6 ms·

> It allows any purchase between $35 and $1,000 made through Microsoft Edge to be split into four payments over a six-week period. > While the service is being

• scottcodie 5y ago
  The interest on $35 is only $4 since it is a flat rate not a reoccurring rate.
  • greenshackle2 5y ago
    Right. It's a fixed term loan. Not revolving credit. These 2 loans are mathematically equivalent: $35 at 0% APR, $4 fees, 6 weeks fixed term $35 at 123% APR, $0 fees, 6 weeks fixed term You could argue the high APR loan is worse because interest will be compounding if you miss your payments. But I'm guessing the Zip loan also has late payment fees.
    • themitigating 5y ago
      But people are probably going to use it for larger amounts where that flat fee would equal a much lower apr.
      • PeterisP 5y ago
        An APR much lower than 123% is still outrageously high for purchases of $100 or $200 - but in any case, the browser should not get involved in this at all.
    • scottcodie 5y ago
      Sure, and generally the shorter the term the larger the APR. Makes it sound a lot scarier, huh?
• ourmandave 5y ago
  Damn, even the Payday Loan and Rent-to-Own guys are taking notes.
• yesplorer 5y ago
  Why does anyone need a payment plan for a $35 item though?
  • smt88 5y ago
    Most people in the US live paycheck to paycheck. High-interest, short-term loans on small principals to the working class have been around for a long time.
  • metaltyphoon 5y ago
    As crazy as it seems, in Brazil, payment plans are accepted everywhere. You can literally buy gas , groceries, medicines or whatever on your credit card and they will split make those installments for you. Maybe this market exist outside of the US?
    • toomuchtodo 5y ago
      How do late fees work on this product in Brazil? Does this enable usury rates when late fees occur? https://www.profgalloway.com/red-friday/ https://www.profgalloway.com/red-friday/
      • rescbr 5y ago
        The whole purchase amount plus interest is taken from the credit card limit and every month you are charged for those installments. If you don't pay in full your statement, you pay regular Brazilian credit card interest rates (i.e. very high) on top of the BNPL interest rates. Some stores that have high cash flow may opt to not explicitly charge interest, opting to discount the price if you pay in full or charging the same price no matter whether paying in full or in 12 installments. It's important to note that the Brazilian BNPL scheme is enabled by the credit card acquirers, so there's a high degree of integration.
    • SilasX 5y ago
      Well, any time you buy with a credit card, you’re effectively doing the same thing. I remember when they were rolling out credit cards in the US as a common payment method (late 90s)[1], and so for the first time you could put your McDonald’s meal on a credit card, comedians were joking that it felt like you were saying you couldn’t afford it all at once. Which is not too far off from the reaction here. [1] and to clarify, yes credit cards were a thing long before that but they were mainly accepted at department stores and for big ticket purchases, not fast food.
• ocdtrekkie 5y ago
  I would applaud the convenience, but the terms are not nearly as useful as other services. If I can spread a purchase over four months, that's really useful. Affirm has been good to me this year. ...But what is even the point when you bill twice as often as most people get paychecks?
  • throwawayboise 5y ago
    > what is even the point when you bill twice as often as most people get paychecks? I'm seeing some employers here offering "next day pay" i.e. you get paid today for the hours you worked yesterday. IDK but could also imagine that many "gig" jobs work that way, i.e. do Uber drivers get their pay immediately with each ride provided, or two weeks later? Wonder if that model will soon be more common?
    • ocdtrekkie 5y ago
      So on further thought, four payments over six weeks, assuming an immediate initial payment, means it bills every two weeks, or every standard paycheck. So I guess it's mostly fine... But Affirm still defaults to spreading over four months, usually interest free for the retailers they partner with, and ends up a far superior deal.
    • wmf 5y ago
      Unfortunately some employers are charging 1% or more to get paid faster. It doesn't sound like much, but 1% to get money a week earlier is a very high APR.
• winternett 5y ago
  Now web browsers are gonna become credit cards attached to your browsing history... Great job guys! :| Ugh, who ever would have thought 2021 would have come to this.
  • ineedasername 5y ago
    Ugh, who ever would have thought 2021 would have come to this. 1980's cyberpunk writers
  • cutler 5y ago
    This is M$ we're talking about. Are you really surprised?
    • afavour 5y ago
      This is capitalism we’re talking about.
    • skinkestek 5y ago
      Haven't written MS that way for a while but it starts to feel like it is time for it again.
    • GekkePrutser 5y ago
      The overused acronym aside, MS does seem to seriously have issues building quality software because they lack focus. They always seem to get hijacked by forces in their own organisation dragging them off-track. Like totally screwing up Windows 8 because some part of the company wanted to sell more tablets. Ruining Teams by adding so much functionality to it without a clear vision that it's become a slow and confusing mess. Now this, undermining the push for a clean and fast browser with what is probably just one VP pushing this to make a quick monetary win for his team. This is one thing where Apple under Steve Jobs would shine. The company had one direction, one that was sometimes not what everyone wanted but once it was set it would not let itself be dragged off-track.
  • cyanydeez 5y ago
    anyone paying attention.?
• tzs 5y ago
  It is interesting to compare to using a credit card. The net tells me that the average credit card in the US has an APR of around 16%. Credit cards typically charge no interest for a month if you pay your balance in full that month. If you don't pay in full they charge interest based on your average daily balance during the month and the length of the month. If you were to pay with your credit card and then make 4 payments toward your credit card balance on the same schedule that you would have made Zip payments, I get that Zip beats the card if the purchase is over $487 and occurs at the start of your credit card billing cycle. It the purchase occurs in the middle of the cycle it needs to be over $811 for Zip to be cheaper. (This is assuming that in the month of the 4th payment you pay of the card balance completely).
  • hellbannedguy 5y ago
    In the US there usually is no interest if you pay on time. You can have perfect credit, but if your balance starts to get up there, credit cards can up their credit APR up to 29%. (Don't quote me on 29%, but it up there.) So credit cards are great if you pay in full each month. But when you actually need that cc money they tell you to spend, the consumer has very few rights. They can raise your rate of annual interest, and they do. I don't think there's a cc out there that doesn't have a mandatory mediation clause either. CC are bankrupt-able, even if you fib on your annual income. Don't fib. I believe the CC have more access these days to your finances. I once asked a Bankruptcy attorney about lying on the annual income. (People lie to get better rates.) He said, everyone lies on those forms. When a CC accepts you, they are basically accepting you on your Credit Rating. These is case law out there on this matter.
• TomGullen 5y ago
  What sort of person is buying something for $35 over 6 week instalments? What sort of stuff are they buying? It's a cash grab on the poor until they get regulated.