Affirm CEO Max Levchin on Thursday addressed the company’s box office partnership with Amazon and told CNBC’s Jim Cramer that he addressed the talks with the e-commerce giant just as everyone else does. negotiations.
“The way we do our business, not just with Amazon, but with all of our partners, we bring the same ethos to these conversations that we do with everything else with our consumers, with our younger partners,” he said. Levchin in an interview with “Mad Money.”
“We are an open book. We tell you exactly what we can do and what we can’t do. We tell you exactly what we feel right and wrong,” he continued. “We don’t have secret revenue streams. We don’t figure out ways to weave something into it later when people least expect it.”
Affirm announced about two weeks ago that it had reached an agreement to bring its purchase now and pay for subsequent services in Amazon’s massive online marketplace. Shares ’shares rose to 48% in expanded trading on Aug. 27, while investors rejoiced that Amazon selected the company as its first installment payment provider.
Affirm point-of-sale loans to Amazon customers in the U.S. will be available for purchases of $ 50 or more. Buyers pay it in smaller fixed monthly payments. Interest rates on Affirm loans range from 0% to 30%, but the company claims it does not charge late fees.
Levchin declined to address the financial impact Affirm hopes to feel from Amazon’s bond, saying it will “obviously” be included in the company’s future guidance when enough data is generated.
“All the conversations we had had, we made sure and we said,‘ That’s how our business works. We believe we can help each other, we collaborate, ”said Levchin, who previously co-founded PayPal before starting to claim in 2012“ Amazon is a company obsessed with the customer and so are we. These are the best possible deals when you are completely transparent with your partners. “
Shares of shares jumped on Thursday after hours after the company reported fourth-quarter tax results that exceeded Wall Street expectations. Revenue grew 71% in the quarter, to $ 261.8 million, better than the $ 225 million projected by analysts surveyed by Refinitiv.