Retail giant introduces payment plans on select items
Amazon is always coming up with new ways to change commerce, and now the giant is offering a Amazon Layawaya payment program that makes big purchases a little easier — in a context of high inflation and just in time for expensive back-to-school shopping.
Layaway makes sense for Amazon: More and more people are turning to programs based on installment plans, especially through companies like Afterpay, Affirm or Klarna. This makes more sense to some than a credit card, because you pay off the cost of the item over several months, versus the full purchase balance the following month.
set aside, as Kiplinger points out, has been a popular MO for Christmas gifts, farm tools and more since the Great Depression, and Amazon’s own layaway program appears to be aimed at capitalizing on the installment trend while staying closer to the original layaway format. There’s a difference from recent fad installment plans: instead of get now, pay later (as with Affirm, et al.), you pay for the item and get it later.
Amazon Layaway promises no credit checks, no cancellation fees, and no interest charged on its layaway purchases, which are currently available on select items (you’ll see which are available clearly marked) in categories such as:
Just to name a few. You deposit 20% deposit at checkout, which locks in the price and reserves your item in the warehouse. Then you make four equal payments over two months – pay back faster and yes, you’ll get it faster too.
The only downside: If an item goes on sale, the price you locked in is still the price you’ll pay — Amazon won’t make any price adjustments.
Call it old fashioned, but the ‘get now, pay later’ model is all about immediate gratification, there’s something to be said for saving for something – and being able to plan financially for big purchases too.
Make sure you have a Prime membership – if not, sign up here — and learn more about the new layaway program here.