Amazon makes buy now pay later move with Affirm deal
Amazon is partnering with Affirm for its first ever buy now, pay later option on the e-commerce site.
This is now available to certain Amazon customers in the US, with a broader roll-out set for the coming months.
The tie up will let people split purchases of $50 or more into smaller, monthly instalments.
“By partnering with Amazon we’re bringing the transparency, predictability and affordability that Affirm provides today to the millions of people who shop on Amazon.com in the US,” says Eric Morse, Senior Vice President of Sales at Affirm, which works with more than 12,000 merchants, including Walmart.
“Offering our alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”
Klarna
Klarna’s losses increased significantly in the second quarter.
The Swedish buy now, pay later venture, most recently valued at $46 billion in an investment round led by Japan’s SoftBank, increased the volume of purchases it processed on behalf of retailers by two-thirds in the second quarter to $20 billion.
But its operating losses rose from $10 million a year earlier to $111 million as credit losses more than doubled in that period.
Klarna regularly posted profits during its formative years, but has been loss making since 2019 as it expanded rapidly, particularly in the US.
