Amazon is bidding to woo shoppers from furniture and electricals retailers by offering loans to customers making big-ticket purchases.
The etail giant has launched Amazon Pay Monthly, which gives shoppers the option of spreading payments into monthly instalments on orders more than £400.
Amazon’s loan can be applied to multiple items or single purchases and repayment can be made in monthly instalments for up to four years, depending on the size of the purchase.
The Amazon Pay Monthly scheme charges an interest rate of 16.9% and no deposit is required.
The etailer’s new payment programme is run in conjunction with Hitachi Capital, which also partners with John Lewis on its interest-free credit on furniture purchases.
The monthly payment option is offered to shoppers under the list of payment options at checkout on the etailer’s website. Shoppers are then invited to apply for a loan before an online credit check is carried out.
Amazon’s Pay Monthly offer is the latest in a raft of initiatives from the etailer to increase convenience for shoppers and rival bricks-and-mortar retailers.
Amazon launched a one-hour delivery service across major UK cities late last year and is expanding its range of grocery products with its Amazon Pantry range.
In a statement, Amazon said: “The new Amazon Pay Monthly programme provides our customers with further payment options to suit their needs when shopping on our website, and it is easy, convenient and offers competitive rates and flexible terms.”