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Barclays and Amazon team up to launch BNPL service

Emma Lunn
Written By:
Emma Lunn

Amazon and Barclays will offer a buy now pay later (BNPL) payment option called Instalments by Barclays.

The payment method will allow Amazon customers to spread the cost of certain purchases of more than £100 over several equal instalments between three and 48 months.

Customers can pay for future additional purchases through instalments without needing to reapply, as long as they stay within their spending limits. Monthly instalment payments are automated, which Barclays says will give shoppers ‘a simple and convenient way to pay on time’.

The reusable credit account can be used on millions of products, including those from thousands of small and medium businesses selling on Amazon.

First-time users will select their choice of instalment plan from available term options at Amazon checkout, complete an online application, and in most cases they’ll receive an immediate response from Barclays letting them know whether they’ve been approved, and setting out their spending limits.

All lending is fully regulated by the Financial Conduct Authority (FCA). Barclays says 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.

Payments are automated via Direct Debit, and the account can be managed directly through the Barclays App, even if the customer doesn’t bank with Barclays.

The headline APR on Instalments by Barclays will be 10.9% for online purchases on Amazon, although promotional rates and interest-free financing may be available at times. Barclays says there are no account management fees, late fees, statement fees, or other hidden fees.

Customers need to meet certain eligibility requirements to apply for an Instalment account. For example, they need to be over 18 and have been a UK resident for at least three years.

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. This is a simple and transparent service from Barclays that automates monthly payments, providing greater comfort for customers making bigger purchases.”

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 and delight customers. Amazon offers 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.”