Amazon has struck a deal with buy now pay later provider Affirm.


Amazon customers will soon have another payment option at checkout.

Affirm, a buy-now-pay-late payment provider that allows customers to pay for their purchases in installments, said Friday it has reached an agreement with the online retail giant.

Affirm said Amazon customers will be able to use its service on purchases of $50 or more, including items such as furniture, homeware, electronics and fashion, and pay in monthly instalments. Once approved by the company, customers will be able to preview the total purchase price and there will be no delays or hidden fees.

Affirm said the service is currently being tested with select customers and will be made more widely available to shoppers in the coming months. Certain purchases will not be eligible, including Whole Foods Market, Amazon Fresh, and certain digital purchases such as movies and books, according to Affirm.

“Amazon is always looking to add flexible payment options,” an Amazon spokesperson said. “Affirm does this by providing transparent, time-in-time payment solutions that customers can choose based on their needs.”

Buy now, pay later services have become an increasingly popular option among consumers. And the partnership follows another giant deal last month: Payments firm Square, led by Twitter CEO Jack Dorsey, agreed to the deal. Acquired Afterpay for $29 billion. This deal will offer installment options to millions of small businesses that make their credit card transactions through the Square app.

Affirm, whose shares soared more than 30 percent in after-hours trading, has partnered with 12,000 merchants, including Walmart and Peloton. According to an August research report by FT Partners, an investment banking firm focused on financial technology, Peloton accounted for 30 percent of the company’s total revenues in the first fiscal quarter of 2021. This was more than 14 percent in the same quarter of the previous year.

Amazon’s partnership with Affirm is the first buy now pay later provider in the United States; Works with zip Australia, these options are already more built-in. Amazon already paid monthly plan options stand-alone for select customers purchasing certain products. It also offered installment programs to customers. Amazon.com Store Card, NS Amazon Rewards Visa Card, and suitable Citi credit card members.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *