Affirm Holdings Inc. shares jumped 40% in the after-hours session Friday after the fintech company said it has partnered with Amazon.com Inc. to allow a pay-over-time option at Amazon’s checkout.
“Select” Amazon customers will have the option to split the total cost of purchases of $ 50 or more, and Amazon plans to make Affirm available to more customers “in the coming months,” Affirm said.
Affirm AFRM, -2.97% ended the regular trading day down 3%. Amazon.com shares AMZN, +1.01% were flat after ending the trading session up 1%.
Amazon “is always looking to add flexible payment options, and Affirm does just that” with no late or hidden fees, an Amazon.com spokesperson said Friday.
“Buy now, pay later” companies such as Affirm offer a twist on the old layaway plan, allowing consumers to buy in installments and charging them either simple interest or no interest at all and with instant access to what they bought.
Affirm shares rallied earlier this month after a report that said that Apple Inc. AAPL, +0.72% was planning to offer it to those looking to buy Apple devices in Canada.
Also earlier this month, Square SQ, +2.24% said it planned to buy Affirm’s rival Afterpay in a $ 29 billion deal.
Affirm went public in January, raising at least $ 1.2 billion, and one of its biggest clients is Peloton Interactive Inc. PTON, -8.55%
The stock has lost 25% since then, however.