Amazon.com Inc. is joining with Affirm Holdings Inc. to allow customers to pay for purchases via monthly installments, signaling further growth in the buy-now, pay-later space.
Snagging a big e-commerce player such as Amazon as a partner sent Affirm’s shares soaring 30% after hours to around $88. The firm sold shares at $49 apiece in its initial public offering in January.
Affirm’s other partners include Walmart Inc., Expedia Group Inc. and Peloton Interactive Inc.
Amazon said it was testing Affirm’s buy-now, pay-later payment option with some customers and would make the method more broadly available in the coming months.
Amazon already offers U.S. customers a few installment options, such as monthly payment plans for Amazon-branded credit-card holders and Citigroup Inc. credit-card users.
