Amazon UK offers pay-monthly scheme to customers

US online giant Amazon has launched a new payment option for its UK customers, which lets them pay for more costly items in instalments.

In a move which could see the online retailer win over customers from high street heavy weights such as John Lewis, Amazon UK new monthly payment choice, Amazon Pay Monthly, is available on orders of more than 400 pounds and can include multiple products. In order to qualify for the monthly payment scheme, users have to pass a online credit check, but do not have to pay a deposit.

Once approved, customers then have 30 days to make their first payment after the item is shipped. Only products directly sold through Amazon are eligible for the payment option, items sold by third parties are not included. The loan can be spread over two to four years, depending on the amount of the purchase, with Amazon UK charging interest at an advertised rate of 16.9 percent.

The UK is the said to be the first country where Amazon is offering to option to pay instalments, although customers in the US are able to purchase items on credit via an Amazon store card, reported the Guardian. "The new Amazon Pay Monthly programme provides our customers with further payment options to suit their needs when shopping on our website, and it is easy, convenient and offers competitive rates and flexible terms," said Amazon UK in a statement.

Amazon Pay Monthly is the latest customer initiative to be launched by the online retailer over the past year, following on from it's one-hour Prime delivery service introduced to large cities around the country in 2015.