Amazon introduces a deferred payment option

Amazon.com has rolled out deferred billing as an option to customers, realizing an agreement made with Bill Me Later in the beginning of 2008.

As the largest online retailer, Amazon's stock is not limited to items that are normally purchased in one lump sum. From a 6.21 carat diamond for $384,000 to full playground apparatus for $35,000, there is demand for financing on Amazon, and an affiliated partnership currently expedites the process.

Bill Me Later provides an open-ended credit plan through CIT Bank designed specifically for online purchases. The company is already used by more than 700 online retailers. and this year's Equity investment from Amazon has secured it an extremely visible position on par with the likes of PayPal.

A user who wishes to make a purchase with Bill Me Later may select that option at checkout, answer several questions (which include entering date of birth, Social Security number, and "E-sign" consent), and have her request approved or denied depending on credit conditions. The option can be assigned to any of the user's shipping addresses, but requires confirmation of identity at the time of purchase to prevent unauthorized use.

Purchases through Bill Me Later are subject to a standard 20% annual percentage rate. The "fine print" also explains that Bill Me Later may share the user's personal information marketing companies, as well as other financial companies (i.e., insurance, banks, and securities brokers).