Amazon’s partnership with Affirm had healthy repercussions on the stock market, with the BNPL platform’s shares skyrocketing.

Affirm Holdings shares soared more than 45 percent on Monday following their big Amazon announcement. 

The buy-now-pay-later (BNPL) platform’s new partnership will give Amazon users the option to pay for purchases valued over $50 in smaller instalments.

While Amazon does have a minor installment offer on some items, it marks its first major partnership with a BNPL platform. 

The deal, announced on Friday, saw Affirm’s share price climb to almost double its opening value, reaching an after-trading share price of almost $100 US. 

Unambiguously positive

Bank of America analysts called the news an “unambiguous positive”, according to CNBC. 

Additionally the move highlights the fintech company’s “technological leadership and strong reputation in the BNPL market”.

Amazon’s adoption of the BNPL scheme is widely welcomed and supported by its millennial audience. 

Trends show that younger generations are resorting to platforms like Affirm and Afterpay as a way of achieving instant gratification. 

Interest rates are also lower – if not there at all – on such money-lending platforms compared to traditional credit cards, which may be seen as a big win in the eyes of millennials. 

The partnership with Amazon comes at a time where competition is heating up between Affirm and its competitors, Afterpay and Klarna. 

Written by Rebecca Borg