The annual percentage rate (APR) on instalments is at 10.9%.
Barclays has stepped into the buy now pay later (BNPL) world as it brings out instalment payment plans in partnership with Amazon.
Amazon UK said the new product in partnership with the bank known as “Instalments” enables customers to spread the cost of certain purchases over several instalments between 3 to 48 months. Depending on the shopping cart value, customers will be able to choose from the available financing options.
Amazon shoppers can select their choice of instalment plan at the checkout. Customers need to complete an online application and will then receive an immediate response from Barclays if they have been approved or not. They will also be informed of their spending limits.
If approved, the customers will find their reusable credit account added to their wallet and will be available at checkout while shopping on Amazon. This enables users to make repetitive purchases without any need to reapply as long as the consumers remain within their issued credit limit. Monthly instalment payments are automated, which will give shoppers a simple and convenient way to pay on time.
Credit and affordability checks will be done and monthly instalment payments are automated
All of the lendings are fully regulated by the Financial Conduct Authority (FCA). Barclays said it will carry out credit and affordability checks to ensure that the customer is not given access to more credit than they can comfortably afford.
The debt repayments are automated via direct debit and can manage the account directly through the Barclays app, even without an account with the bank.
Both companies first launched this service in Germany last year, and the service was introduced in the UK barely three months after Barclays hired Antony Stephen, head of European payments at Amazon to lead the bank's push into the growing BNPL market.
Ruchir Rodrigues, head of Barclays Cubed & Consumer Bank Europe said, “This is another major step in our ambition to reinvent payments at the point-of-sale (POS) and delight customers. Amazon provides a world-class shopping experience, and this new service gives users a fully reusable payment-by-instalments option, which they can use to spread the cost of purchases over a longer period”.
Rob Levy, head of instalment lending at Amazon UK said, “Every day we strive to innovate on behalf of our UK customers. Instalments is one way we will offer customers flexible options, enabling them to choose to pay now or split the cost of larger purchases into budget-friendly monthly instalments”.
Jes Staley, CEO of Barclays first announced plans to extend the Amazon partnership to Britain in April, saying BNPL was a “fast growing market” for the bank.
APR on instalments is at 10.9%
Barclays said the annual percentage rate (APR) on instalments is 10.9%. However, all the promotional rates and interest-free financing will have a certain period of availability. Barclays assured that there will be no account management fees, late fees, statement fees or any other kind of hidden fees.
The customer must be over 18 years old and have been a UK resident for at least three years to be able to apply for an instalment account.