Affirm Holdings Inc (NASDAQ: AFRM) opened more than 40% up in the stock market on Monday morning after announcing its partnership with Amazon.com Inc (NASDAQ: AMZN) that will enable some customers of the eCommerce giant to benefit from its buy now, pay later (BNPL) services.
Details of the partnership
Select Amazon customers will no longer have to prepay the entire cost of the products purchased on the eCommerce platform. When they shop for $50 or more at Amazon, they’d be able to use Affirm make split the total cost into simple monthly payments.
According to Affirm, its services will be available to many more customers at Amazon in the upcoming months. The $25 billion company helps shoppers bypass credit checks with small point-of-sale loans that are to be repaid in instalments.
In the recent decade, Affirm established itself as one of the most popular U.S. based BNPL platforms with notable names as partners, including Shopify, Adidas, and Walmart. The San Francisco-based company is now valued at $25 billion.
BNPL services are on the rise
BNPL services have particularly boomed amidst the pandemic that fuelled online shopping. As people looked for alternatives to credit cards that are also lighter on the wallet, companies like Affirm took it on them to make it easier for people to buy on the internet.
With rising popularity, such deals and partnerships have been the talk of the market this year. Earlier in August, Jack Dorsey’s Square Inc said it would buy Australian Afterpay Ltd for $29 billion to benefit from its BNPL services. Apple and Goldman Sachs are reportedly also collaborating to launch such services for the customers.
Amazon shares are also up more than 1.0% this morning.
The post Here’s why Affirm Holdings stock opened over 40% up this morning appeared first on Invezz.
from USA – Invezz https://ift.tt/2WAr6Fa
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments