(Reuters) – Shares of Affirm Holdings Inc jumped 43% on Friday after the company partnered with Amazon.com Inc to make its buy now, pay later (BNPL) service available to some customers in the e-commerce giant.
Marketed as an alternative to credit cards, BNPL services have grown in popularity during the pandemic as consumers seek options that make it easier to shop on their wallets.
Jack Dorsey’s Square Inc agreed this month to buy Australian pioneer BNPL Afterpay Ltd for $ 29 billion and a report in July said Apple Inc and Goldman Sachs were preparing a version of the service.
Affirm’s association will allow some Amazon customers to split the total cost of purchases of $ 50 or more into simple monthly payments using its service. The functionality will be rolled out to more customers in the coming months.
The nine-year-old company has grown into one of the best-known BNPL companies in the United States and its partners include Adidas AG, Shopify Inc and Walmart Inc.
Affirm charges merchants a fee for offering small point-of-sale loans that buyers repay in installments, bypassing credit checks.
Shares of Affirm, which debuted on the Nasdaq in January, stood at $ 97 in extended trading.
(Reporting by Eva Mathews in Bangalore; Editing by Aditya Soni)