Amazon Offers Shoppers Options of Paying Later
Amazon.com is now giving its shoppers the option of ordering goods and paying for them later with the addition of the Bill Me Later payment service to the website.
The e-tailer first announced last December that it planned to offer the Bill Me Later service. Amazon.com also made an investment in the company at that time.
“We are committed to providing our customers with the greatest possible selection, whether that’s in our 40+ stores, or in the selection of payment methods we offer on the site,” said Matt Swann, vice president of payments at Amazon.com, in a press release. “We believe our customers will appreciate having another convenient payment option.”
The Bill Me Later service enables consumers to shop online without using a credit card providing Amazon with the opportunity to attract new consumers who have not shopped the website before or perhaps used it sporadically.
Avivah Litan, vice president and distinguished analyst at Gartner, said, “Adding alternative payments is of widespread merchant interest as they work to offer consumers additional payment options. Our research shows high consumer interest in these types of alternative online payment instruments and evidence that they find them secure and convenient.”
Discussion Questions: How big an opportunity does the Bill Me Later type of customer represent for online retailers? What will the Bill Me Later service mean in practical terms for Amazon.com? Will Amazon’s investment in Bill Me Later negatively affect it in dealing with other online merchants?
- Amazon.com Introduces Bill Me Later as New Alternative Payment Option – Amazon.com/Bill Me Later, Inc./Business Wire