Amazon wants you buy, buy and buy. It makes it easy for you to do this. Amazon has made it easier to buy, buy, and pay later for selected customers in the U.S.
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Amazon and Affirm are joining forces to offer customers the option to split the purchase cost above $50 into monthly installments. Affirm announced that customers who have been approved by the company will be shown the total amount at checkout. There will also be no hidden or late fees. CNBC was informed by Affirm that Amazon purchases it finances may include interest. Others will be subject to a 0% annual percentage.
The outlet said that this is Amazon's first ever buy-now-pay later option for the U.S. Market. Similar installment plans are offered by the company in other countries.
Affirms senior vice-president of sales Eric Morse stated that Affirms partnered with Amazon to bring the same transparency, predictability, and affordability to Amazon.com's millions of customers in America. Affirms alternatives to credit cards offer more flexibility and payment options than Amazon customers want.
According to Affirm's website, Affirm has assisted more than 17,000,000 purchases. Its network has more than 12,000 merchants such as Walmart and Peloton.
This is because online buy-now, pay-later options are very popular. Square announced in August that it would purchase Afterpay, an Australian payment-by-instalments platform, for $29 Billion. PayPal also offers a Pay in 4 option that breaks down payments into four interest-free installments. Apple is also said to be interested in a Apple Pay Later service. This list could go on.
Although I am familiar with buy-now-pay later options, I haven't tried any of them. This is how I've purchased computers and phones. I worry about the increase in payment options. Although it is easy to think you will pay later when you have made a lot of purchases, once the day comes to pay, the full cost of those purchases becomes a reality. Some people might find the burden more than they expected.
