Online retail giant Amazon partners with buy now, pay later company Affirm to offer some online customers the option to pay for goods in installments. Affirm and Amazon are testing the new service and expect to make it available more broadly to the retailer’s customers.
Affirms stock surged on the news of the new partnership with Amazon, the largest U.S. e-commerce company.
Only certain Amazon customers making total purchases of at a minimum of $50 will be eligible to use the Affirm “pay-over-time” service, letting monthly installment payments agreeing to the terms upon checking out for an item. It’s reported they charge simple interest and not compound interest minus any fees. Yes, not fees of any type.
In a statement, Amazon confirmed the new tie and said: “Amazon is always looking to add flexible payment options and Affirm does just that by offering transparent pay-over-time solutions that customers can choose from based on their needs, with no late or hidden fees.”
Recently it was announced that it will add a surcharge to Visa credit card purchases in Singapore starting next month because of Visa’s “high cost of payments.” Amazon said that it might expand the surcharge for payments with Visa.
Square acquired Melbourne, Australia-based buy now-pay later company AfterPay for $29 billion. Square, looks to start its own banking services, agreed to buy AfterPay at about a 30% premium, as consumers look for new forms of credit.
Private lending is becoming increasingly popular amid private industry responsiveness, in expanding financial services, in lending services that can offer consumers lower costs option who might not have bank accounts or access to credit cards.
“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, Affirms senior vice president of sales said in the web post. “Offering Affirms alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”
Affirm Holdings, Inc. – Fourth Quarter 2021 Earnings Conference Call will take place September 9, 2021 at 5:00 PM EDT