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Does Walmart Have a Layaway Plan? Best Tips for Shoppers

Does Walmart Have a Layaway Plan

Walmart, the multinational retail corporation, has long been known for its strategic innovation and cost-effective strategies. Among the services that it once offered to customers was a layaway plan. 

Meant to provide a flexible payment option, this strategic approach allowed for deferred payments on goods according to the client’s convenience. 

But, does Walmart have a layaway plan now?

Well, as times and consumer behavior have changed, so has Walmart’s payment approach. Let’s break down the evolution to offer you a comprehensive understanding of Walmart’s new method.

Walmart’s Layaway Plan: A Retrospective

The layaway plan was once a popular feature at Walmart. Customers could choose a product, make a small down payment, and pay the rest in installments over time. 

The item remained in Walmart’s possession until the customer had paid the total price. The layaway plan catered to individuals who wanted to budget for larger purchases. 

It gave a sense of security, knowing that the product wouldn’t be sold out while they were still gathering the funds.

The concept was particularly popular during holiday seasons, where shoppers could secure gifts for their loved ones and leisurely pay off their debt. It was a win-win for both parties, creating reliable customer loyalty, and allowed stores to move products quickly.

laywaway plan

Does Walmart Have a Layaway Plan Now?

No, Walmart doesn’t have a layaway plan now, as they have shifted from Layaway to ‘Buy Now, Pay Later’ plan.

Despite the success of the layaway plan, change was inevitable. As digital transactions became more standard and convenient, customers sought immediate gratification from their purchases. 

They no longer wanted to wait weeks or even months to fully pay for and bring home their items.

Accordingly, around 2020, Walmart switched to a more modern approach, a ‘Buy Now, Pay Later’ system made possible through a partnership with the financial technology company Affirm. 

This change reflected Walmart’s attempts to keep pace with evolving shopping habits and shifts in consumer behavior brought about by the explosion of e-commerce.

How ‘Buy Now, Pay Later’ Works at Walmart

The ‘Buy Now, Pay Later’ system at Walmart operates in a significantly different way from the previous layaway plan. Shoppers can choose a product, take it home immediately, and pay for it over time. 

But instead of Walmart keeping the product until it’s fully paid for, Affirm lends the customer money to buy the product upfront from Walmart.

After checking out, customers can choose Affirm as a payment option. They then need to complete a quick application that won’t affect their credit score. 

The system instantly shows the loan amount, interest rate (if any), and each payment amount over the selected period. Affirm loans usually span three, six, or twelve months, although durations may vary depending on the purchase.

Pros and Cons of Walmart’s New Payment Method

The new model offers the obvious advantage of immediate gratification. Under ‘Buy Now, Pay Later,’ customers can take products home immediately after making the purchase, not needing to wait until full payment completion.

What’s more, depending on the customer’s creditworthiness and the size of the purchase, they can enjoy 0% APR on repayments. This potential absence of interest payments differentiates ‘Buy Now, Pay Later’ from credit cards giving customers a financial edge.

However, there are potential pitfalls to consider. If customers delay or fail to make payments, Affirm may charge late fees. 

Moreover, long-term loans for pricier items often come with an APR, adding cost to the product’s price. Despite presenting no-interest clauses, some customers may end up paying more due to this accrued interest.

Impact on Consumer Shopping Behavior

The new ‘Buy Now, Pay Later’ system has created significant ripples in Walmart’s customer base, affecting shopping behavior substantially. 

With the rise of online shopping and e-commerce, consumers have been primed to expect instant gratification when they make purchases. The ‘Buy Now, Pay Later’ system fulfills this expectation simultaneously with the opportunity to manage their budget.

Interestingly, the transformation enforced by Walmart seems to have spurred a surge in big-ticket purchases, such as electronics, furniture, and appliances. With the affordability factor of splitting the cost into smaller, manageable amounts, consumers now have the ability to purchase pricier items without the weight of the full payment. This psychological boost has led to an increase in spending, which, in turn, influences economic growth.

A Glimpse into the Future of Retail Financing

Walmart’s shift is a reflection of changing retail financing. As services are increasingly digitized and revolutionized, traditional models, such as layaway plans, become less attractive to consumers, who lean towards convenience, flexibility, and immediacy.

This change could potentially spark a trend among other retailers, causing a widespread shift towards similar ‘Buy Now, Pay Later’ services. 

If customers respond positively, it could lead to a new standard for retail finance, pushing us further into a world driven by instant gratification and customized convenience.

buy now pay later

Tips for Navigating the ‘Buy Now, Pay Later’ System

Though the ‘Buy Now, Pay Later’ system is relatively intuitive, there are a few tips that shoppers can employ to navigate it effectively.

  1. Know Your Budget: It’s crucial to be aware of your financial limitations before choosing to opt for a ‘Buy Now, Pay Later’ plan. The convenience it offers should not be an open invitation to overspend.
  2. Understand the Rates: Ensure that you understand the interest rates, if any, associated with your purchase. Some transactions may appear interest-free, but late payments could incur costs.
  3. Be Timely With Payments: Make sure to pay back the loan within the stipulated time to avoid any late penalty fees. Having a proper payment plan can help manage your loan efficiently.

FAQs: Key Questions Answered

Can all items be purchased using the new payment option?

Practically yes, although there may be some restrictions based on the value of the product. Typically, Affirm lends for purchases ranging from $50 to $2,000.

Are there any fees or interest associated with the new payment option?

While Affirm emphasizes transparency about their fees upfront, some purchases may incur interest costs. Usually, these are for larger purchases spread out over longer periods of time.


Walmart’s shift from a layaway plan to the Affirm-backed ‘Buy Now, Pay Later’ system marked a significant step in the evolution of retail financing. It responded to changing consumer desires and reflected global digital trends. 

With its benefits and possible drawbacks, it underscores the power of knowledge and the need for informed decision-making in personal finance. 

As we move forward in our increasingly digitized world, such changes provide a glimpse into the future of retail.

Knowing these facts and understanding the mechanism will help customers make the most out of their shopping experience at Walmart. As always, the key to smart shopping lies in being informed. We hope this article has served to do just that.