Affirm Holdings Inc said on Wednesday it has expanded its partnership with Amazon and reported quarterly revenue higher than Wall Street estimates, driven by growth on its buy, pay later (BNPL) platform by active consumers and merchants. increased from.
Shares in Affirm, which had been falling for the past four sessions and were in for their worst day since the company went public in January, jumped more than 27% in extended trading.
Affirm’s expanded partnership will allow all eligible US purchases of $50 and more on Amazon to be split into simple monthly payments, previously available only to select customers.
Amazon will also receive multiple tranches of warrants to buy shares of Affirm’s Class A common stock, the company said, which will be the e-commerce giant’s only third-party, non-credit card, BNPL service provider in the United States. January 2023 as part of the revised agreement.
Additionally, Affirm will also be embedded as a payment method in Amazon Pay’s digital wallet in the country.
The BNPL industry took off last year, as home consumers opted for online shopping and later payment options to make shopping easier on their wallets.
BNPL firms charge merchants to offer small, point-of-sale loans to their customers, which in the process are paid back in interest-free installments, bypassing credit enquiries.
The company now expects current quarter revenue of $320 million to $330 million, exceeding estimates of $296.09 million.
Total revenue increased to $269.4 million in the first quarter, up from $173.9 million a year ago. Analysts were expecting an average of $248.23 million in revenue, according to Refinitiv’s IBES data.
Affirm’s active subscribers more than doubled last quarter to 8.7 million, while merchants on its platform rose to 102,000 from just 6,500 a year ago.
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