What is Amazon Pay Later?

What is Amazon Pay Later?

Amazon Pay Later is a digital credit service offered by Amazon in partnership with select lending partners like IDFC FIRST Bank and axio. It allows you to make purchases on Amazon.in and pay for them later, either next month or in equated monthly installments (EMIs) ranging from 3 to 12 months. Think of it as a convenient way to spread out your payments for larger purchases or bridge the gap between your paycheck and that must-have item.

Here’s how it works:

  1. Eligibility: Check if you’re pre-approved for Amazon Pay Later. This happens automatically if you have an Amazon account and meet certain criteria set by the lending partners.
  2. Activate the service: If eligible, complete a one-time setup process within the Amazon app or website. This involves basic KYC verification and accepting the terms and conditions.
  3. Shop with ease: During checkout, choose “Amazon Pay Later” as your payment method. You’ll see the available credit limit and your options for repayment (next month or EMI).
  4. Manage your repayments: Track your purchases, credit limit, and repayment schedule within your Amazon Pay account. Ensure timely payments to avoid late fees and interest charges.

Benefits of using Amazon Pay Later:

  • Instant credit: No need for separate credit card applications or lengthy approval processes.
  • Convenient payment options: Choose to pay next month or spread out your payments in EMIs.
  • Increased purchasing power: Access additional credit to make larger purchases without straining your budget.
  • Easy to manage: Track everything seamlessly within your Amazon account.

Things to keep in mind:

  • Interest rates: Amazon Pay Later does accrue interest on EMI purchases. The interest rate varies depending on your creditworthiness and loan tenure.
  • Eligibility: Not everyone is automatically eligible for Amazon Pay Later. Factors like your existing credit score and repayment history might influence your eligibility.
  • Responsible usage: Like any credit facility, use Amazon Pay Later responsibly and avoid overspending. Make timely repayments to maintain a good credit score.

Alternatives to Amazon Pay Later:

  • Debit cards: Use your debit card for immediate purchases without incurring interest.
  • Credit cards: Opt for regular credit cards if you plan to pay back the entire amount within the grace period to avoid interest charges.
  • Personal loans: Consider personal loans for larger purchases requiring longer repayment periods. Compare interest rates and fees from different lenders before choosing one.

Remember: Amazon Pay Later can be a convenient tool for managing your finances, but it’s important to use it responsibly and understand the associated costs. Always prioritize your budget and repayment abilities before making any purchase decisions.

So, is Amazon Pay Later right for you? Evaluate your needs, understand the terms and conditions, and use it wisely to make your online shopping experience even more convenient and flexible.

What is Amazon Pay Later?


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