Borrow
Suncorp team-up with Visa to put their spin on buy now, pay later
Suncorp’s PayLater will be available to customers from November.
Suncorp team-up with Visa to put their spin on buy now, pay later
Suncorp is the latest traditional bank to enter the burgeoning buy now, pay later (BNPL) niche.
As with similar and popular BNPL apps like Afterpay, Zip and Klarna, PayLater promises to allow customers additional freedom and flexibility when it comes to when and how they borrow and spend money.
“Some customers prefer to use credit cards, while others want simple, short-term payment options from a trusted and secure bank,” Suncorp Bank CEO Clive van Horen said.
Launched in partnership with Visa, Suncorp’s PayLater card will be accepted anywhere that VISA is already. In that sense, it’s something of a counterpart to the Commonwealth Bank of Australia’s StepPay, which does much the same thing with the Mastercard network.
“The buy now, pay later sector is rapidly evolving as consumers increasingly look for flexibility and choice in the way they pay, both in-store and when shopping online,” said Visa Group country manager for Australia, New Zealand and South Pacific Julian Potter.
In addition to removing the hurdle of asking merchants to do the work of supporting yet another BNPL app, this emphasis on infrastructure also means that merchants themselves benefit through reduced fees.
Mr van Horen framed PayLater as a win for businesses struggling under the market conditions of the COVID-19 pandemic.
“Our PayLater offering eliminates additional costs to those businesses who are currently paying millions of dollars in traditional BNPL fees,” he claimed.
Rather than rely on its own app, PayLater is integrated into Suncorp’s existing mobile banking app.
Like Afterpay, purchases made using StepPay are interest-free. Instead of paying up front, customers are able to break purchases of over $50 but under $1,000 into four monthly instalments.
Late fees are capped at $10 per purchase, with a two-day grace period.
Where PayLater deviates from the template set out by other BNPL operators is that it does conduct credit checks beforehand and that Suncorp will issue eligible customers with a physical card, allowing them to make BNPL purchases without their phone.
Suncorp is looking to launch PayLater in November, but it is asking customers to register their interest from today.
About the author
About the author
Credit card
Top strategies for improving your credit score in 6 months
Maintaining a healthy credit score is essential for financial wellbeing, especially in Australia where credit scores significantly influence loan and credit card approvals. Read more
Credit card
Block announces first integration with Afterpay
Block’s acquisition of Australia’s buy now, pay later platform has been completed. Read more
Credit card
Afterpay v Zip: Which is better value?
The two biggest brands in BNPL may have more in common than you think. Read more
Credit card
BNPL to boom amid seasonal spending
There’s never been a better time to buy now, pay later than the holiday season. Read more
Credit card
Experts say BNPL data underutilised by credit sector
BNPL took off among Australian consumers so fast that credit bureaus are still trying to catch up. Read more
Credit card
Calls for online gambling ban intensify
A parliamentary committee has backed calls for a new ban on credit card gambling. Read more
Credit card
Afterpay looks to find foothold in subscriptions
Afterpay will let customers break their monthly bills into instalments from early next year. Read more
Credit card
Credit cards slip 4%, but BNPL isn’t the culprit
Traditional credit cards have continued to decline in popularity over the course of the pandemic. Read more
Credit card
Top strategies for improving your credit score in 6 months
Maintaining a healthy credit score is essential for financial wellbeing, especially in Australia where credit scores significantly influence loan and credit card approvals. Read more
Credit card
Block announces first integration with Afterpay
Block’s acquisition of Australia’s buy now, pay later platform has been completed. Read more
Credit card
Afterpay v Zip: Which is better value?
The two biggest brands in BNPL may have more in common than you think. Read more
Credit card
BNPL to boom amid seasonal spending
There’s never been a better time to buy now, pay later than the holiday season. Read more
Credit card
Experts say BNPL data underutilised by credit sector
BNPL took off among Australian consumers so fast that credit bureaus are still trying to catch up. Read more
Credit card
Calls for online gambling ban intensify
A parliamentary committee has backed calls for a new ban on credit card gambling. Read more
Credit card
Afterpay looks to find foothold in subscriptions
Afterpay will let customers break their monthly bills into instalments from early next year. Read more
Credit card
Credit cards slip 4%, but BNPL isn’t the culprit
Traditional credit cards have continued to decline in popularity over the course of the pandemic. Read more