Why Affirm (AFRM) and Katapult (KPLT) are Buy Now, Pay Later leaders

Affirm (AFRM) and Katapult (KPLT) are poised to take leadership of the Buy Now, Pay Later trend. These two companies serve to different purposes and that’s why the partnership between Affirm and Katapult is highly beneficial.

Affirm (AFRM) partners with Amazon (AMZN)

Affirm recently announced that it has partnered with big retail ecom giant Amazon, this will allow Amazon to enable buy now, pay later services through Affirm, services has started rolling out to certain regions and will roll out to broader regions throughout the upcoming months ahead.

The company says that the option will appear on products that are priced $50 or above. Furthermore, the companies said they have already begun testing the feature with “select customers.” It’s unclear how many people might see this option early, or in what markets.

Katapult (KPLT) the linchpin for Buy Now, Pay Later

Katapult is the middle man between Affirm customers, you see, back in the earlier part of this year Affirm and Katapult entered into an partnership where all of Affirms denied customers will automatically be sent to Katapult where they are accepted and can continue the payment flow, this is called a waterfall integration.

The partnership with Affirm gives Katapult access to customers who were rejected for leasing options. Affirm then sends the data to Katapult who can offer approval to the customer.

Katapult is considering over 900 merchants that it could potentially work within a similar manner of gaining customers Affirm has rejected.

In addition, Katapult has partnerships with Shopify and Wayfair to name a few. You should also note that Katapult does subprime lending (lending for users with less than average credit score) and Affirm does prime lending (lending for users with average credit score and above), so you can really see that Katapult is very complementary for prime lenders because its the first and only buy now, pay later firm that offers online ecommerce subprime lending.

Bottom line

The bottom line is that you should definitely be looking at Affirm (AFRM) and Katapult (KPLT) as leaders in the Buy Now, Pay Later space, they are complementary to each other and is worth an investment long term.