Buy Now, Pay Later purchasing models are taking off, and a new partnership between Amazon and Affirm is showing there’s plenty of demand.
Shares of Affirm surged 43% last Friday after the company teamed up with retail giant Amazon to offer a “Buy Now, Pay Later” service to some of its customers.
Affirm’s partnership with Amazon will allow certain Amazon customers to split the total cost of transactions of $50 or more into monthly payments with Affirm’s BNPL service.
The “Buy Now, Pay Later” service, seen as an alternative to credit cards, became increasingly popular during the pandemic as consumers looked for options that make transactions easier on their wallets.
Many technology companies are now tapping into the market. Twitter CEO Jack Dorsey’s Square Inc has agreed to buy Australian BNPL pioneer Afterpay Ltd for $29 billion.
Other technology companies, including Apple and Goldman Sachs, are also preparing to introduce their version of the service soon.
For more information, read the original story in Reuters.