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| Amazon enters the field of buy now, pay later |
Amazon is getting into the “buy first, pay later” realm and the e-commerce giant is teaming up with Affirm to launch the first installment payment option on the popular e-commerce site.
The two companies said in a statement that some US Amazon customers may buy first and pay later, and that there will be more extensive promotions in the coming months.
The partnership allows Amazon customers to split purchases of $50 or more into smaller monthly installments. No late fees or hidden fees are charged to consumers.
With young consumers turning to these alternative lines of credit, this partnership is the latest sign of a credit space emerging.
In early August, Square acquired Australian fintech company Afterpay for $29 billion.
Installment loans have been around for decades and have been used to purchase products like furniture in the past.
Online payment companies and fintech companies are rushing to launch their own versions of online payment products.
Affirm is one of the most popular installment payment methods. It works with more than 12,000 retailers, including Walmart.
Amazon enters the field of buy now, pay later
Offer credit products similar to PayPal, MasterCard, American Express, Citibank, Klarna, Fiserv and J.P. JP Morgan Chase in.
Bloomberg announced last month that Apple plans to partner with Goldman Sachs to create installment loans.
He confirmed that some Amazon customer loans carry interest. But some are not necessary. Depending on the customer and the value of the order, the service can be offered via a 3- to 48-month payment plan. Rates range from 0% to 30%.
Whatever interest consumers pay on these loans, they accept these interest rates up front. This benefit is not doubled.
By partnering with Amazon, Affirm provides transparency, predictability, and affordability to the millions of people in the United States who shop on Amazon.com.
"Affirm's credit card alternative offers more payment options and flexibility than consumers want on Amazon," the company added.