CommBank launches StepPay, the latest big-bank Buy Now Pay Later venture
Today, CommBank has officially launched StepPay - it’s brand new Buy Now Pay Later (BNPL) service.
CommBank introduced StepPay to customers last month and were taking pre-registrations, however it’s only as of right now that the platform is live for them to use.
“We’re excited to create the first BNPL from a major bank which can be used anywhere our cards are accepted,” CBA’s executive general manager, Marcos Meneguzzi said.
“We know BNPL is a popular choice among customers, but is hampered by its limited use and availability in only selected retailers and businesses. With StepPay, customers have freedom around where they’d like to shop, offering the same accessibility as our other CBA cards. "
A quick rundown of how StepPay works
StepPay is a digital-only card (to be used on your smartphone) that allows customers to make purchases and pay them off in four equal fortnightly instalments. The cards have a limit of $1,000 and a minimum spend amount of $100 per transaction.
However, it’s important to note that not all customers may be approved for the full $1,000 limit as limits are assessed based on a customer’s credit score.
The benefit of StepPay, in comparison to other BNPL platforms, is that it is accepted at any retailers that accept Mastercard as a form of payment.
What other BNPL options like this are there?
While companies like Afterpay and Zip often spring to mind when thinking of BNPL, over the past few years there have been many players crack onto the scene.
This includes companies like Klarna, humm and BrightePay, our 2021 Mozo Experts Choice Award for Buy Now Pay Later winners, and other big payment giants like Paypal launching their own BNPL services.
Unlike Afterpay and Zip, some of these newer breeds of BNPL have adopted the same digital card tactic as CommBank’s StepPay, meaning they are more widely accepted amongst retailers.
Here are some examples:
- Klarna: Winner of the 2021 Mozo Experts Choice Award for Best Buy Now Pay Later Service for Small Purchases, Klarna provides ‘ghost cards’ with a maximum limit of $1,000 to customers. Purchases made using these cards are split up into four equal repayments, paid fortnightly.
- Citi’s Spot. Buy Now Pay Later: Earlier in the month, Citi announced it will be launching its own BNPL service, Spot. With a limit of $1,000, a Spot. Buy Now Pay Later card can be added to a customer’s digital wallet and allows purchases to be paid back over four equal fortnightly installments.
- Bundll: Designed for smaller everyday spends, Bundll allows customers to make multiple purchases using a digital card at any retailer that accepts Mastercard. Card limits go up to $1,000 and purchases can be paid back over a two week period.
It’s important to note, that each BNPL platform has its own set of fees and conditions attached to it - so it’s worth doing your research before you sign up.
For the full rundown of what’s available right now, check out our Buy Now Pay Later hub or more information on Buy Now Pay Later statistics.