Amazon (NASDAQ:AMZN) is now offering a more – loan-like product for its credit cardholders, according to the company. In a release, Amazon said that Prime Visa and Amazon Visa holders may pay in equal monthly payments when checking out online using Amazon Pay.
Importantly, Amazon said that cardholders may pay 0% APR on six and 12-month equal payments on purchases of $50 or more.
Typically, a BNPL or buy now pay later provider will offer no interest payments for a short period of time. A 12-month period may help encourage more users and purchases by consumers that hold Amazon cards.
Omar Soudodi, Director of Amazon Pay, said they are always looking to offer customers more choice and convenience regarding payments.
“We’re excited to offer the millions of Prime Visa and Amazon Visa cardmembers the option to split their payments across six or 12 months at 0% interest when shopping with Amazon Pay. What’s more, Amazon Pay merchants now have yet another way to seamlessly reach new customers, offering them more choice and convenience in how they pay.”
The payments service is said to be available to “tens of thousands” for participating online retail sites.
Similar to other digital wallets, Amazon Pay uses information stored in a customer’s Amazon wallet, so customers do not need to provide information each time during a purchase.
Amazon said that there are no additional fees or integration required in order for merchants to offer this payment option to their customers.
Amazon, like other big tech firms, has been pushing deeper into Fintech over time – a natural step in extending their services. The 0% interest is throwing down the gauntlet to both established financial services as well as competing Fintechs.