Amazon is also experimenting with installment payments in ecommerce
Go to the "buy now, pay later" test with Affirm in the US. Apple and Twitter's Jack Dorsey also launch into a market that has made the fortune of Europe's largest fintech, Klarna
The logo of the Amazon ecommerce platform (photo by Florian Gaertner / Photothek via Getty Images) Amazon enters the world of “buy now, pay later”, thanks to a collaboration with Affirm, a Californian fintech company specialized in enabling the installment payment service for the retail trade. This week will start testing with selected customers in the United States to verify the operation of the partnership, which will allow customers to divide the cost of purchases made on ecommerce over $ 50 in monthly payments. A joint note states that "customers will not be recharged with hidden or overdue fees". In the coming months, the service will be extended to ever wider user groups.Affirm shares rose 33% in the phase following the close of the stock market on Friday 27 August, after the announcement was made. Fintech handled gross sales of $ 2.3 billion, up 83% year-over-year in fiscal third quarter ended March 2021, with revenues of $ 230.7 million, up 67%. compared to the same period of 2020. The expected turnover for the current year is 824-834 million dollars. To date, 12 thousand merchants have been served, doubling compared to a year ago.
The market for installment payments
The global market for online installment payments was worth $ 4 billion a globally and, according to analysts from Grand view research, a research firm for the investment market, it will grow to 20.4 billion by 2028 with an aggregate annual growth rate of 22.4%.Apple has also set its sights on it, planning to launch a service in collaboration with Goldman Sachs. According to what emerged in July, Apple Pay Later will allow you to pay in four installments every two weeks, without interest ("Apple Pay in 4"), or over several months, but with interest. Apple Pay generates $ 50 billion in revenue in Cupertino, and Apple Card already offers the option to split purchases in installments, but only to purchase the brand's products. Apple Pay Later would be ready for any transaction.
Jack Dorsey, Twitter founder and CEO of fintech Square, has made an agreement with the Australian company Afterpay, which operates in the same market, to purchase the entire share package for $ 29 billion, with a 30% premium on what was the last closing price before the offer launched in early August. The deal will be closed in the first quarter of 2022. A sign that for the fintech world the issue of payment by installments is central.
Other companies such as PayPal, Mastercard and American Express have moved into the sector that made the fortunes of Klarna, the largest European fintech ($ 45 billion valuation). The Swedish company secured its third $ 639 million funding round in June, kicking off a hot summer in the “buy now pay later” world, a payment method popular with Generation Z and Millennials. Generally these startups take a commission from merchants, but they can use the service as an additional marketing channel to reach customers, who usually pay a fee in case of delayed automatic payment.
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Topics
Amazon Digital business Ecommerce Fintech Digital payments startup globalData.fldTopic = "Amazon , Digital business, Ecommerce, Fintech, Digital payments, startups "
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