Product design question

How would you design a "Pay Later" feature for Amazon app?

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Product design for a BNPL feature within a large existing marketplace, balancing user value with credit risk.

Segment users: budget-conscious shoppers wanting to split larger purchases, and impulse buyers who might overextend without payment friction.
Identify the pain point: large one-time purchases create checkout hesitation without a financing option, especially without a store credit card.
Prioritize the budget-conscious segment for purchases above a threshold, say 100 dollars, where the risk and reward for BNPL is clearest.
Design the solution: an installment option at checkout with a soft credit check and a clear total-cost display to avoid a debt trap.
Add a guardrail: cap the number of concurrent Pay Later plans per user to limit overextension risk.
Define success: incremental order value from Pay Later-eligible purchases and repayment default rate as a risk guardrail.

Balances conversion upside with real credit risk, showing awareness this is a lending product, not just a checkout feature.
Proposes a concrete purchase threshold rather than applying BNPL universally.
Adds a specific guardrail, capping concurrent plans, addressing a known BNPL industry risk of debt stacking.
Uses both a growth metric and a risk metric as success measures.

How would you determine eligibility and credit limits for each user?
How would you handle a user who misses a payment?
How would this affect the platform's relationship with existing card and financing partners?