Suncorp announces PayLater, a Buy Now Pay Later debit card

Today, Suncorp Bank has announced that it is broadening its services with a new Buy Now Pay Later (BNPL) offering, PayLater.

PayLater will be available to Suncorp customers from November 2021 - however, those who are keen can pre-register to join.

How will Suncorp’s PayLater work?

PayLater is all about flexibility. Suncorp is offering its customers the option of a digital or physical PayLater Visa Debit card to shop online and in-store at more than 70 million merchant locations worldwide - wherever Visa is accepted.

When shopping, Suncorp customers will be able to pay for their purchase from their bank account with their green Visa debit or buy now, pay later with their yellow PayLater Visa Debit card.

Purchases made with the PayLater card will be split into four equal payments. The first payment of 25% of the purchase price will be immediately charged to your account, with three more equal automatic fortnightly payments to follow

As an added green bonus, Suncorp Bank also announced that all new debit cards, including PayLater cards, will be made from 87% recycled material.

Are there payment limits with PayLater?

As with most BNPL services, PayLater does have a spending limit. Once approved, cardholders will be able to make purchases of $50-$1000.

Does PayLater charge fees?

Suncorp says PayLater will not charge interest or monthly or annual fees, nor are there any foreign currency conversion fees on PayLater Visa Debit cards, overseas or online. That said, PayLater isn’t completely fee-free.

There are late fees if automatic payments don’t go through. Suncorp will provide you with a two-day extension to manually make the instalment payment before they charge a $10 late fee.

Terms and conditions are subject to change, so be sure to do your own research.

Who is eligible for Suncorp’s PayLater?

PayLater will be available to eligible Suncorp customers with an Everyday Options Account. So, if you’re not with the bank already, you will have to sign up to gain access.

Suncorp will perform a credit check upon application, so eligibility may also depend on your credit history.

What other BNPL options like PayLater are there?

Unlike some of the most well-known BNPL services, such as Afterpay and Zip, some of the newer breeds of BNPL have adopted a digital card tactic, an alternative to Suncorp’s PayLater physical Visa Debit card.

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 customers with digital one-time-use cards for greater flexibility when shopping. Purchases made using these cards are split up into four equal repayments, paid fortnightly.

• 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 two weeks.

Although you might be familiar with the big-name BNPL services, many big banks - as well as digital payment giant PayPal - have also launched BNPL offerings.

Check out some examples:

• StepPay: Last month, CommBank launched StepPay, a digital-only Mastercard card (to be used on your smartphone) that allows customers to make purchases and pay them off in four equal fortnightly instalments.

• Spot. Buy Now Pay Later: Citi Australia announced its BNPL offering, Spot. Buy Now Pay Later, to be released in October 2021. Spot allows customers to purchase with a digital Spot Diners card and then pay it off in four interest-free instalments. For purchases over $200, customers can pay a flat fee of $10 to break down the payments into eight fortnightly instalments.

• Pay in 4: PayPal has entered the BNPL market with Pay in 4, a service that allows you to purchase an item online via PayPal, priced between $30 - $1500, in four equal instalments. Pay in 4 boasts no interest and no late fees for its customers.

Not sure if this is the right service for you? Head to Mozo’s buy now pay later hub to learn more about how it all works and what other providers are out there.

Or check out the Buy Now Pay Later statistics report, covering everything you ever wanted to know about BNPL.