Affirm (NASDAQ: AFRM) has received a significant boost as Amazon (NASDAQ:AMZN) one of the largest retailers in the world, has added this buy now pay later (BNPL) option to purchasers on the Amazon platform. Shareds in Affirm jumped following the news.
Omar Soudodi, director of Amazon Pay, said the addition makes sense as customers want flexible options:
“With Affirm on Amazon Pay, merchants can offer a pay-over-time option to their existing customers and have another way to reach new customers.”
By incorporating BNPL, merchants anticipate additional sales as flexibility makes a purchase more appealing for buyers. Affirm states that some merchants can experience an increase in an average orders by 60%. Users also tend to be repeat consumers.
Digital wallets are growing in importance for shoppers, explains Libor Michalek, President of Affirm. The BNPL offers monthly, bi-weekly options to pay over time alongside a traditional direct purchase. Credit is provided in real-time with APRs for as little as 0%.
Amazon Pay offers customers a way to manage payment methods and review purchases. If a customer has an Amazon account, they already have Amazon Pay and can use the same payment methods, shipping address, and email already stored in their Amazon.com account.
