Amazon is the latest entrant in the list of companies who are offering delayed pay arena. For this, the e-commerce giant has announced a partnership with the popular financial company Affirm. With this, Amazon will offer a ‘pay-over-time’ option to buyers purchasing products online. The offer is available to only some customers at the moment. But the company said that it will soon be made available to all customers of the company. The offer will allow customers to purchase relative pricey products and then pay for them in multiple monthly installments instead of making the entire payment at once.
The offer to ‘pay overtime will be available at checkout. Under this option, customers buying from Amazon would be able to purchase products of USD 50 or more and then split the cost into smaller monthly installments over a longer period of time. Commenting on the offer, Affirm said that the total cost of the purchase will always be displayed to customers and they will not have to pay anything extra than the amount agreed upon. Affirm said that some of the customers will be able to change the cost of the product in easy installments at 0 percent annual percentage rate or APR. For them, there will not be late fees or hidden charges. However, some customers will have to bear interest.
Amazon said that some of its customers already have access to this feature and they can opt for an installment payment option on certain items. The company said that a partnership with Affirm will take this feature to more customers. However, it has not specified how many people will be able to access the ‘buy now, pay later model. The model is extremely popular among younger generations of consumers. They usually want flexible payment options and are more interested in opting for this method of payment rather than paying the full price upfront. The trend is getting popular and several companies are now offering these payment options to customers.