Amazon's move to allow its customers to pay monthly on more expensive purchases significantly eased the nagging problems of buyers, who wish to buy certain items that are over their budget.

According to TechnoBuffalo, Amazon is introducing the Pay Monthly program that aims to provide sustainable payment terms to purchases exceeding $589. The Pay Monthly program of Amazon is reported to be provided by Hitachi Personal Finance and it will join similar programs such as Tesco and John Lewis. Customers who wish to avail of this service will have to undergo credit checking, a normal procedure when applying for credit. According to Amazon, it usually takes about a minute before a customer is deeme qualified or not.

 

Customers who normally apply for such payment terms indulge those buying electronic items such as smartphones, computers and televisions. The monthly payment terms can stretch from two years to up to four years of installment. However, take note that there is a 16.9 percent interest rate for every purchase using the monthly payment.

In a statement given by Amazon, the company said, "If you've been approved for the installment loan provided by Hitachi Personal Finance, and placed your order on Amazon.co.uk, we'll prepare and dispatch the items in your order. If the items you purchased in your order are dispatched in multiple deliveries, your first payment will be due 30 days after the last package is dispatched."

Amazon is not the first retailer to offer such payment terms, but because they have more expanded choices in terms of items for sale, more customers are bound to use this type of payment in the popular online store.

According to EndGadget, Amazon customers who wish to avail of the Pay Monthly program don't need to shed some cash as a deposit. In fact, their first payment after 30 days will serve as their initial deposit for the product they bought. Currently, products that are directly sold and shipped by the online store are eligible for the Pay Monthly terms.

Amazon offers thousands of premium items online, some with value-for-money tags while some need more than just a one-time payment to ease the burden of shedding too much cash. The Pay Monthly program will heighten the online store's presence in online shopping.

Have you tried Amazon's latest Pay Monthly program? What items are you planning on buying that may lead you to use this new Amazon payment terms?