing its flexible payment service with select customers of Amazon, while it will be broadly available in the coming months.
Under the flexible payment option, Affirm will provide online shoppers with an option to split the total cost of purchases of US$50 or more into simple monthly payments. The fintech major said that Amazon customers will be shown the total cost of their purchase upfront to avoid any confusion with fees or hidden costs later. The company also maintained that consumers will not be levied any late charge or hidden fees.
Commenting on the development, Eric Morse, Senior Vice President of Sales at Affirm, said, “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 US.”
“Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want,” Morse said.
Affirm, the nine-year-old company is a key player in the BNPL space in the US and its partners include Adidas, Shopify, Walmart, Peloton, Audi, Expedia and Neiman Marcus Inc..
Recently, it entered into a partnership with e-commerce giant Shopify (NYSE:SHOP) to integrate its technology in Shopify’s online merchant checkout process. It also inked a deal with the US-based security company GeoArm, allowing the latter to offer a BNPL option on its website for its do-it-yourself security customers.