Commonwealth Bank Launches BNPL Service
Commonwealth Bank has introduced its own Buy Now, Pay Later (BNPL) service, which will be available to all of its credit and debit card holders in 2021.
Australia’s largest bank is launching the service in an already-thriving BNPL market, where platforms such as Zip and Afterpay have enjoyed astronomic growth over the past several years.
Commbank’s BNPL service can be used for transactions between $100 and $1000, with the payments broken up into four instalments.
The bank will charge a late fee of $10, capped at $120, and the scheme will not be available for cash advances or spending on gambling.
The BNPL product will be available through the Commbank app and does not require a physical card.
Eligible customers will need to show evidence of a regular salary paid into a Commbank account and CBA says it will perform credit checks on all potential customers before allowing them to use the product.
It will be made available at any retailer or merchant where CBA bank cards are accepted.
Businesses offering the CBA BNPL scheme will not be charged any additional fees. The average merchant fee for other services such as Afterpay or Zip are 4 per cent.
“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,” CBA retail banking executive Angus Sullivan told News Corp.
“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.”