Citi Introduces Buy Now, Pay Later Option for Amazon Purchases

Need to Know

• Certain Citi credit card holders can now use Citi Flex Pay, which allows the financing of purchases made on Amazon.
• Customers using their Citi credit card on Amazon can select payment options, which range from three- to 48-month terms, at checkout.
• The option is only available on purchases of $100 or more.
• The new tool showcases the continuing rise of ‘buy now, pay later’ options across North America.

Analysis

Shopping on Amazon just became more attractive to Citi credit cardholders as the bank has announced a buy now, pay later financing option for Amazon purchases of $100 or more.

Citi Flex Pay, which the bank announced on August 3, allows existing Citi credit cardholders to pay using installments when they check out on Amazon, with financing available on terms ranging from three to 48 months. While encouraging existing Citi credit cardholders to use their cards when shopping online, the Amazon partnership may encourage more large purchases on Amazon—a win-win.

“We’re thrilled to announce that eligible existing Citi cardmembers who have made a recent purchase on Amazon using their Citi card and have a cart of $100 or more now have the option to seamlessly finance their Amazon purchase through Citi Flex Pay … at point of sale,” Citi said in a statement.

Customers who use Citi Flex Pay when making Amazon purchases can still pay using points and will still be able to collect on financed purchases. The total purchase amount will be deducted from cardholders’ available credit, but only monthly payment amounts will be due at the end of each billing cycle.

Buy now, pay later options have been rising in popularity for some time, and this interest has only spiked during the pandemic, as consumers are seeking more flexible payment options during a time of financial insecurity. Where previously the function was most prevalent via e-commerce add-ons such as Afterpay and Klarna—companies that market themselves directly to retailers—financial institutions themselves are getting in the consumer-facing game now, too.

Most recently, buy now, pay later company Splitit partnered with Mastercard, having previously signed on with Visa to expand that company’s BNPL capabilities. U.S. finance giant Goldman Sachs, meanwhile, has partnered with MarcusPay for an installment loan program, as the former continues to expand into consumer banking.