Amazon has become the latest big name to get into the buy now, pay later space. The e-commerce giant announced it is partnering with Affirm to install the payments option on its popular e-commerce site.

Affirm’s buy now pay later checkout option will be available to certain Amazon customers in the U.S. starting Friday with a broader rollout in the coming months, the companies said in a statement. The partnership will let Amazon customers split purchases of $50 or more into smaller, monthly installments.

“By partnering with Amazon we’re bringing the transparency, predictability and affordability that Affirm provides today to the millions of people who shop on Amazon.com in the U.S.,” Eric Morse, Senior Vice President of Sales at Affirm, said in a statement. “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”

The companies promised transparency in their financial dealings with customers saying “as always, when choosing Affirm, consumers will not be charged any later or hidden fees.”

Also, Amazon spokesperson told Engadget in an email that customers must agree to a soft credit check at checkout. The financial terms offered depend on both the person’s credit card history and the purchase price, she explained, adding that depending on the customer and their order value, they might be offered anywhere from a three-to 48-month payment plan, with interest ranging from 0% to 30% APR.

In addition, Affirm spokesperson said that whatever interest consumers pay related to these loans, they agree to those rates up front, and that interest does not compound.

Affirm’s stock spiked as much as 44% after-hours Friday on the news.

The buy now pay later idea is growing as part of the burgeoning lending space buoyed by younger consumers’ move towards alternative lines of credit. Earlier in August, Square made a big move into the space with a $29 billion acquisition of Australian fintech Afterpay.

As noted by CNBC, the so-called installment loans have been around for decades, and were historically used for big-ticket purchases such as furniture. What we see unfolding now is online payment players and fintechs, competing to launch their own version of “pay later” products for online items in the low hundreds of dollars.

Affirm is one of the best known installment payment options. It works with more than 12,000 merchants, including Peloton and Walmart.

PayPal, Klarna, Mastercard and Fiserv, American Express, Citi and J.P. Morgan Chase are all offering similar loan products. Bloomberg reported last month that Apple is planning to launch installment lending in a partnership with Goldman Sachs.

The partnership makes a lot of sense for Amazon since it will drive a throng of consumers, especially young people, to its e-commerce store.

Last year, I coined the word “fintechnolization” – a construct that every digital platform must have a maturity state of offering a fintech solution. I had watched all great digital platforms on how they ended up providing fintech solutions even when they began in an unrelated sector. It was also on that framework that I started Tekedia Capital since Tekedia itself is a platform. In that piece, I made a call that in 2021, I would start a financial services solution on Tekedia!

In our last investment cycle, we deployed $3.5 million, validating that call. Yes, if you have thousands of people coming to your platform, you must find a way to offer a financial services solution if indeed you are a platform.

From one of the best in the world, Andreessen Horowitz,  the experts just put out a piece titled “Every Company Will Spin Out a Fintech Company”. Thank you Nnamdi for sharing that piece today. It validates my hypothesis that our digital startups must incorporate elements of financial services irrespective of whatever they do, upon becoming organic platforms.

Fintechnolization of Platforms – Expect This Redesign in Startups

The early bird registration deadline for the 6th edition of Tekedia Institute Mini-MBA (Sept 13-Dec 5) is today, Aug 28. Our program is online, self-paced, and costs $140 (or N50,000 naira) per person. It involves pre-recorded and live Zoom sessions, facilitated by executives from the finest companies you admire.

We have many goodies if you beat the deadline including attending our Innovation Week and Career Week free besides access to my books, and certificate courses at Facyber.com. You will also have access to the critics-loved The Dangote System (yes, bring it on, lol).

Beat the deadline and join the best school. Click and register and my team will get you in. They run 24/7 because now we serve 39 countries. Become an innovator and a champion of markets; click and register here. 

Cristiano Ronaldo makes it back to Manchester United in a €15 million deal with a potential €8m addition. He will sign a two year contract to reconnect to the old club after 12 years. On business, this is superb but on sports and trophies, this is poor. They will get more TV rights but that is it!

Ronaldo is a legend. He scored more than 80 goals in Italy in 3 years. But under him Juventus degraded. Before his arrival, Juve was easily winning the league – 9 straight! In Ronaldo’s last session, the Old Lady was 4th. Notice that they made no progress on the Champions League: lost to Ajax in quarterfinals and last 16 to Lyon and Porto. Largely, Juve won only one knockout game with him. Not his fault except that he was in the midst!

Ronaldo will score many goals in Old Trafford. But scoring goals without creating goals or having others who do, will rarely win Champions League. He scored many goals in Italy, winning the battle but if you check, he lost the war. I do think that ManU needs a different type of player because ManU lacks consistency in structure in the midfield.  The ManU coach Solskjaer was an open book which other coaches read quickly!

I am never a good footballer but in secondary school, my nickname was Sausa: the football strategist and analyst. What a village boy! Welcome home Ronaldo, nevertheless.

Updated After Facebook and LinkedIn Comments

General response on my Cristiano Ronaldo’s piece. Yes, my problem is that I wrote something unpalatable about a god to many. I would not have written that piece if I am currently in Lagos. CR is a god and Manchester United is a temple. The altar remains the streets of Lagos and beyond where fans congregate on any ManU game.

So, I am aware that I was going against the crusaders of the Red Devils for pointing out that CR won his battles in Italy with many goals but lost the war of bringing Champions League to the Old Lady. But if you believe in numbers, my point is clear.

But when it comes to gods, even numbers are meaningless. CR, I am with you on this. Break the nets and may we forget our problems in Nigeria from those goals!

The article – https://lnkd.in/e6H8izyC).