NEW YORK—Fintechs are having an impact on the design of credit card plans, a new report indicates.
More credit cards are offering flexible payment plans for customers who want to spread out the cost of expensive items or unexpected expenses over several months, The New York Times reported.
Card companies say the options make it easier for their customers to borrow money, and to manage their monthly cash flow, the Times reported.
“The new options are also a response to the rise of financial technology start-ups, like Affirm and Afterpay, which work with online retailers to offer shoppers quick approval of installment loans at the moment of purchase,” the Times said.
Amazon also offers some customers no-cost monthly installment options, which it charges to the credit card on file with an individual’s account, the Times noted.