Customers shopping on Amazon.com will be able to buy more products in monthly payments thanks to a new partnership with Affirm. The feature will be available for purchases of $50 or more. It’s rolling out to select customers now and more broadly in the coming months. It’s not clear if the installments come with interest.
Led by PayPal co-founder Max Levchin, Affirm offers an alternative to traditional credit cards. It makes money from more than 6,000 retailers such as Peloton, Purple, Walmart, and others when consumers use its technology to buy products in installments.
Affirm went public earlier this year. Its stock rocketed up 50% in after-hours trading Friday following the Amazon partnership announcement. The company reported $230.7 million in revenue in the third quarter, up 67% year-over-year, and an operating loss of $169.4 million, up from $81.5 million.
Amazon already offers a monthly payment option to certain U.S. customers on certain products sold and shipped by Amazon. The tech giant also offers its own credit cards.
Affirm, meet Amazon. The stock is soaring in extended trading after inking a deal with the e-commerce giant. We explore the ins and outs of the match-up. $AMZN $AFRM pic.twitter.com/dboNhAH7Vy
— CNBC's Fast Money (@CNBCFastMoney) August 27, 2021
