Amazon customers in Canada will soon be able to pay for their purchases on the website in smaller, monthly instalments as the e-commerce giant expands its partnership with payments company Affirm north of the border.
Affirm said on Thursday in a press release that purchases on Amazon.ca of at least $50 will be eligible for the pay-over-time option within the next month if customers select the company as their payment method.
Eligibility will be based on a quick approval process and details about the monthly payments, including the repayment timeline, will be displayed prior to checkout, according to Affirm.
"We're always looking to enhance the paying experience for our customers, including how and when they can pay for their orders," said David Williams, vice-president of Amazon Payment Products, in the joint press release.
The repayment timelines range from three to 48 months and the interest rate for simple interest-bearing loans generally starts from 10 per cent and goes up to 30 per cent. Since Affirm approves each transaction individually, the interest rate charged will vary depending on the specifics of each purchase.
The new "buy now, pay later" option comes at a time when the cost of living has surged in Canada, with the inflation rate hitting seven per cent on an annualized basis as of August, and a number of surveys suggest it's taking a toll on household budgets.
A recent Angus Reid poll found that four in five Canadian respondents say they are scaling back their discretionary spending amid red-hot inflation.
Amazon first teamed up with Affirm in August last year to offer the pay-over-time option to customers in America, marking the first time it's partnering with a third-party instalment player.
Affirm's network serves nearly 14 million customers and 235,000 merchants.