Wondering what are the benefits of Amazon Pay later? We have got you covered. Amazon Pay Later is a payment feature introduced by Amazon that allows customers to buy products instantly and pay for them later, usually by the next month. Much like a credit card, it provides an instant credit limit to shop on Amazon today and make payments against your purchases later.
However, unlike credit cards, which can be used elsewhere, Amazon Pay Later can only be used to purchase on Amazon’s e-commerce platform. In this article, we will look closely at some of the key benefits of using Amazon Pay Later. We will also outline the eligibility criteria for this payment option and provide some responsible usage tips for customers.
What Is Amazon Pay Later?
Amazon Pay Later is a revolving credit line enabling you to buy products instantly on Amazon without any upfront payment. You can then pay for your purchases in monthly instalments by the payment due date.
If you choose the EMI option, your repayments are spread over several months at defined interest rates. Key differences from credit cards:
- Usage is restricted to Amazon only.
- No physical card was provided.
- Instant credit decision and limit.
- No credit card is required to start using.
Now that we know what Amazon Pay Later is let’s look at the major benefits that make it an attractive payment option for regular Amazon customers.
What Are The Benefits Of Amazon Pay Later?
1. Flexible Payments
One of the biggest benefits of Amazon Pay Later is the flexibility it offers for making payments against purchases on Amazon’s platform.
- Pay next month for this month’s shopping: You can buy products instantly without any upfront payment and pay for them by next month. This helps manage cash flows better.
- EMI option: For expensive purchases, you also have the option to convert the payable amount into EMIs at defined interest rates and repay over several months. This makes high-value shopping more affordable.
2. Instant Credit Access
Another great benefit of Amazon Pay Later is the quick and easy access Amazon Pay Later provides to instant credit:
- Get instant credit limit: Based on your eligibility, you can get approval for a credit limit instantly, which you can start using for shopping. Limits can range from ₹1,000 to ₹60,000.
- No credit card required: You can get this revolving credit line without needing to have a credit card. Easier eligibility makes it accessible to more customers.
3. Seamless Experience
Amazon Pay Later makes your shopping experience hassle-free:
- Smooth integration: It is directly integrated with Amazon’s checkout process, allowing you to select the Pay Later option and complete purchases smoothly.
- Easy tracking: You can conveniently track your purchases, credit limit, repayments due, and payment history through your Amazon account dashboard.
4. Low Costs
Another benefit of Amazon Pay Later is that Amazon Pay Later does not charge you a fee, whereas most credit cards do:
- Processing or documentation fees.
- Cancellation or foreclosure fees.
- Prepayment penalties.
Transparent interest rates: If you opt for EMIs, interest rates ranging from 0-18% p.a. apply based on product category and tenure chosen. But no hidden charges.
Amazon Pay Later Eligibility Criteria
To start using Amazon Pay Later, you need to meet the following basic eligibility criteria:
- Have a valid PAN card.
- Link bank account from an approved list of banks.
- Provide officially valid address proof.
- Have a verified mobile number linked to your Amazon account.
Additionally, your credit score is evaluated based on which the final credit limit is decided:
- Typically, you need a credit score of 750+.
- After evaluating your creditworthiness, Amazon’s lending partners, like IDFC FIRST Bank, make the final decision.
Responsible Usage Tips
While Amazon Pay Later offers some attractive benefits, customers should use it responsibly by keeping these tips in mind:
- Avoid overspending: The easily available credit line may tempt you to buy things you don’t need. Avoid splurging and building debt.
- Make timely payments: Late payments lead to fees/penalties and negatively impact your credit score.
- Monitor credit utilization: Keeping your revolving credit line fully utilized will impact your credit rating. Maintain prudent utilization levels.
- Read all terms: Understand applicable interest rates, charges, and billing cycles to ensure transparency and avoid surprises.
Amazon Pay Later offers customers several benefits, like flexible payments, quick credit access, and a seamless checkout experience. The eligibility criteria are fairly straightforward. However, customers should evaluate suitability carefully based on spending habits and repayment capacity. Responsible usage by paying on time and not overspending is vital.