January 11, 2016
British shoppers using Amazon now have the option of paying for some items in monthly installments. The company announced a program that offers a monthly payment option on purchases in excess of £400 ($581). The program enables consumers to establish a line of credit offered by Hitachi Personal Finance. Consumers making eligible purchases can apply immediately for the line of credit, which, according to reports carries an APR of 16.9 percent. Payments are made by direct debit from a bank account.
Amazon currently does not offer such a program in the U.S., although it is offering installment payments for Kindle devices and Fire tablets. While installment payments are not common for e-commerce purchases in the U.S., they are more popular in other markets and some installment-payment solutions are trying to gain a foothold in that country.