Amazon introduces Pay Monthly credit option for UK customers

Last year, if you wanted to spend big money at Amazon, your bank account would receive a short, sharp shock as the money was swiftly pulled from your cash pile and into Amazon’s. This year, that no longer need be the case: the retail giant has announced a new loan scheme in collaboration with Hitachi Capital, meaning that your money will be taken in smaller, less painful increments over a period of up to four years.

Amazon introduces Pay Monthly credit option for UK customers

There are plenty of caveats, of course. The first is that the loan is subject to an APR of 16.9%, meaning that you’re paying considerably more for the convenience of staggered payment. If, for example, you were buying a £1,999.99 television, you’d end up paying £2,765.11 in total over four years.

It’s also only available for items sold and dispatched by Amazon, meaning third-party goods are out. You need to spend at least £400 to qualify for 24 months, £750 for 36 months and £1,000 for 48 months, although it doesn’t all need to be on a single item if you find yourself craving several hundred pounds’ worth of elastic bands without the funds to back up your desire.amazon_loan_scheme_uk

There’s no deposit involved: the first payment is the beginning of your monthly installments. Simply select financing at the checkout for a qualifying order, and then see if you pass the credit checks for a loan of one to four years.

The company assisting with the financing options is Hitachi Capital, which already provides a similar service at John Lewis. Gerald Grimes, the managing director of Hitachi Capital Consumer Finance, told The Guardian: “Our new trial with Amazon is all about giving people the fastest and most seamless experience when it comes to point-of-sales credit.”

“Amazon is famous for its ‘1-Click’ service, allowing you to place an order literally at the click of a button with prestored payment details and delivery addresses. This is part of boosting that customer experience and could signal huge changes for the online retail industry,” he added.

READ NEXT: How to cancel Amazon Prime

Images: George Grinsted and Mike Seyfang used under Creative Commons

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