Thanks to the new partnership, purchases can be split into smaller payments. Select Amazon customers in the U.S. can now take advantage of the "buy now, pay later" checkout option.
Amazon has partnered with Affirm to provide a new option for purchases of $50 or more, allowing customers to pay for purchases in monthly installments.
Buy Now, Pay Later (BNPL) is a booming industry, especially among younger shoppers who prefer this option to using a credit card.
Will the addition of BNPL to Amazon change the dynamics of the market? Will it make young shoppers more open to spending money on big-ticket items?
Payment by installment itself is not new, it has been offered for years in stores for large items such as appliances and furniture, but it is a recent addition to Amazon.
Paying by credit card is another way to get similar services, but younger members of Generation Z are favoring the new BNPL services.
One reason is that some companies charge zero interest for installments. Affirm has said that some of the loans it provides to Amazon customers will charge interest, while others will be interest-free. Those who grew up on instant gratification from on-demand entertainment and same-day delivery are the perfect audience for loans that seemingly have no downside.
Read more here*.
Amazon has partnered with Affirm to provide a new option for purchases of $50 or more, allowing customers to pay for purchases in monthly installments.
Buy Now, Pay Later (BNPL) is a booming industry, especially among younger shoppers who prefer this option to using a credit card.
Will the addition of BNPL to Amazon change the dynamics of the market? Will it make young shoppers more open to spending money on big-ticket items?
Payment by installment itself is not new, it has been offered for years in stores for large items such as appliances and furniture, but it is a recent addition to Amazon.
Paying by credit card is another way to get similar services, but younger members of Generation Z are favoring the new BNPL services.
One reason is that some companies charge zero interest for installments. Affirm has said that some of the loans it provides to Amazon customers will charge interest, while others will be interest-free. Those who grew up on instant gratification from on-demand entertainment and same-day delivery are the perfect audience for loans that seemingly have no downside.
Read more here*.