Amazon.com has joined hands with Affirm Holdings, Inc., announcing a long-term partnership that will strengthen the ideology of “buy now, pay later.”
This move is expected to generate more profits from the large-scale items placed on Amazon from the new and budding customers apart from the amazon loyalists.
The “buy now, pay later” is an ideology that allows the potential clients to make payments in later dates while purchasing now. The potential client will receive the bought item immediately but can pay later as promised most commonly through installments.
This is one of the greatest initiatives taken by amazon.com as it will keep BIG MONEY flowing into the company while innovating the overall business model of the company.
The buy now, pay later model also known as BNPL is getting increasingly famous in the online business arena. The young budding consumers commonly prefer BNPL over the traditional and orthodox payment methods such as credit cards and paybacks on interest rates.
Apart from amazon.com, many other companies have acquired the BNPL model as it has been gaining popularity quite rapidly amongst business companies. Square, Inc., PayPal holdings and many others have dived into the trend of BNPL and merged their traditional payment methods with this new model to hunt new cash flows.
The BNPL model was not an idea invented by amazon but after it is acquired by the online giant, the popularity graph is going to grow. It will help amazon generate revenue from multiple windows as well as align different new business avenues within the banner of amazon.
Amazon took a smart move of acquiring the buy now pay later model while the company is already in its innovative mode and trying to track down more success. The acquisition of affirm will make the road to success more steady by generating big money that too for the long term.