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Amazon is working on a ‘buy now, pay later’ service with Affirm

By Sanuj Bhatia August 30, 2021, 2:30 am
amazon affirm buy now pay later

Amazon is entering the buy now pay later space with Affirm. The company announced in a statement that select users in the United States will start seeing the new option to pay in a series of monthly installments on purchases of $50 or more. The company plans to test the service with a limited number of users right now, and then expand to all the users in the future.

Although users will see the buy-now-pay-later option during checkout on Amazon, it’s not like Amazon is providing the credit. Amazon is just adding an option to pay via Affirm, one of the leaders in the BNPL space, and the whole BNPL transaction will be handled by the other firm then. Affirm already has 12,000 merchants that offer its BNPL services, like Peloton and Walmart.


The company says “consumers will not be charged any late or hidden fees.” In an email to Engadget, Amazon said that the customers will have to agree to a soft credit check at checkout. The interest rate will depend upon the user’s purchase history and the credit history. The installment plan will be offered on the basis of the purchase price. “Depending on the customer and their order value, they might be offered anywhere from a three-month to a 48-month payment plan, with interest ranging from 0% to 30% APR,” says the report.

Moreover, in a statement to Engadget, an Affirm spokesperson said that whatever interest consumers pay related to these loans, they agree to those rates upfront, and that interest does not compound.

More and more tech giants are entering the buy now pay later space. Apple is also said to be working on a pay-later service for Apple Pay, and now Amazon as well. What are your thoughts on Amazon offering the buy now pay later service? Do you use these services for buying products? Let us know in the comments section below!


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