Affirm Shares Explode on Amazon Partnership

Shares of Affirm were sailing higher on the news that the company has partnered up with e-commerce giant Amazon for buy now, pay later.

The company’s checkout option allowing consumers to pay later will become available to certain Amazon customers in the U.S.

The move started this past Friday and there will be a broader rollout in the months to come.

The partnership will let Amazon customers split purchases of $50 or more into smaller, monthly installments.

Shares of Affirm soared as much as 48% after-hours Friday on the news, adding more than $8 billion to its market capitalization.

Affirm is one of the best known installment payment options and works with over 12,000 merchants, including Peloton and Walmart.

Affirm said some of the Amazon customer loans will bear interest, but some will come with 0% APR. Other installment-type options are available on Amazon through credit cards.

“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.,” Eric Morse, Senior Vice President of Sales at Affirm, said in a statement.

“Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”

Analysts at Bank of America called the news an “unambiguous positive,” but said it highlights Affirm’s “technological leadership and strong reputation in the BNPL market.” The analysts reiterated a buy rating on Affirm.

Tech giant Apple is also reportedly considering a buy now, pay later option in partnership with Goldman Sachs.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.