Amazon is moving into buy-now-pay-later. The company just announced a partnership with Affirm, a major player in this space. Starting soon, customers at checkout will see the option to pay in a series of monthly installments on purchases of $50. In a statement, the companies said they have already begun testing the feature with “select customers.” It’s unclear how many people might see this option early, or in what markets. The companies also did not say when this feature would roll out more widely.
In financial terms, the companies promise in their statement: “As always, when choosing Affirm, consumers will not be charged any late or hidden fees.” An Amazon spokesperson told Engadget in an email that customers must agree to a soft credit check at checkout. The financial terms offered to depend on both the person’s credit history and the purchase price, she said. Depending on the customer and their order value, they might be offered anywhere from a three- to a 48-month payment plan, with interest ranging from 0% to 30% APR.
An Affirm spokesperson added in an email that whatever interest consumers pay related to these loans, they agree to those rates upfront, and that interest does not compound.
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