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CBA takes on BNPL sector
The big four bank has launched a new buy-now-pay-later service in a bid to take on established players in the lucrative industry.
CBA takes on BNPL sector
The big four bank has launched a new buy-now-pay-later service in a bid to take on established players in the lucrative industry.
With changing consumer demands seeing customers prefer to split payments, Commonwealth Bank said it will launch its own buy-now-pay-later (BNPL) service through its debit or credit card from mid 2021.
Commbank said the industry standard for BNPL services is 4 per cent merchant fees to sales, with the major bank saying it will not charge an additional fee for businesses who accept the payment.
The nation’s largest bank said it will be available for payments between $100 and $1000, with transactions broken into four payments.
“Customer needs are evolving and this new BNPL offering is about giving customers more choice around how they choose to pay and when, depending on the option which suits them best,” said CBA’s Group Executive, Retail Banking Services, Angus Sullivan.
“When making a payment, customers will have additional flexibility to use it for their everyday spending for smaller purchases as well as split over four instalments to help smooth payments for bigger purchases.
The major bank said the BNPL offering is in line with shifting customer preferences and expectations around how they like to access short term credit in ways that are simple, low cost and have no surprises.
“We are excited to announce the first BNPL offered by a major bank which will give customers access to cash flow in a way that meets their changing preferences and expectations,” Mr Sullivan said.
Eligible customers will be able to apply for the product where they show evidence of a regular salary deposited into a CBA transaction account which can cover repayment instalments. CommBank’s BNPL will only be available to customers following internal and external credit assessments.
“As the leading digital bank in Australia, we believe we are best placed to offer our customers a prudent and responsible BNPL option based on the trends and insights sourced from real time transaction data over many years,” Mr Sullivan added.
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