Affirm shares soar after Amazon partnership that lets you buy expensive things in installments

• Shares of Affirm were up more than than 41% Monday morning after the buy now, pay later platform announced a partnership with Amazon on Friday.
• The partnership will allow customers to break up purchases of $50 or more into smaller installments.

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Shares of Affirm opened up more than 41% Monday after the buy now, pay later platform announced a partnership with Amazon on Friday.

The partnership, which was made available to some Amazon users Friday, will allow customers to break up purchases of $50 or more into smaller installments. It also marks Amazon's first partnership with an installment player, though the company does offer installment options on some items already.

Following the announcement, Affirm's shares spiked as high as 50% in after-hours trading Friday, while Amazon shares remained unchanged. Analysts at Bank of America called the news an "unambiguous positive," but said it highlights Affirm's "technological leadership and strong reputation in the BNPL market." The analysts also maintained a buy rating on Affirm.

Amazon's entry into the buy now, pay later space comes as demand for the space continues to heat up, particularly among younger generations who are turning to BNPL platforms instead of traditional credit cards that often come with high-interest rates.

This month, Square announced it was entering the space through a $29 billion purchase of Afterpay, and Apple is also planning its own installment partnership with Goldman Sachs, Bloomberg previously reported.

Some of the biggest companies in the space include Affirm, Afterpay and Klarna, most of which do not charge interest. Some Amazon customers will bear interest on purchases, CNBC previously reported. Affirm's current partners include Walmart and Peloton.

Shares of Amazon remained largely flat in early morning trading.

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