With the service, Amazon customers can split the total cost of purchases of USD 50 or more into monthly payments and are told the total cost of the transaction up front. Affirm said there are no late fees. Affirm said the two companies are testing the service with a group of customers and that it will be more broadly available in the coming months.
As USA Today explains, instalment plans are popular with retailers because they encourage customers to spend more money. And they enable customers with insufficient funds or credit at the time of purchase to walk out of a store – or check out online – with the item they want.
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