Amazon Business adds Affirm installment payments for sole proprietors

Amazon has chosen Affirm as the installment-payment provider for Amazon Business, extending pay-over-time financing into its business procurement platform. The arrangement will let eligible customers divide the cost of qualifying purchases into scheduled payments, adding a financing option for small businesses buying through Amazon’s B2B marketplace.

Amazon Business will begin by making Affirm available to eligible sole proprietorships. The company aims to make the payment method available at checkout to all businesses on the platform by Black Friday, according to details reported by Finextra.

Under the arrangement, customers using Amazon Business can select Affirm at checkout for eligible purchases and apply for financing without late fees or hidden fees, according to the companies. Affirm’s product gives approved buyers a set repayment schedule rather than a revolving credit line, with the cost of the purchase split across fixed installments.

The application flow is designed for small business owners. After choosing Affirm at checkout, a buyer enters business information, including the registered business name and business address. Affirm then provides an instant credit decision. If approved, the customer can choose among tailored pay-over-time plans ranging from three months to 48 months.

Todd Heimes, director of Amazon Business Worldwide, said the integration is intended to give small-business customers more flexibility and convenience when buying through Amazon Business. He said Amazon Business is seeking to improve how small companies meet their purchasing needs on the platform.

Affirm extends its Amazon relationship

The Amazon Business deal marks the launch of Affirm’s B2B pay-over-time solution for sole proprietors, according to the report. That positions Affirm’s installment model beyond consumer purchases and into business procurement, where buyers may be managing cash flow while purchasing supplies, equipment or other eligible goods.

The companies have expanded their relationship in stages. Affirm first became available on Amazon.com and the Amazon mobile app in 2021. In 2022, the service expanded to Amazon in Canada. Earlier this year, Affirm was added as a direct payment option within Amazon Pay.

Amazon Business is Amazon’s procurement platform for commercial customers. By adding Affirm to checkout, the platform gives eligible business buyers another way to pay for purchases while keeping the financing decision embedded in the transaction. The customer selects the payment method during checkout, Affirm assesses the application, and the buyer sees repayment options before completing the purchase.

The companies did not disclose financial terms of the arrangement in the reported details. They also did not provide expected transaction volumes, approval-rate targets or revenue projections tied to the Amazon Business rollout.

This story draws on original reporting from Finextra Research.