The partnership, which was made available to some Amazon users Friday, will allow customers to break up purchases of $50 or more into smaller installments. It also marks Amazon’s first partnership with an installment player, though the company already offers installment options on some items.
The deal was announced Friday, sending Affirm shares up as much as 50% in after-hours trading. 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 also maintained a buy rating on Affirm.
Amazon’s entry into the buy now, pay later space comes as demand for the space continues to heat up, particularly among younger generations who are turning to BNPL platforms instead of traditional credit cards that often come with high-interest rates.
New research from The Strawhecker Group analyzes key trends and consumer attitudes.
Download a free infographic covering several findings from the full report.
Consumers have increasingly adopted Buy Now, Pay Later (BNPL) services for multiple reasons; a desire for financial flexibility, a way to avoid incurring credit card debt, or to purchase items outside of their budgets. However, despite its popularity, consumer debt and missed payments have led to calls for additional research and regulation. Read the press release.
To take a closer look, The Strawhecker Group (TSG) conducted a survey of over 1,500 U.S. consumers in early 2021 with the goal of understanding domestic attitudes and perspectives on the use of BNPL services. The complete findings, a selection of BNPL provider profiles, and market landscape details can be found in the firm’s new report Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes.
Highlights of this extensive 81-page report include:
- Buy Now, Pay Later Background
- Key Players in the Buy Now, Pay Later Space
- Buy Now, Pay Later Consumer Survey
- Concluding Thoughts: The Future of Buy Now, Pay Later