If you’re an American Express customer, have we got good news for you! Today, the credit card provider has launched a brand new feature, called ‘Plan It’, an alternative to traditional 'Buy Now, Pay Later' (BNPL) platforms.
Amex credit card customers can now make purchases ($150 minimum spend) using their card at any American Express-accepting merchant and pay them off in interest-free instalments of either three, six, nine or twelve months.
The decision to launch Plan It has come in response to the increasing number of Australians shifting toward BNPL services as a way to spend.
Unlike other BNPL services, such as Afterpay or Zip, the added flexibility of longer installment plans means that card holders are able to make larger purchases, such as renovations within the home, future travel plans or a much longed-for family pet.
The amount you can spend will depend on your card’s credit limit or remaining balance. And if you decide to spend regularly without Plan It, customers can still keep their interest-free days so long as they pay off the closing balance, plus any ongoing monthly installments by the due date.
Customers looking to set up a Plan It plan can do so either online or within the American Express app. There are a few things customers will need to keep in mind. Once you set up a plan, American Express charge a fixed monthly fee that is added to your minimum monthly payment on your credit card statement.
The fee charged depends on the type of card you own and can range anywhere between 0.42% and 1.04%. If you miss a payment, this will incur a late payment fee. However, as an addition for plans created from now till 30 September 2020, fees will be 0.73% of the plan amount for all products except the Low Rate and Essential credit card (0.42%).
Thinking about picking up an American Express credit card? Here’s a closer look at some of the available offers below!