Affirm and e-commerce giant Amazon.com Inc (NASDAQ:AMZN) have announced an expanded partnership that will make Affirm the first pay-over-time option available at checkout on Amazon Business.
Shares of the financial technology firm jumped 16% to $20.38 by midday in New York. Amazon’s shares were steady at $137.11.
Amazon Business is a business-to-business (B2B) store that helps businesses digitize and automate procurement with powerful management controls and analytic tools, the companies noted in a statement. Using Affirm, they can split the total cost of eligible purchases and pay over time.
Amazon Business said it plans to start rolling out Affirm to eligible sole proprietor businesses with immediate effect and the new payment option will be available at checkout to all eligible sole proprietor customers by Black Friday.
“The technology, ease of integration, and ability to support a broad range of transactions—especially as Affirm is already used by millions of Amazon customers today—make this a natural extension of our larger partnership,” commented Todd Heimes, director of Amazon Business Worldwide.
The companies said small business owners selecting Affirm at checkout on Amazon Business will receive an instant credit decision after entering the required information. If approved, they can select from customized pay-over-time options of three to 48 months with the guarantee that will never pay more than the amount agreed to upfront.
“According to the IRS, more than 28 million sole proprietorships do business in the United States,” Affirm’s chief revenue officer Wayne Pommen added.
“By offering these business owners a transparent and flexible way to pay over time for the items they need, we can help them increase their purchasing power, better manage their cash flow, and accelerate their growth.”
Affirm launched on Amazon.com and the Amazon mobile app in 2021 and expanded to Amazon.ca in 2022. It was directly integrated as a payment option on Amazon Pay earlier this year.
Contact the author at stephen.gunnion@proactiveinvestors.com