By Dhirendra Tripathi

Investing.com – Affirm stock (NASDAQ:) surged 12.7% Thursday as momentum for “buy-now-pay-later” services led the company to boost its outlook for the year.

Amazon’s (NASDAQ:) larger partnership was also a strength for the stock. Affirm will now be embedded as a payment option in Amazon Pay’s digital wallet in the U.S.

The company sees annual revenue between $1.22 and $1.25m, with a gross merchandise value of around $13.26billion. It previously projected its revenue for the current year at between $1.16 billion to $1.19 billion, with GMV of $12.6 million.

GMV, which is the sum of all the goods and services that are sold through an ecommerce website, can be used to measure the site’s health and growth.

The company expanded its network of active merchants to over 100,000, the adoption by merchants on Shopify’s platform driving this growth. The number of active consumers has more than doubled. Transactions per customer who is active rose 8 percent.

As consumers were short on cash and looking for buy-now/pay-later options, Affirm capitalized on the pandemic-fueled demand.

For decades, the BNPL option was the most popular credit card company option. However, most fintech BNPLs charge no interest. Instead they earn their money by the difference in what they charge the merchant and what they get back from the buyer. The user-friendly design may increase sales but there have been concerns due to the absence of credit checks. That is despite the fact, the payments company provides credit.

Affirm’s GMV in the first quarter jumped 84%, to $2.7 billion. Revenue total rose 55% to $269 Million. The revenue, less transaction cost, more than doubled, to $112million.

The operating loss widened nearly five-times to $166 million owing to stock-based   compensation following the company’s January IPO as well as new investments in product and engineering talent and marketing.