Amazon unveils buy now, pay later option from Affirm for small business owners

Amazon is rolling out its first buy now, pay later checkout option for the millions of small business owners who use its online store, CNBC learned exclusively. The tech giant confirmed Thursday that its partnership with Affirm is expanding to include Amazon Business, the e-commerce platform for companies. The move is a boost in a crucial relationship for Affirm, which has had to search for revenue growth after demand for expensive Peloton bikes collapsed. Amazon is unveiling its first buy now, pay later checkout option for the millions of small business owners who use its online store. The tech giant confirmed Thursday that its partnership with Affirm is expanding to include Amazon Business, the e-commerce platform that caters to companies. Affirm shares jumped 19% on the news. The service, with loans ranging from $100 to $20,000, will be available to all eligible customers by Black Friday, or Nov. 24. It is specifically for sole proprietors, or small businesses owned by a single person, the most common form of business ownership in the U.S.

With this approach, users can pay for Amazon purchases in equal installments over three to 48 months. They are charged an annualized interest rate between 10% and 36%, based on the perceived risk of the transaction. There are no late or hidden fees, the companies said.