Shares of Affirm Holdings, Inc. (NASDAQ: AFRM) soared more than 2% on Wednesday. This surge was triggered by the news that Amazon Pay has now allowed eligible U.S. merchants to incorporate Affirm’s pay-over-time options into their checkout process. Amazon Pay is a renowned payment processing service owned by Amazon.com, Inc. (AMZN).
This move brings Affirm’s innovative pay-over-time technology to Amazon Pay’s secure and user-friendly payment solution. The technology is already being utilized by millions of customers on Amazon.com and the Amazon mobile app.
Omar Soudodi, the director of Amazon Pay, expressed excitement about the partnership, stating, “With Affirm on Amazon Pay, merchants can offer a pay-over-time option to their existing customers and have another way to reach new customers.”
The availability of Affirm’s payment option at checkout has proven to be a game-changer for merchants. Reports indicate that businesses using Affirm have witnessed a remarkable 60% increase in average order values compared to other payment methods. In addition, approximately 88% of Affirm purchases come from loyal repeat customers.
Libor Michalek, President of Affirm acknowledged the growing significance of digital wallets in the shopping experience while noting, “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. In addition, customers want more choice and flexibility when paying online.”
Affirm’s Adaptive Checkout presents customers with convenient pay-over-time options, including bi-weekly and monthly payment plans. These choices are now displayed side-by-side during the checkout process, providing shoppers with flexibility and control over their payment preferences.