Target is offering buy now, pay later options in preparation for the holiday shopping season

Target has become the latest retailer to offer consumers a buy now , pay later ( BNPL) option ahead of the holiday shopping season.

It is understood that more and more retailers are no longer using installment payments, but using payment methods that allow customers to "buy now and pay later." Target announced on October 6 that it has partnered with Sezzle and Affirm to provide consumers with the option of buying now and paying later .

According to the announcement, consumers can use Affirm on Target's website to purchase items worth more than $100 . But consumers must first apply to Affirm before they can use Affirm to pay at Target. At the same time, shoppers can apply to use Sezzle through Sezzle 's virtual card when checking out on Target's website or mobile app . The company said that customers can use the option through Apple Pay and Google Pay and purchase promotional orders and same-day delivery orders through Shipt and other same-day delivery services.

Target said Sezzle will split each order into four "simple, interest-free payments spread over six weeks, with no fees if customers pay on time . "

"With the holidays approaching, Target is making it easy for guests to pay with options that are affordable and within their family budget ," said Gemma Kubat, president of Target's financial and retail services . "Through our partnerships with Affirm and Sezzle, Target is investing in new financial tools to make our shopping experience more flexible and personalized to meet our guests' needs, just in time for the holiday shopping season , " Kubat said in a statement .

In addition to Target, Affirm has worked with a number of other retail partners over the past few years, including Walmart, Amazon, and David’s Bridal. The installment payment platform raised $1.2 billion after going public earlier this year .

Last month, Walmart announced it would abandon its installment payment program in favor of a buy now, pay later option through Affirm , and the New York Times reported in August that Amazon would begin offering the Affirm program for items over $50.

Sezzle has also built its own relationships. Earlier this year, Discover Financial Services invested $30 million in Sezzle and partnered with the installment payment company to offer buy now, pay later options at select merchants in Discover's global network.

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Buy now, pay later

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