CommBank launches Buy Now Pay Later product: how it stacks up
CommBank has just become the latest company and the first major bank to enter the Buy Now Pay Later (BNPL) market.
Similar to other BNPL products, customers can split up their purchases into four equal fortnightly instalments for transactions above $100. In order to access the service, customers will need to link it through their CommBank bank account.
Other notable features of the CommBank BNPL product include:
- No ongoing fees
- Available to use wherever credit and debit cards are accepted
- No foreign exchange fees
- An account limit of $1,000
- A $10 late payment fee for every missed instalment (caps in place to minimise the number of additional fees).
The decision to launch the product came in response to the growing popularity of BNPL amongst Aussie shoppers, says CommBank group executive, retail banking services, Angus Sullivan.
“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”, he said.
Although this a new venture for CommBank, they are no stranger to the BNPL world, as the bank assisted fellow BNPL company, Klarna with its launch in Australia back in January 2020.
“Our new BNPL service complements and underscores our investment in Klarna and our joint venture business here in Australia which offers both CBA and non-CBA customers huge opportunities to connect with domestic and international retailers,” said Sullivan.
If you are a CommBank customer and interested in trying out the new BNPL service, it will be rolled out to eligible customers from mid-2021.
CommBank reaches out to millennials with innovative products
Between digital wallets and new payment platforms, personal finance has definitely received an upgrade over the last few years.
And if recent news is anything to go by, it looks like major banks are trying to keep up with the latest movements. Aside from the new BNPL offering, CommBank also launched its interest-free credit card, Neo in December 2020.
As a result, the credit card accounted for one-third of all credit card approvals in December, with more than half the uptake coming from millennials.
If you’d like to find out how the new CommBank BNPL service stacks up to other offers, be sure to check out our comprehensive Buy Now Pay Later guide.