FinTech: Amazon Customers To Get Affirm’s BNPL Solution At Checkout; Affirm Shares Spike 43%
Buy-Now-Pay-Later, the global payments phenomenon, is now coming to Amazon customers via fintech Affirm.
Affirm (NASDAQ: AFRM) announced it is partnering with Amazon (NASDAQ: AMZN) on a buy-now-pay-later (BNPL) solution, also known as a flexible payment facility, to be made available by Affirm to Amazon.com customers. BNPL has become highly popular across the globe, particularly after the pandemic, as customers sought payment solutions that were less expensive than credit cards. (CROWDFUND INSIDER)
Affirm’s Pay Over Time Services
Though the product is currently under testing with “select Amazon customers,” the intention is to make it “more broadly available” to the e-commerce giant’s customers soon.
Customers testing the Affirm solution can now break up the total cost of their Amazon purchases of $50 or more into simple monthly payment installments. Affirm does not charge any late or hidden fees; besides it is guaranteed that what they pay in total will never exceed the amount displayed at checkout and accepted by the customer.
“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, in a statement. “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”
BNPL space seeing hectic activity
Many analysts view BNPL as the ultimate credit card killer, but in any case, the pay-later product is being eyed globally by retailers as a must-have in their in-store and online sales channels.
Earlier this month, Jack Dorsey-led Square (NYSE: SQ) announced its acquisition of Australian fintech and buy-now-pay-later (BNPL) leader Afterpay (ASX: APT) for $29 billion in an all-stock deal.
A prime objective for Square in the deal is to integrate Afterpay’s BNPL service into its Seller and Cash App businesses.
Square said at the time that the Afterpay integration would “enable even the smallest of merchants to offer BNPL at checkout, give Afterpay consumers the ability to manage their installment payments directly in Cash App, and give Cash App customers the ability to discover merchants and BNPL offers directly within the app.”
Meanwhile, Affirm has also tied up with Adidas (ETR: ADS), Shopify (NYSE: SHOP), and Walmart (NYSE: WMT) for its BNPL services.
Affirm shares spiked 43% on Friday after the news of its BNPL partnership with Amazon.
Related Story: Square Plonks Down $29B For Aussie BNPL Giant Afterpay
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