BNPL stock Affirm rises 15% on Amazon Pay partnership

Shares of Affirm Holdings (NASDAQ: AFRM) traded nearly 15% in pre-market trading on Wednesday after BNPL announced a strategic collaboration with Amazon (NASDAQ: AMZN).

The two companies have announced that eligible merchants in the United States who use Amazon Pay will now have the convenient option to integrate Affirm’s Adaptive Checkout seamlessly into their checkout process.

“We know customers want convenient and flexible payment options, whether they’re checking out on Amazon.com or using Amazon Pay,” said Omar Soudodi, director of Amazon Pay.

“With the introduction of Affirm on Amazon Pay, merchants can now offer their existing customers the option to pay for purchases over time. This enhances customer satisfaction and serves as a valuable means for attracting and expanding their reach to new customers.”

The press release adds that some merchants, including Casper, USA Berkey Filters, and UltraSabers already use Affirm’s Adaptive Checkout solution within the Amazon Pay app. Accordingly, merchants using Affirm have reported 60% higher average order values when compared to other payment methods.

“Digital wallets are an increasingly critical part of the shopping experience and are expected to account for over half of e-commerce transactions worldwide by 2025,” said Libor Michalek, President of Affirm.