SAN FRANCISCO — Affirm, which lets customers buy now and pay later at various retailers, announced its flexible payment solution will soon be available to Amazon.com customers at checkout. News of the deal was announced after the market closed on Friday and sent shares of Affirm soaring 35% in after-hours trading.
Amazon and Affirm are testing with select customers now, and in the coming months, Amazon plans to make Affirm more broadly available to its customers.
Amazon is the leading Internet retailer with $67.5 billion in net sales in North America in its latest quarter.
As a result of Amazon and Affirm’s partnership, select Amazon customers now have the option to split the total cost of purchases of $50 or more into simple monthly payments by using Affirm. Approved customers are shown the total cost of their purchase upfront and will never pay more than what they agree to at checkout. As always, when choosing Affirm, consumers will not be charged any late or hidden fees.
The Affirm service will not be available on Amazon Fresh grocery orders or at Whole Foods stores, an Amazon subsidiary.
“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, Senior Vice President of Sales at Affirm. “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”
Affirm also has pay-later deals with Walmart and Shopify. The company went public in January at $49 per share.
The company was founded by CEO Max Levchin, who was also one of the founders of PayPal.
