Amazon Doesn't Intrude on Industrialism.

  Amazon Doesn't Intrude on Industrialism. Rather than creating the industrial service itself, Amazon aims to partner with another company. Amazon AMZN (NASDAQ) $3.508,57 +37,78 (+%1,09) is partnering with Affirm (NASDAQ:AFRM) to offer  buy now, pay later (BNPL) at checkout. At least with this election, he showed that he is not interested in space at the moment. How good this partnership is for Affirm, PayPal PYPL (NASDAQ) $288,66 0,00 (%0,00), Square SQ (NYSE) $268,07 0,00 (%0,00) and all other players on BNPL.

The reason for Amazon's disinterest

In fact, Amazon is known to have been in the payments space since 2007. Today, there are "tens of thousands" of websites that use the Amazon Pay service. Although unwilling to share information, Amazon has opened up to sharing information because it has partnered with competitors in other areas, particularly the Amazon Web Services business.

Rather than creating the industrial service itself, Amazon aims to partner with another company.

Despite all the challenges it faces, payments remain an area of ​​interest for Amazon. Remarkably, Amazon has already gained a huge edge in the space by offering customers the opportunity to pay in installments for Amazon devices like Kindle e-readers for years. Because he already knows a lot about the shopping habits of his customers. This information can help them make better credit decisions.

Actually the area is still very crowded

Even if Amazon isn't going after the buy now pay later deal, it's still a very crowded space. Therefore; BNPL volume is growing rapidly and the global market is estimated to reach $1 trillion by 2025. It's important to note that while Affirm is the big winner of the Amazon partnership, it competes with PayPal, Square, most of the major credit card companies, and other payment processors. As companies seek to capture a share of the rapidly growing market, investors should expect the market to remain highly competitive. Affirm saw increased operating loss in 2021 as it invested in technology and data analytics to stay ahead of the competition with PayPal and Square. But while there is plenty of growth left in the BNPL space, Amazon is still in a position to decide at some point that it is worth pursuing.  

Source: The Motley Fool

 

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