3 Benefits of Using Layaway Payment Plans for Purchases.

Layaway is an alternative method for buying items. If you do not have a credit card, no credit score, or a low credit rating, layaway allows you to pay for an item over time, thereby increasing your power to buy more items.

The PayFlexi Blog
Thursday 23rd, September 2021

While shopping online, have you looked at a price of an item and you realized that you cannot afford it? You know you deserve to spoil yourself a bit, but your credit card will max out?

We get this feeling, but we will share tips on how to buy some deserving luxuries and increase your purchasing power.

Buy now, pay later (also known as Pay in Instalment) services might be sound strange to some people, but buy now, pay later services have existed for a long time starting with what they call Layaway.

With layaway, you don’t have to worry about the “exorbitant” cost of an item. The retail store will save the item until you have completed payments.

Layaway payment plans is a financing method that allows customers to pay a deposit for an item and create a deferred payment plan, which allows them to pay up the balance over a period of time. The business keeps the item for the customer and releases it after they have completed payments.

In the 1980s or 1990s, layaway programs granted shoppers to reserve an item they wanted, pay a deposit, then pay the remaining balance over time. Once the item was paid in full, the customer could pick it up.

How It Works:

These are the basic process of any layaway payment plans.

  • You select an item for layaway payment. Most stores focus on high-ticket items like electronics, phones, etc.
  • You pay an upfront amount for the item. The store determines the deposit plan. Some stores allow you to select a deposit plan, while others may charge an amount.
  • You pay back little by little. It could be weekly, bi-weekly or monthly payments.
  • Once you've paid the total price and service charge, you can pick up your items or get it delivered to you.

Benefits of layaway payment plans

1. No additional cost

When items are purchased using layaway payment plans, the merchant usually will not charge the customer any interest on the price of the item. This is an interest free service. The customer will not pay any interest fee for having his items kept for future pick up.

This is a better and inexpensive option as compared to credit card purchases that charge customers exorbitant service charges.

2. Increase in Purchasing Power

Layaway is an alternative method for buying items. If you do not have a credit card, no credit score, or a low credit rating, layaway allows you to pay for an item over time, thereby increasing your power to buy more items.

3. Accessibility to High-Value Items

Layaway allows you to be able to "afford" high-end items. Items such as electronics, smartphones, jewelries, designer dresses or footwears. Quite often, it’s just too much for customers to place a huge order. Even if they are comfortable and have the money, letting go of $500 – $1000 on the beat really holds the strings on their wallet.


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PayFlexi provides the tools and infrastructure for businesses and individuals to be paid and pay in flexible and convenient ways at the point of checkout.

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