Shopify Inc. is stepping up its competition with Amazon.com Inc. by adding another U.S. partner, Affirm Inc., to capitalize on the surge in online shopping during the pandemic.
The Canadian e-commerce giant is working with Affirm to offer flexible payment plans to U.S. consumers. The partnership means merchants using Shopify’s platform will be able to offer an installment plan that gives shoppers the option to split purchases into four payments. It’s expected to roll out before the end of the year.
By forming an alliance, Affirm believes it can help Shopify attract younger consumers who are looking to avoid credit cards with high interest charges, said Affirm Chief Executive Officer Max Levchin. “We’re excited to help them convert those shoppers,” said Levchin, who was one of the founders of PayPal.