Amazon launches instant credit line - Pay Later

Amazon said customers will get access to instant credit that they can use to buy products

Amazon launches instant credit line - Pay Later

BENGALURU: Amazon Pay has launched ‘Amazon Pay Later’, a service that will extend a virtual line of credit to eligible customers shopping on It has partnered with digital lending startup Capital Float and Karur Vysya Bank for this offer.

Amazon said its customers will get access to instant credit that they can use to buy products ranging from daily needs and groceries to electronics and clothing, as well as to pay their bills on the website.

It will also extend to purchases such as home appliances and electronic gadgets once e-commerce deliveries of non-essentials are allowed by the government, said an Amazon spokesperson.

“We are always looking for ways to improve our customers’ payments experience on and make purchases more affordable. Amazon Pay Later is a unique service that will help customers expand their access to credit and experience the most convenient option of making payments. Amazon Pay later empowers our customers to better manage their monthly spends," said Mahendra Nerurkar, CEO, Amazon Pay India.

Amazon had been piloting the service the last three months, having made it available to a few customers. After the launch, Amazon Pay Later will be extended to tens of thousands of eligible customers who tend to be also loyal to the platform.

“We have a deep partnership with Amazon and we have been working on this checkout solution with them for some time. Currently, this service is available to consumers buying essential services like groceries, but moving forward this will extend to electronics and other non-essential goods as well," said Sashank Rishyasringa, co-founder and managing director, Capital Float.

Amazon Pay Later also has the option for users to set up auto-repayment to settle monthly bills or EMIs through the bank of their choice. Customers also have an option to repay all outstanding amounts in one go at no additional fee. Based on usage and repayment behaviour, customers will also be able to enhance their credit limit.

Flipkart, Amazon’s arch-rival in India, launched its Pay Later offering to consumers back in 2017. Although the service was limited to Flipkart and Myntra platforms, the Walmart-owned Flipkart extended this service to digital payments platform PhonePe earlier this year for recharges and bill payments.

Amazon and Flipkart are not the only players that have a 'pay later' product. PayU India’s checkout financing product, LazyPay, Ola’s credit line solution Ola Postpaid, and startups, including Simpl, have similar products.