Amazon Pay Later is a service provided by Amazon that enables customers to make purchases on their platform and defer the payment to a later date. In this review, we will explore the advantages and disadvantages of Amazon Pay Later, scrutinizing whether it truly offers an interest-free loan or if it is merely a marketing gimmick. By delving into the details, we aim to provide a comprehensive analysis of this payment option.

What is Amazon Pay later Concept?

Amazon Pay Later is a convenient method to quickly borrow money for buying things on Amazon. You can choose to pay back the amount next month or in installments using EMI. The process is completely digital, and only takes a few minutes to set up.

You are not required to give your credit card information. After the one-time setup, you can use Amazon Pay Later during checkout on Amazon.in & pay later next month or over a period of 3-12 months through EMIs.

You can easily track your purchases, repayments & credit limit history through a dashboard.

Amazon Pay Later is offered by Amazon Pay (India) Private Limited in partners with Axio and IDFC FIRST Bank.

Is it Amazon Pay Later Safe?

Amazon Pay Later is considered safe to use as it is offered by Amazon, a trusted and reputable e-commerce platform.

Amazon Pay Later itself can be considered safe in the sense that it’s a legitimate service offered by Amazon partnered with reputable lenders like Axio and IDFC FIRST Bank. Your information goes through Amazon’s secure systems and the lenders’ established processes.

Amazon does not provide Pay Later loans directly. Instead, they collaborate with banks or financial institutions to offer loan services.

However, like any credit product, using Amazon Pay Later responsibly is key.

Here’s why you should still be mindful:

• Potential for Debt: Late or missed payments can lead to fees and accumulating debt.
• Credit Impact: Missed payments can negatively affect your credit score.
• Temptation to Overspend: Easy access to credit can lead to unplanned purchases.

How to register Amazon Pay Later?

To register for Amazon Pay EMI, follow these simple steps:

• Sign up for Amazon Pay Later by completing the one-time setup process, which can be found on the Amazon Pay Later page on Amazon.in.
• Once the setup is complete, the Amazon Pay Later option will be available during checkout on eligible items.
• Select the Amazon Pay Later option at checkout, and choose to pay later next month or over EMIs ranging from 3 to 12 months.
• Review and confirm the purchase and the amount you will be repaying over time.
• Track your purchases, repayments, and credit limit history through the Amazon Pay Later dashboard.

Who is eligible for Amazon Pay Later

The eligibility criteria for Amazon Pay Later can vary depending on the lending partner, but generally, it includes the following:

• The customer must be an Indian resident with a valid Indian mobile number and email address.
• You must be 23 years of age or above
• The customer must have an active Amazon.in account in good standing.
• The customer must meet the lending partner’s credit criteria and pass a credit check.
• The customer must have a Aadhar ID and PAN card.

Is Amazon Pay Later Interest Free?

If you choose to pay the full amount next month, you won’t be charged any interest. However, if you choose to pay in installments, you will need to pay interest charges.

Customers who do not settle their bills on time may be charged late fees.

Late Payment Fee

Advantage of Amazon Pay Later

There are several advantages of using Amazon Pay Later:

1. Convenience: Amazon Pay Later allows customers to make purchases on Amazon.in and pay for them later, rather than at the time of purchase. This is particularly useful for customers who want to make a purchase but may not have the funds available at the time.
2. Flexibility: Amazon Pay Later offers a range of EMI options, from 3 to 12 months, which allows customers to budget for their purchases and pay them off over time.
3. Easy to use: The process of signing up for Amazon Pay Later is quick and easy, and can be completed entirely online. Customers can also track their purchases, repayments, and credit limit history through a user-friendly dashboard.
4. No credit card required: Sign-up process for Amazon Pay Later does not require a credit card, which makes it accessible to a wider range of customers.
5. No Hidden cost: Amazon Pay Later does not charge any interest or hidden costs, customers only have to pay the amount of the purchase. (Remember EMI option charge high interest)
6. Wider Coverage: Amazon Pay Later is available on a wide range of products, including fashion, electronics, home, and kitchen, and also available on various sellers.

