Wal-Mart. Photo file.
BENTONVILLE – A long-standing holiday tradition has been scrapped as Walmart announced last month that it would no longer offer layaway plans for Christmas gifts.
Layaway allowed shoppers to select items and pay for them over time – often at no additional cost – before picking them up right before the holidays.
Walmart recently announced that the company is moving to a “buy now, pay later” program in partnership with loan company Affirm.
The company, which posted total revenue of $ 559 billion in 2020, says this alternative to layaway allows customers to buy products immediately and pay over time.
The downside though is the financing costs, which can range from 10 percent to 30 percent APR depending on buyers’ credit.
“We have learned a lot over the past year as the needs and buying habits of our customers have changed,” a Walmart representative said in a statement. “This past holiday season, we removed seasonal layaways from most of our stores with the exception of certain jewelry items in certain stores, and based on what we have learned, we are confident that our payment options offer the right solutions for our customers. “