American Express (Amex) has introduced a new way for its card members to pay for things.
Platinum card holders can now join Green and Gold members with Amex’s buy now, pay later (BNPL) option, dubbed Pay It Plan It.
The feature allows cardholders to create monthly payment plans with a fixed monthly fee of up to 1.33 percent and no interest, carry a monthly balance with interest or pay their bill in full.
With Pay It Plan It features, Amex card members have more ways to pay for purchases, accessible from the Amex app, the New York-based financial services corporation said.
In addition to these new payment options, with no preset spending limit, cardholders still have purchasing power that adapts based on purchase, payment and credit history.
Pay It on the Amex mobile app allows users to quickly pay for purchases under $100, throughout the month while Plan It lets members split up larger purchases of $100 or more into equal monthly payments with a fixed fee of up to 1.33 percent and no interest.
In this way, Amex said card members know upfront how much they’ll pay each month. Card members do not have to apply for a plan, they just click on an eligible purchase in the Amex app, or on their online account and choose to Plan It.
Since the launch of Pay It Plan It in 2017, Amex cardholders have created nearly 5 million payment plans, totaling nearly $4 billion, the company said. Millennial and Gen Z comprise 44 percent of the plans created. The average BNPL purchase is $789.
In separate news, Citi launched its Flex Pay option to allow its card members to buy products on Amazon, the financial services giant said Monday (Aug. 3).
The BNPL plan, in partnership with Amazon, allows Citi card users to choose from a variety of plans. There are 3, 6, 12 and 48-month options. It ranges from three equal monthly payments on purchases of $100 or more with a 6.74 percent promo rate to 36 or 48 equal monthly payments on purchases of $1,200 or more with 8.74 percent promo rate.
In July’s Buy Now, Pay Later Tracker, PYMNTS reported demand is rising for flexible payment options that allow consumers to make large purchases without incurring interest or debt.
About 30 percent of U.S. consumers have BNPL accounts. They allow consumers to delay payments for items they take home instantly. It’s been a way for shoppers to stretch their dollars as the COVID-19 pandemic continues.
(This article has been updated.)