In an audacious move, Amazon is spicing up its financial game, offering a buy now, pay later (BNPL) option through a partnership with Affirm. The duo has their sights set on the backbone of American commerce – small business owners.

Affirm and Amazon Business

Amazon Business, the tech titan's e-commerce offering tailored to businesses, has allied itself with fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Affirm. Targeting sole proprietors and small businesses, the system offers loans from $100 to a jaw-dropping $20,000 and should be up and running by Black Friday. Affirm's shares skyrocketed by 19% upon the news.

📣 We’ve expanded our partnership with @amazon so eligible sole proprietors shopping on @AmazonBusiness can pay over time with Affirm to help increase their purchasing power, better manage their cash flow, and accelerate their growth. For more: https://t.co/fuiPCI1Cei

— Affirm (@Affirm) November 2, 2023

Amazon Business, a juggernaut born in 2015, has blossomed into a $35 billion phenomenon. Now, with the unveiling of this buy now pay later (BNPL) offering, it’s adding a new service for its over 6 million global customers.

🆕 Today: We're teaming up with @Affirm to make their pay-over-time option available at checkout on @AmazonBusiness.

This will allow Amazon Business’ eligible sole proprietors to split the total cost of eligible purchases and pay over time, without late or hidden fees. 🙌 ⬇️ pic.twitter.com/xKysoHhXiC

— Amazon News (@amazonnews) November 2, 2023

Cash Flow Saviors

“We constantly hear from small businesses that say they need payment solutions to manage their cash flow,” Todd Heimes, director of Amazon Business Worldwide, said in an interview. “We offer the ability to use credit cards and to pay by invoice; this is another option available to small business customers to pay over time.”

Approved participants will be able to enjoy payment flexibility, paying in installments. The annualized interest rate sits at 10% to 36% based on perceived risk and there are no late or hidden fees lurking in the shadows. Affirm Chief Revenue Officer Wayne Pommen claimed that transparency is the name of the game and that the company aims to be clear with clients.

A New Market

The stage is set for small businesses, often shunned by traditional financial institutions. Heimes signals this as a nod to the chorus of small businesses craving flexible payment solutions. Credit cards and invoices may end up as backups, while Amazon and Affirm share the spotlight.

Affirm, seeking a rebound after the Peloton plunge, strategically targets sole proprietors, the unsung heroes of American enterprise. With 28 million of them registered in the U.S., it's a grand entrance into a realm where traditional financial institutions fear to tread.