The world’s biggest online retailer is offering a new pay monthly option on orders of more than £400, which can include multiple items.

Amazon Pay Monthly poses a new threat to established high street retailers such as John Lewis and could attract a wave of new customers to the website.

The loan can be spread over two, three or four years depending on the size of the purchase, with Amazon charging interest at an advertised rate of 16.9%. Customers do not have to pay a deposit, meaning the first payment is their opening monthly instalment.