'Buy now, Pay later' payment network group Affirm said that the two companies have agreed to test their services with selected customers for the time being, which will be broadly available to its customer soon.
“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 U.S.,” said Eric Morse, Senior VP of Sales at Affirm. “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”
Affirm, the company which went public on Nasdaq under the ticker 'AFRM' in January.
Wondering what kind of company is Affirm is?
Max Levchin is the co-founder and CEO of the company. Levchin is not a new name in Wall Street. He is a software engineer who co-founded the company that became PayPal (PYPL) - Get PayPal Holdings, Inc. Report.
Levchin's Affirm - founded in 2012 - is a loan company that lets customers buy instantly and pay later. It’s an alternative to credit cards, where customers are not charged with late fees or any other hidden fees.
"We have served millions of consumers through thousands of merchant partners, including some of the biggest brands in the world, all without ever charging a single late fee or penny of deferred interest," Levchin said.
Wondering how customers make their payments?
The company allows customers to choose a monthly payment plan of their choice - usually on 3, 6, or 12-month plans.
The company also runs a soft credit check to see if customers qualify for a loan. As per Nerd Wallet, applying for a loan with Affirm won’t affect your credit score, however, proceeding with it may.
Fun fact: If you are a small business owner and want Levchin to invest in your company, make a YouTube video and send him your pitch.
"Sometimes I invest in small companies," Levchin said, in his website. "If you want to send me your 'pitch,' please consider recording a pitch video, posting it on YouTube, and sending me the link. I found this approach to be very time-efficient."
"... please do not be offended if I never respond, as I tend to be very busy," he added.