Dan Dolev, analyst at Mizuho, joins Tech Check with results from his company's survey that found almost 50 percent of Amazon users could use the buy now, pay later service the company is rolling out in partnership with Affirm. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
Shares of Affirm on Monday closed up 46.67% after the buy now, pay later platform announced a partnership with Amazon.
The partnership, which was made available to some Amazon users Friday, will allow customers to break up purchases of $50 or more into smaller installments. It also marks Amazon’s first partnership with an installment player, though the company already offers installment options on some items.
The deal was announced Friday, sending Affirm shares up as much as 50% in after-hours trading. Analysts at Bank of America called the news an “unambiguous positive,” but said it highlights Affirm’s “technological leadership and strong reputation in the BNPL market.” The analysts also maintained a buy rating on Affirm.
Amazon’s entry into the buy now, pay later space comes as demand for the space continues to heat up, particularly among younger generations who are turning to BNPL platforms instead of traditional credit cards that often come with high-interest rates.
This month, Square announced it was entering the space through a $29 billion purchase of Afterpay. Bloomberg News previously reported Apple is also planning its own installment partnership with Goldman Sachs.
Some of the biggest companies in buy now, pay later space include Affirm, Afterpay and Klarna. Most of them do not charge interest.
Some Amazon customers will bear interest on purchases, CNBC previously reported. Affirm’s current partners include Walmart and Peloton.
Amazon shares closed up 2.15% on Monday.
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
0 Comments