Amazon launching with Affirm in 🇨🇦 is brilliant case study of how to grow FinTech product 🚀; Can owning your banking core be a competitive advantage for neobanks? 🤔; Klarna lays off again 😔
FinTech is Eating the World, 26 September
Hey Everyone,
And happy Monday! Today’s issue is one of the strongest ones I’ve started a new week with. See it yourself as today we’re looking at Amazon launching with Affirm in Canada, which is a brilliant case study of how to grow FinTech products (ecosystems & partnerships is all that matters in FinTech), see whether owning your banking core can be a competitive advantage for neobanks? Stash thinks so (though it doesn’t really have its own core - I will explain!), and Klarna laying off again (poor execution again, +3 bonus reads on Klarna & 1000+ FinTech, Tech & Crypto talent list). Let’s jump straight into the exciting stuff:
Amazon launching with Affirm in Canada is a brilliant case study of how to grow a FinTech product 🚀
The deal 🤝 E-commerce powerhouse Amazon AMZN 0.00%↑ and Buy Now, Pay Later pioneer Affirm AFRM 0.00%↑ are extending their BNPL partnership to Canada, enabling shoppers to pay for their purchases in instalments.
How it works 👉 The service, which rolled out in the US last year, will be available during checkout to all eligible customers in Canada in both English and French within the next month. Here’s how it works:
Customers who select Affirm as a payment option during checkout on Amazon.ca will go through a quick, free soft credit check that won’t impact their credit score.
Affirm's technology will determine available payment options for each customer. If approved, eligible customers will be able to split their purchases of $50 or more into monthly payments.
Why Canada? 🇨🇦 BNPL is a genie in the bottle in Canadian:
Despite BNPL making up just 3% of Canada’s e-commerce transactions in 2021 as per FIS,17% of credit cardholders in the market would consider BNPL for a large purchase, according to JD Power.
BNPL growth in the market has hit 30% annually as of July 2021 partially driven by rising popularity among millennial and Gen Z shoppers as they gain spending power.
Why this matters? 🤔 Affirm + Amazon is a brilliant case study of how you should grow a FinTech product. Here’s more on that + the takeaway: