The news: Affirm’s buy now, pay later (BNPL) product will be available through Amazon Pay, per a press release. US merchants offering Amazon Pay can add Affirm’s Adaptive Checkout as a payment option at checkout.
How we got here: Amazon and Affirm have a long-standing relationship.
Despite deepening connections to Affirm post-exclusivity period, Amazon also partnered with Citi to let select credit cardholders access Citi Flex Pay in their Amazon Pay wallets.
How this can benefit Amazon: Amazon may be trying to spur Amazon Pay adoption as it struggles to compete against other buy buttons, like PayPal or Shop Pay.
But offering Affirm may make Amazon Pay more appealing, especially to merchants that don’t directly compete with Amazon. Affirm helps increase basket sizes and conversion rates: Merchants reported 60% higher average order values from Affirm compared with other payment methods.
How this can benefit Affirm: The BNPL landscape is more competitive than ever, but strengthening a tie-up with the world’s largest etailer should help solidify Affirm’s standing.
Total BNPL payment value will reach $94.87 billion in the US this year, skyrocketing to $143.44 by 2026, according to our forecasts.
Dig deeper: Check out our “US Buy Now, Pay Later Forecast 2022” report for more on BNPL user and volume growth trends.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.