Shares of Affirm Holdings Inc (AFRM), a buy-now-pay-later service, soared more than 40% after the company announced an a partnership with Amazon.com Inc.

What To Know: This will be Amazon’s first time allowing customers to purchase items with an installment plan. The partnership will allow Amazon customers to use monthly installment payments for any item more than $50.

In the past, installment plans have been reserved for large purchases such as cars, furniture and televisions. Affirm’s platform allows users to break up items such as plane tickets, hotel fares and more.

Why It's Important: Earlier in August, Affirm announced a partnership with Apple in Canada.

“By partnering with Amazon we’re bringing the transparency, predictability and affordability that Affirm provides today to the millions of people who shop on Amazon.com in the U.S.,” Eric Morse, Senior Vice President of Sales at Affirm, said in a statement. “Offering Affirm’s alternative to credit cards also delivers more of the payment choice and flexibility consumers on Amazon want.”

AFRM Price Action: Affirm’s stock has a 52-week high of $146.90 and a 52-week low of $46.50.

In Friday’s after-hours session, the stock was up 41% to $96 at time of publication.