A match made by cupid or satan? Last Friday, e-commerce (and impulse shopping) giant Amazon (AMZN) announced a partnership with “buy now, pay later” platform Affirm (AFRM). Amazon shoppers will soon be able to select a “pay-over-time” option at checkout for purchases of $50 or more.
Affirm is a San Francisco-based FinTech platform that offers flexible installment loans to online shoppers with no late payment fees. Affirm was founded in 2012 and went public on the Nasdaq back in January of this year.
Amazon isn’t the first major retailer to partner with Affirm. In 2019, Affirm scored a partnership with Walmart (WMT), where it began offering flexible installment payments to in-store and online customers.
why it matters
It's not hard to see the growth potential of the partnership for Affirm. After news of the partnership broke late last Friday, shares of AFRM soared by 40% in after hours trading.