Amazon signs new ‘Buy now, Pay later’ partnership with Affirm

By Patrick Miller |

  • Affirm’s shares rose by 40% after it declared its partnership with Amazon.
  • The deal will help Amazon consumers to split buying costs over $50 into smaller chunks.

Following the precedent set by many companies in the e-commerce sector, Amazon is now moving forward to consolidate its position in the ‘buy now, pay later’ space. The company has inked a major partnership deal with platform provider Affirm to officially penetrate the delayed pay arena.

As per reports, shares of Affirm soared over 40% post its announcement of a deal with retail giant Amazon.

Sources familiar with the knowledge of the matter claim that the e-commerce company’s ‘pay-over-time’ option will be made operational at the time of checkout. This essentially enables consumers of Amazon to split the buying costs of USD 50 or more, into smaller installments on a monthly basis, spread over a longer time period.

An official statement by Affirm says that the total buying cost will always be displayed, and customers will not have to pay anything over the agreed amount. The company also went on to state that some of Amazon’s customer loans will come at 0% APR, short of late or hidden fees, while some others will bear a certain rate of interest.

Eric Morse, Senior Vice President, Affirm, has been quoted to state that this partnership with Amazon will help Affirm bring in predictability, transparency, and affordability to numerous people shopping on Amazon.com in the United States.

Of late, many e-commerce retailers have been adopting the buy-now-pay-later model, given its popularity among the younger consumers. This is because the younger demographic preferably wants to have flexible payment options and is consequently leaning more toward this method of credit as opposed to paying the entire cost upfront.

The growth graph of this model is on an exponential curve as numerous e-commerce firms are looking to establish partnerships and capitalize on pay-later companies, such as Klarna, Afterpay, and Affirm. As a matter of fact, Apple Pay and PayPal have also come up with similar installment plans for their payment methods.



Source Credits:

https://www.businessinsider.in/tech/news/amazon-will-let-you-buy-stuff-now-and-pay-for-it-later-through-a-new-partnership-with-affirm/articleshow/85704633.cms

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