The retailer is now using the company Affirm, which partnered with Walmart in 2019, to replace layaway. Instead of having stores hold items from late August through mid-December while customers make payments until paid in full, shoppers can now take the item home immediately and pay it off with Affirm.
Unlike layaway, purchases made with Affirm may charge customers interest. Although Affirm does not charge any hidden or late fees for using its services, customers can have an APR rate on purchases of 10-30% depending on their credit and 0% for select promotional items on Walmart.com.
Not all Walmart customers may be eligible to use Affirm depending on their prequalification status. The service can be used on purchases ranging from $144 to $2,000 and excludes items like alcohol, groceries and food, personal care products, and pet supplies.
Per Business Insider.
Walmart has been phasing out layaway but this sucks for low income people who may not qualify for Affirm, and then even if they do, they may have to pay interest now.
Now if they could only ditch Capital One for a better issuer of their cards.
Makes sense especially for holiday season!
I can totally understand this move for any retailer, it's a costly service to have on property as it requires a hunk of dedicated space someone to oversee it and at a very low fee if one at all. So it's much easier for them to make it a 3rd party problem so that all they have to do is sell merchandise. As much as it sucks for those without credit I guess it will teach the concept of spending only what you have and to save in advance for those things. However, one aspect is the high APR that people are going to get stuck with and can severely add up on large purchases versus a $5 down layaway fee.