No interest will be charged if a user pays the premium due within one month
Amazon Pay has partnered with lending tech startup Capital Float for the service
Flipkart and Paytm already offer similar lines of credit
Amazon India’s digital payment service, Amazon Pay, has launched an instant credit service – Amazon Pay Later – to mitigate the impact of the ongoing economic downturn on future sales. Launched in beta, Amazon Pay Later service is now available for a number of users, with the company expected to roll out to everyone soon.
By using the service, people will have the option of paying the full amount owed the following month. No interest will be charged if a user pays the premium due within one month. Amazon Pay Later is a renowned version of Amazon Pay EMI.
Users must complete the Know Your Customer (KYC) procedure by providing a PAN card and Aadhaar details to use the service. However, people cannot use the Pay Later service to buy precious gold, silver or jewelry as their prices fluctuate every day. Additionally, users cannot purchase an Amazon Gift Card or transfer funds to the Amazon Pay balance through this line of credit.
Users will have the option to pay the amount in three installments if the order amount exceeds INR 3,000. For orders over INR 6,000, users will have the option to repay the amount in six months while people can select nine or 12 month repayment options for their orders with a value of INR 9,000 or more. . To use this EMI option, monthly interest is charged based on the amount.
Support from the Capital Float
For newly launched financial services, Amazon Pay has partnered with lending tech startup Capital Float. The Bengaluru-based startup will facilitate short-term loans that will be provided to users against their orders placed on Amazon.
Amazon Pay has made it mandatory for anyone wishing to avail of the line of credit service to register with Capital Float. Additionally, users will need to authorize Capital to withdraw the amount due from the linked savings account for one year.
Amazon Pay later to take Flipkart, Paytm Mall
While Amazon launched the Pay later service now, its main competitors Flipkart and Paytm were already offering a similar line of credit to users. For example, Flipkart Pay Later offers an initial line of credit of INR 5,000 to its users for the purchase of products in the online marketplace.
Meanwhile, Paytm offers a similar line of credit that people can use to purchase products on Paytm Mall. Users can also pay their bills on the Paytm app with this ease.
Other players who offer later payment options include LazyPay from PayU, Pay Later from ICICI Bank, Simpl, SlicePay, KrazyBee, among others.