Westpac's PartPay lets credit card users pay in instalments

As buy now pay later continues to be reviewed by Australian regulators, Westpac has launched a new credit card feature that similarly allows its customers to make credit card purchases in instalments. 

In the coming months customers will be able to link their existing Westpac credit card to what the bank is calling PartPay, a service that splits purchases into an initial instalment, with a further three fortnightly instalments to follow.

PartPay will be offered to customers with Westpac’s Low Rate, Lite, Low fee, Altitude Rewards Platinum and Altitude Rewards Black credit cards as an opt-in with a digital card that uses the customer's existing credit card limit.

In this current high cost environment, similar buy now pay later services continue to be popular and Westpac says its focus with this launch is to give its card customers greater control and flexibility with their finances.

However, it's worth noting that Westpac has also been one of the main supporters of tighter regulation around buy now pay later, seeking rules that treat it the same as other credit products.

“The payment landscape has changed and customers have told us they like the option of making payments in instalments," said Westpac's consumer and business banking chief executive, Chris de Bruin. "This new feature provides that flexibility in a fast and convenient way, via a digital card that can be downloaded in the Westpac app."

Quick facts about Westpac's PartPay:

• Purchases on the PartPay digital card must be $100 or more.

• PartPay is linked to an Australian bank account of the customer’s choosing, where fortnightly payments will be automatically deducted. Customers will receive a reminder three days before the auto payment due date.

• No late payment fees will be charged for missing an instalment.

• No interest or fees are charged to use PartPay, except for Foreign Transaction Fees. However, if a customer misses a PartPay payment, the instalment is transferred to their Westpac credit card purchase balance and standard interest rates will then apply.

• Customers will enjoy the same features where available on their existing credit card when using PartPay, including rewards, Westpac Extras and Westpac Credit Card Complimentary Insurances.In addition to PartPay, to help customers manage their repayments, SmartPlan is also available on eligible Westpac personal credit cards where customers can split credit card repayments on prior transactions into instalments over up to 12 months.

If you're keen to check out some of the latest credit card deals, be sure to visit our best credit cards hub page. If you'd like more info about buy now pay later, we've got you covered too!