In a move aimed at enhancing customer convenience and choice, Amazon has announced an expansion of its equal monthly payment program for Prime Visa and Amazon Visa cardholders. This development allows cardholders to utilize installment payments not only on Amazon's website and mobile app but also at tens of thousands of other businesses. The initiative, which was revealed on August 15th, has been met with enthusiasm from both consumers and merchants.
"Amazon is always looking to offer customers more choice and convenience when it comes to paying for their order," says Omar Soudodi, Amazon Pay director. "We're excited to offer millions of Prime Visa and Amazon Visa cardmembers the option to split their payments across six or twelve months at 0% interest when shopping with Amazon Pay" he further added.
This move reflects Amazon's commitment to adapting to evolving consumer preferences. It also aligns with broader trends in the payment industry. According to research by PYMNTS, consumers are increasingly gravitating towards installment payment options. This growing interest in 'Buy Now, Pay Later' (BNPL) services is driven by a desire for better financial management.
Charlie Youakim, CEO of Sezzle, a BNPL provider, explains, "BNPL is a budgeting tool, and budgeting is top of mind." Many consumers see BNPL as a means to manage cash flow more effectively than as a traditional credit instrument.
The appeal of installment payments lies in the time value of money. It's a concept that has been resonating with consumers for generations. Delaying payment, even without incurring interest, provides an opportunity to put their money to work elsewhere before settling their bills. This principle holds true whether someone is considering BNPL options or a credit card for the first time.
Amazon's partnership with Citi earlier this year to introduce Flex Pay, allowing Citi credit card customers to pay over time in a digital wallet, was an early indication of this trend. "Customers want flexible payment options, and merchants want to offer that flexibility but don't always have the resources," notes Soudodi. This partnership exemplifies a win-win scenario for both customers and merchants, offering a new, convenient way for customers to pay and giving merchants the opportunity to cater to a wider audience.
The extended equal monthly payment program isn't limited to Amazon purchases. Cardholders can now enjoy this option when making $50 or more purchases at various businesses, including Lenovo, Tennis Express, and Authentic Watches. It represents a significant expansion of Amazon's payment ecosystem, opening up new avenues for consumers to manage their expenses and for merchants to tap into a broader customer base.
As consumers continue to seek financial flexibility and budgeting tools, the popularity of installment payment options like BNPL is expected to rise. Amazon's move to extend this program beyond its platform reflects a commitment to staying at the forefront of evolving payment trends, ultimately delivering more convenience and choice to its customers.
