Investing.com – Affirm stock (NASDAQ:AFRM) climbed 40% in Monday’s premarket trading following the company’s tie-up with Amazon (NASDAQ:AMZN) which will allow it to offer its ‘buy now, pay later’ option to the online retailer’s customers.
Amazon and Affirm are testing with select customers now, and in the coming months, the option will be more broadly available to customers, according to a note by the latter on Friday.
Amazon customers will get the option to split the total cost of purchases of $50 or more into simple monthly payments by using Affirm. Approved customers are shown the total cost of their purchase upfront and will never pay more than what they agree to at checkout, the note said. Consumers will not be charged any late or hidden fees.
‘Buy now, pay later’ option has been the mainstay of credit card companies’ business model for decades. However, the emergence of fintech companies has now added a new edge to it as companies, with access to troves of user data and ability to mine it in a jiffy, are able to offer more customized offerings to their customers.