Amazon wants you to buy, buy, buy, so it does Easier up to you to do that. The company has rolled out a buy-now and later-pay at checkout option for select customers in the United States and plans to expand access to this payment method in the coming months.
Amazon partners with Affirm payment network to allow customers to divide the total cost of purchases over $ 50 into monthly payments. In a press release issued on Friday, Affirm said “Approved” customers will see the full amount they agree to pay at checkout and no late or hidden fees will be charged. Affirm says CNBC that some of the purchases from Amazon that it funds will carry interest, while others will have an annual percentage rate of 0%.
This is Amazon’s first-ever buy-it-now option for the U.S. market, the outlet said. The company offers similar installment plans in other countries.
“By partnering with Amazon, we are bringing the transparency, predictability and affordability that Affirm offers today to the millions of people who buy from Amazon.com in the United States,” said Eric Morse, senior vice president of Affirm sales, in a press release. “Offering Affirm’s alternative to credit cards also gives consumers more payment choice and flexibility on Amazon. “
Affirm has facilitated more than 17 million purchases to date, according to its website. Its network includes more than 12,000 traders, like Peloton and Walmart.
If this sounds a bit familiar to you, it’s because buy-it-now and check-out online options are all the rage. In early August, Square announced its intention to buy Afterpay, an Australian installment payment platform, for $ 29 billion. PayPal offers its own “Pay in 4” option, which divides the payments into four interest-free payments. Apple is also reportedly looking to enter the game with a “Apple Pay Later” service. The list goes on.
I’m no stranger to buy now-pay-later options, although I haven’t used any of the headline-grabbing ones. I bought phones and computers this way. However, the rise of all of these payment options worries me. It’s easy to say you’ll pay later after you’ve done a bunch of shopping, but once the day to pay comes around, the full weight of these purchases becomes a reality. For some, the burden may be heavier than they imagined.