BENTONVILLE — A long-standing holiday tradition has gone by the wayside as Walmart announced last month they no longer will offer layaway plans for Christmas gifts.
Layaway allowed buyers to select items and pay for them over time — often at no extra charge — before picking them up just before the holidays.
Walmart recently announced that the company is switching to a “buy now, pay later” program in partnership with lending company Affirm.
The company, which recorded a total revenue of $559 billion in 2020, says this alternative to layaway allows customers to purchase products immediately and pay over time.
The downside however is the financing costs, that can run from 10 percent to 30 percent APR depending on the buyers’ credit.
“We’ve learned a lot in the past year as our customers’ needs and shopping habits have changed,” a representative for Walmart said in a statement. “Last holiday season, we removed seasonal layaway from most of our stores with the exception of select jewelry items at select stores, and based on what we learned, we are confident that our payment options provide the right solutions for our customers.”
