Amazon partners with Affirm for first purchase now, later payment option

Amazon is getting into the purchase now, pay back space.

The e-commerce giant is partnering with Affirm for its first installment payment option on the popular e-commerce site.

The statement buys now, the post-payment payment option will be available for some Amazon customers in the U.S. starting Friday, with a broader launch in the coming months, the companies said in a statement. The partnership will allow Amazon customers to split purchases of $ 50 or more into smaller monthly fees.

Shares of Shares rose to 21% Friday after hours on the news.

Friday’s partnership is the latest sign of the booming lending space as younger consumers move toward these alternative lines of credit. In early August, Square jumped into space with a $ 29 billion deal to buy Australian fintech Afterpay.

So-called term loans have been around for decades and were historically used to buy large bills, such as furniture. Online paid players and fintechs have been competing to launch their own version of “pay later” products for online items in the hundreds of dollars.

Affirm is one of the best known installment payment options. It works with more than 12,000 merchants, including Peloton and Walmart.

PayPal, Klarna, Mastercard and Fiserv, American Express, Citi and JP Morgan Chase offer similar loan products. Apple plans to launch installment loans in partnership with Goldman Sachs, Bloomberg reported last month.

Amazon and Affirm did not say whether these loans would come with interest.

“By partnering with Amazon, we bring the transparency, predictability, and affordability that Affirm provides to the millions of people who buy Amazon.com in the United States,” said Eric Morse, senior vice president of sales at Affirm, in a communiqué. . “Offering an Affirm alternative to credit cards also offers more payment options and flexibility that Amazon consumers want.”