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Affirm CEO Max Levchin spoke about the company’s successful partnership with Amazon on Thursday, telling CNBC’s Jim Cramer that he approached conversations with the e-commerce giant as he does everyone else. negotiations.
“The way we do business – not just with Amazon, but with each of our partners – we bring the same ethics to these conversations that we do with everything else with our consumers, with our smaller partners,” said Levchin in an interview on “Mad Money”.
“We are an open book. We tell you exactly what we can and cannot do. We tell you exactly what makes us good and bad,” he continued. “We don’t have secret sources of income. We don’t find ways to put something in there later when people least expect it.”
Affirm announced about two weeks ago that it had reached a deal to bring its buy now, pay later services to Amazon’s huge online marketplace. Shares of Affirm climbed to 48% in extended trading on August 27 as investors applauded Amazon choosing the company as its first installment payment provider.
Affirm point-of-sale loans to Amazon customers in the United States will be available for purchases of $ 50 or more. Buyers then pay it back in smaller, fixed monthly installments. Interest rates on Affirm loans range from 0% to 30%, but the company says it doesn’t charge late fees.
Levchin declined to address the financial impact Affirm expects to feel from the tie-up with Amazon, saying it will “obviously” be included in the company’s forecast when enough data is generated.
“With every conversation we had, we would sit down and say, ‘This is how our business works. We think we can help you, let’s become a partner,'” said Levchin, who previously co-founded PayPal before starting Affirm. in 2012. “Amazon is a customer-obsessed company, and so are we. These are the best deals possible when you are completely transparent with your partners. “
Affirm shares surged after business hours Thursday after the company reported fourth-quarter tax results that beat Wall Street expectations. Revenue rose 71% in the quarter to $ 261.8 million, better than the $ 225 million forecast by analysts polled by Refinitiv.
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