Disadvantage of Amazon Pay Later

There are also some disadvantages of using Amazon Pay Later:

1. Credit check: To be eligible for Amazon Pay Later, customers must pass a credit check, and those with poor credit may not be approved.
2. Late fees: If customers miss due payment, they may be charged a late fee.
3. Credit limit: Customers have a limit on the amount they can spend using Amazon Pay Later, and if they exceed this limit, they may not be able to make further purchases using this payment method.
4. Not available for all products: Amazon Pay Later may not available for all products on Amazon.in, and customers may need to choose a different payment method for some items.
5. Limited to Amazon: Amazon Pay Later can only used on Amazon.in, so customers will need to use a different payment method for purchases made outside of Amazon.
6. No cashback or rewards: Amazon Pay Later does not offer cashback or rewards like some other credit card or cashless payment methods.

Amazon Pay Later limit:

Your Amazon Pay Later limit is determined by various factors, including your creditworthiness and purchasing history. The assigned limit indicates the maximum amount you can spend using Amazon Pay Later.

Amazon Pay Later option not showing:

If you are unable to see the Amazon Pay Later option during checkout, it could be due to various reasons.

Ensure that you meet the eligibility criteria and that the selected product is eligible for Amazon Pay Later. If the issue persists, contacting Amazon customer support would be helpful.

What happens if not pay Amazon Pay later?

If you do not pay your Amazon Pay Later balance, there could be several consequences. Here are some possible outcomes:

Late fees: If you don’t pay your bills on time through Amazon Pay Later, you might have to pay additional fees. Please refer to the late payment table above for more information on these fees.

Bad Credit Score: If you don’t pay and Amazon Pay Later reports it to (CIBIL) credit agencies, it can hurt your credit score. This might make it harder for you to borrow money or get credit cards in the future.

Debt collection: If you keep not paying, Amazon Pay Later might try to get the money back through collection efforts. They could contact you, work with collection agencies, or even take legal action.

Limits on your Amazon Pay Later: If you don’t pay or break the rules, Amazon Pay Later might stop you from using their service or restrict your account.

It’s important to read the terms and conditions of Amazon Pay Later to understand what might happen if you don’t pay.

My take on this point –

If you deliberately choose not to repay a loan, it would be a significant mistake. It can have long-lasting consequences, affecting your ability to secure future loans. Non-payment of loans can result in your outstanding dues being reported to credit agencies like CIBIL.

When you apply for any type of loan, lenders typically check your credit score and payment history. If your reputation is tarnished due to non-payment, it becomes difficult to obtain loans as lenders may consider you a high-risk borrower.

Lenders can provide you with a loan based solely on your Aadhaar and PAN details. They have access to your personal information. If you default on the loan, lenders have strategies in place to recover the outstanding amount.

Amazon Pay Later Customer Care

Lending Partner Contact Detail:

Axio – Call Center – 080-68075001 – Email – ask@axio.co.in

IDFC First Bank – 1860 500 9900 – Email -banker@idfcfirstbank.com

Bottom Line

In conclusion, Amazon Pay Later is payment option for customers who want to make purchases on Amazon.in & pay for them later.

Credit limit may be lower than what customers would get with a traditional credit card or loan, and the cost of the EMIs may be higher.

Overall, customers should carefully consider their financial situation and assess whether Amazon Pay Later is the right payment option for them.

Keep in mind that Amazon Pay Later does not offer interest-free EMIs; it involves interest charges. Sometimes, certain providers offer the option of Non-Cost EMI.

FAQs

How to increase Amazon Pay Later limit?

To increase your Amazon Pay Later limit, make regular and timely payments. By demonstrating responsible payment behavior and maintaining a good credit history, you may become eligible for a higher limit in the future.

How to close Amazon Pay Later?

To close your Amazon Pay Later account, you need to clear all outstanding dues. Once you have paid off the entire balance, your account will be considered closed.