Amazon breaks into the field of installment sales.. this is how small payments will be

Amazon is getting into the buy now, pay later arena, as the e-commerce giant is teaming up with Affirm to bring the first-ever installment payment option across the popular e-commerce site.

The two companies said in a statement that the option to buy now and pay later is available For some Amazon customers in the US, with a broader rollout in the coming months.

The partnership allows Amazon customers to split purchases of $50 or more into smaller monthly installments. No late or hidden fees will be charged to consumers.

The partnership is the latest sign of a burgeoning lending space as young consumers turn to these alternative credit lines.

Earlier in August, Square entered the space with a $29 billion deal to buy Australian financial technology Afterpay.

So-called installment loans have existed for decades, and were historically used for large purchases such as furniture.

Online payment players and fintech companies are competing to launch their own version of later payment products for online items.

Affirm is one of the best known installment payment options. It works with more than 12,000 merchants, including Walmart.

PayPal, MasterCard, American Express, Citibank, Klarna, Fiserv, and JP Morgan Chase offer similar loan products.

And Bloomberg reported last month that Apple plans to launch installment lending in partnership with Goldman Sachs.

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