Amazon Teams With Affirm to Offer Buy-Now-Pay-Later Option

Amazon is teaming with payments company Affirm to offer online shoppers a buy-now-pay-later option that does not involve credit cards.

San Francisco-based Affirm Holdings Inc. announced Friday that its flexible payment service will soon be available on Amazon.com.

The news sent Affirm's stock up more than 35% in after-hours trading.

With the service, Amazon customers can split the total cost of purchases of $50 or more into monthly payments, and are told the total cost of the transaction up front. Affirm said there are no late fees.

Affirm said the two companies are testing the service with a group of customers and that it will be more broadly available in coming months.

Earlier this month, digital payments company Square Inc. acquired Afterpay, which provides a buy-now-pay-later option for merchants.

Installment plans are popular with retailers because they encourage customers to spend more money. And they enable customers with insufficient funds or credit at the time of purchase to walk out of a store — or check out online — with the item they want.

More In Business

Big Business This Week: Could Zohranomics actually work?

We spoke with two experts about why the mayor-elect's plans could be tough to execute.

Are IMAX movies worth the inflated ticket price?

“Premium Large Format” cinema has become an integral part of the film industry, but is it ever worth $30 to see a movie?

Black Friday Ahead: What Shoppers Need to Know About Inventory, Prices, and Promotions

Retailers face tariffs and cost challenges this holiday season. Wells Fargo's Lauren Murphy shares insights on pricing, promotions, and shopping trends.

Love Without Limits: The App Making Dating Accessible for All

Dateability, founded by sisters Jacqueline and Alexa Child, is the only dating app for disabled and chronically ill communities, fostering love without limits.

Inside Musk’s $1 Trillion Payday After It Gets Green Light from Tesla Shareholders

Becky Peterson, Reporter at The Wall Street Journal, explains Tesla shareholders approving Elon Musk’s historic $1T pay package and what it means.

From Boom to Bust: Understanding Crypto’s Volatile Market Swings

Andy Baehr, Head of Product at CoinDesk Indices, breaks down crypto’s Black Friday crash, Bitcoin dipping under $100K, and what’s driving the market rout.

Standing for Our Heroes: How Born Primitive Is Erasing Veteran Medical Bills

Bear Handlon, CEO of Born Primitive, shares how his brand Born Primitive is eliminating millions in medical debt for U.S. veterans and changing lives.

From Cloud Growth to AI Dominance: Matt Calkins Discusses Appian’s Outlook & the U.S. AI Regulatory

Matt Calkins, CEO of Appian, breaks down the latest earnings, enterprise‑AI boom, stock signal and what U.S. regulation means for the next wave of AI.

Air Travel in Turbulence: When Will Flights Return to Normal?

Chris Marquette of POLITICO breaks down how the FAA is cutting flights and facing a critical shortage of air‑traffic controllers amid the government shutdown.

Diving Deep for Green Energy: Sizable Energy’s Undersea Solution With Dr. Manuele Aufiero

Dr. Manuele Aufiero, CEO & Co‑Founder of Sizable En a groundbreaking undersea energy‑storage technology powering the global shift to clean, scalable power.

Load More