Amazon UK Offering "Buy Now, Pay Later" Loans on Purchases Over £400

By Gerald Lynch on at

It started off by selling books, then it became the go-to online spot for CDs and DVDs. Now Amazon is pretty much the first port of call for almost any online purchase. But with its limited financing options, Amazon's always struggled to shift pricier items in volume. However, a new "Pay Monthly" option could change that.

Amazon UK will now offer shoppers a "buy now, pay later" option at the checkout for purchases over £400. The bill can be paid off in a series of instalments over a period of four years (dependant on the monetary value of the purchase), at an interest rate of 16.9 per cent.

While it's unlikely that those who dip into Amazon's wares for the odd Blu-ray boxset or hardback will need the option that often, those looking to buy luxury items or white goods (an area of growing interest for Amazon) could find it attractive, especially if the items are eligible for Prime next-day delivery.

As Amazon increasingly sets its sights on high street competition, white goods and furniture retailers such as Currys and John Lewis could especially feel the pinch from Jeff Bezos' firm's latest push. A slight reprieve comes from the current limitations on the financing options however – at present, Amazon's Pay Monthly option is only offered on goods sold directly by Amazon, rather than for items dispatched by its third party sellers, who are often currently those selling the larger, more expensive items anyway. [Guardian]

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