Affirm has become the first “buy now, pay later” (BNPL) provider to join forces with Amazon Pay, CNet reported. This partnership allows U.S. merchants using Amazon Pay to offer their customers the option to utilize Affirm’s BNPL technology. Rather than integrating Affirm as a standalone installment option, merchants can seamlessly incorporate it into their existing Amazon Pay button. This development comes ahead of Amazon’s anticipated annual Prime Day in July.
Affirm first announced its partnership with Amazon in August 2021, which was initially exclusive until January 2023. It launched in the United States and later expanded to Amazon.ca and the Amazon mobile app in Canada. Through its Adaptive Checkout technology, Affirm now offers consumers tailored payment choices, including biweekly and monthly options, for purchases over $50 with an APR starting at 0%.
If customers wish to use Affirm through Amazon Pay, they will need to undergo a quick approval process, ensuring that Affirm can provide them with lending options. Affirm emphasizes that the checking and approval process is free, real-time, and has no impact on the individual’s credit score. The company has always highlighted its commitment to transparency, assuring consumers that they will not incur any hidden or late fees.
For consumers, this collaboration provides another avenue to divide the cost of purchases over time. Amazon Pay already simplifies online shopping by eliminating the need to repeatedly enter personal and payment information, allowing users to connect their accounts with a single click. The convenience of Amazon Pay is likely to result in increased sales for retailers, and the addition of Affirm’s BNPL option is expected to further boost sales. Additionally, Affirm states that retailers adopting Amazon Pay with Affirm gain access to a new pool of shoppers, as 16 million active users utilize Affirm’s services.
For Affirm, this agreement signifies an expansion of their existing relationship with Amazon. The company boasts 16 million active users. In a similar vein, Apple recently introduced its BNPL service called Apple Pay Later, accessible through Wallet, the digital wallet app on iPhones. Other popular BNPL services include Afterpay, Klarna, and PayPal Pay in 4.
As credit card debt continues to rise and interest rates remain high, with the average APR currently standing at 20.23%, BNPL options offer an attractive alternative for avoiding debt when making significant purchases. These plans typically come with lower interest rates or even zero interest in some cases.
However, utilizing BNPL plans carries the risk of overspending and potentially falling into a debt trap. Unlike credit cards, timely payments may not positively impact credit scores, but late payments do. Late fees associated with BNPL services may also be higher compared to credit cards. It is crucial to carefully consider one’s ability to meet scheduled payments and thoroughly review terms and conditions, including late fees and interest rates, before opting to use a BNPL service.
With a keen interest in tech, I make it a point to keep myself updated on the latest developments in technology and gadgets. That includes smartphones or tablet devices but stretches to even AI and self-driven automobiles, the latter being my latest fad. Besides writing, I like watching videos, reading, listening to music, or experimenting with different recipes. The motion picture is another aspect that interests me a lot, and I'll likely make a film sometime in the future.