CommBank Neo: CBA’s answer to buy now, pay later

Taking its cues from NAB, which rolled out Australia’s first interest-free credit card yesterday with the StraightUp credit card, CBA has announced the upcoming launch of CommBank Neo.
The CommBank Neo card will give customers up to $3,000 of credit. There are also no interest payments, no late payments, and no foreign currency fees - only a fixed monthly fee depending on your credit limit will apply.
The three credit limits with corresponding monthly fees are detailed below. However, fees will be waived for the month if the card isn’t used and you have an outstanding balance of $0 during the statement period.
- $12 monthly fee for $1,000 credit limit
- $18 monthly fee for $2,000 credit limit
- $22 monthly fee for $3,000 credit limit
CBA’s retail banking executive, Angus Sullivan said the card will be a worthwhile addition in customers’ wallets, chiefly for its simplicity and the benefits available to shoppers.
“Using the full power of our innovation means CommBank Neo will also offer access to discounts and cash back offers with a range of retailers through CommBank Rewards,” he said.
As an example, CBA said a customer can receive a $15 cash back offer when shopping at one of the 80+ participating retailers. This means cardholders can potentially recoup the cost of their monthly fee.
The foray into interest-free lending comes as scores of young consumers turn their back on traditional credit products in favour of buy now, pay later services, which allow shoppers to spread out payments for purchases over several installments.
Players like Afterpay and Zip Pay have dominated this space by offering zero-interest payment plans with the flexibility to pay off balances over time. The CommBank Neo and NAB StraightUp card signal a willingness to embrace this shift.
According to CBA, CommBank Neo will be available in late 2020. A version for business customers is also currently in the works, and will be available in early 2021.
Credit card comparisons on Mozo - last updated 13 August 2022
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Apply By 31 Oct 2022
Westpac Low Rate - Cashback Offer
Enjoy a super low rate of 13.74% with 55 days interest free plus up to $200 cashback - $50 cashback for each month you spend $1,000 or more on eligible purchases in the first 4 months from card approval. New Cards only. T&C's and exclusions apply.
Purchase rate
13.74% p.a.Balance transfer rate
6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)Annual fee
$59Rewards program
-CompareCompareLow Rate - Cashback Offer
Enjoy a super low rate of 13.74% with 55 days interest free plus up to $200 cashback - $50 cashback for each month you spend $1,000 or more on eligible purchases in the first 4 months from card approval. New Cards only. T&C's and exclusions apply.
- Purchase rate
- 13.74% p.a.
- Balance transfer rate
- 6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)
- Annual fee
- $59
- Rewards program
- Purchase rate
- 13.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- Foreign exchange margin
- 3.00%
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- $59
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Low Rate - Cashback Offer
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Virgin Money No Annual Fee Card
Virgin Money No Annual Fee for the life of the card. 0% p.a. for 12 months on purchases (reverts to ongoing purchase rate) and balance transfers (reverts to cash advance rate).
Purchase rate
0% p.a. for 12 months then 18.99% p.a.Balance transfer rate
0% p.a. for 12 months and then 20.99% p.a.Annual fee
$0Rewards program
-CompareCompareNo Annual Fee Card
Virgin Money No Annual Fee for the life of the card. 0% p.a. for 12 months on purchases (reverts to ongoing purchase rate) and balance transfers (reverts to cash advance rate).
- Purchase rate
- 0% p.a. for 12 months then 18.99% p.a.
- Balance transfer rate
- 0% p.a. for 12 months and then 20.99% p.a.
- Annual fee
- $0
- Rewards program
- Purchase rate
- 0% p.a. for 12 months then 18.99% p.a.
- Intro purchase rate
- 0% p.a. for 12 months
- Balance transfer rate
- 0% p.a. for 12 months and then 20.99% p.a.
- Cash advance
- 20.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- Foreign exchange margin
- 3.30%
- Annual card fee
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- Late payment fee
- $30.00
- Cash advance fee
- 2.7%, Min $2.70
Read our Mozo Review to learn more about the No Annual Fee Card
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- Credit Card Provider of the Year - 2021
American Express Qantas Ultimate Card
Earn up to 100,000 bonus Qantas Points (75,000 bonus Qantas Points when you apply online by 23 August 2022, are approved, and spend $3,000 on your new Card within the first 3 months, plus an additional 25,000 Qantas Points in your second year upon fee renewal). T&Cs apply. New Card Members only.
Purchase rate
20.74% p.a.Balance transfer rate
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$450Rewards program
Qantas Frequent FlyerCompareCompareQantas Ultimate Card
Earn up to 100,000 bonus Qantas Points (75,000 bonus Qantas Points when you apply online by 23 August 2022, are approved, and spend $3,000 on your new Card within the first 3 months, plus an additional 25,000 Qantas Points in your second year upon fee renewal). T&Cs apply. New Card Members only.
- Purchase rate
- 20.74% p.a.
- Balance transfer rate
- No current offer
- Annual fee
- $450
- Rewards program
- Qantas Frequent Flyer
- Purchase rate
- 20.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
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- Cash advance
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- 44
- Intro fee
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- 3.00%
- Annual card fee
- $450
- Late payment fee
- $30.00
- Cash advance fee
Read our Mozo Review to learn more about the Qantas Ultimate Card
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Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
Purchase rate
20.74% p.a.Balance transfer rate
0% p.a. for 28 months and then 20.99% p.a.Annual fee
$129 $0 in the first yearRewards program
Velocity Frequent FlyerCompareCompareVirgin Australia Velocity Flyer Card - Balance Transfer Offer
Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.
- Purchase rate
- 20.74% p.a.
- Balance transfer rate
- 0% p.a. for 28 months and then 20.99% p.a.
- Annual fee
- $129 $0 in the first year
- Rewards program
- Velocity Frequent Flyer
- Purchase rate
- 20.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 20.99% p.a.
- Cash advance
- 20.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.30%
- Annual card fee
- $129 $0 in the first year
- Late payment fee
- $30.00
- Cash advance fee
- 2.7%, Min $2.70
Read our Mozo Review to learn more about the Virgin Australia Velocity Flyer Card - Balance Transfer Offer
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Apply By 31 Aug 2022
St.George Vertigo - Balance Transfer Offer
0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.
Purchase rate
13.99% p.a.Balance transfer rate
0% p.a. for 32 months and then 21.49% p.a.Annual fee
$55 $0 in the first yearRewards program
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0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.
- Purchase rate
- 13.99% p.a.
- Balance transfer rate
- 0% p.a. for 32 months and then 21.49% p.a.
- Annual fee
- $55 $0 in the first year
- Rewards program
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 32 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Vertigo - Balance Transfer Offer
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