Affirm share price soars 30 per cent after Amazon expansion

Affirm saw its shares skyrocket 30 per cent after the news it was tying up with ecommerce giant Amazon in after-hours trading on Wednesday.

The buy now, pay later (BNPL) company also beat analysts’ expectations on revenue in the first fiscal quarter.

Affirm’s expansion with Amazon will see Affirm serve as the sole BNPL provider on the ecommerce marketplace.

Credit card companies will still be able to offer their own payment solutions on Amazon’s site in the future however.

Amazon will also integrate the platform into its digital wallet in the US where Affirm will be able to be used for eligible purchases on Amazon of $50 or more.

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The BNPL lender also gave strong guidance for the current quarter, predicting revenue of up to $330 million, compared to expert’s estimations of $296 million.

The two companies’ partnership was first announced in August, which helped send Affirm’s shares climb by nearly 47 per cent.

Affirm shares its sector with Swedish fintech giant Klarna and Jack Dorsey’s Afterpay.

Apple is also reportedly working on an installment plan product in partnership with Goldman Sachs.

Affirm shares closed down more than 15 per cent in regular trading Wednesday.

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