Commonwealth Bank of Australia unveils new Buy Now, Pay Later offering
By Leandra Monteiro
Commonwealth Bank of Australia recently unveiled its new Buy Now, Pay Later (BNPL) offering which can be used anywhere. As well as debit and credit card payments are accepted. It will begin rolling out to eligible CBA customers from mid-2021. Accessible to eligible CBA customers, the new BNPL is linked to a CBA bank account, with no ongoing fees and at no additional cost to businesses.
“Customer needs are evolving and this new BNPL offering is about giving customers more choice around how they choose to pay and when, depending on the option which suits them best,” said CBA’s Group Executive, Retail Banking Services, Angus Sullivan.
“When making a payment, customers will have additional flexibility to use it for their everyday spending for smaller purchases as well as split over four instalments to help smooth payments for bigger purchases. Additionally, we know transaction costs are important considerations for businesses. Unlike some other BNPL providers which may charge a high fee, there are no additional fees to businesses when customers choose to pay with CommBank’s BNPL,” Mr Sullivan said.
BNPL fees are costing Australian businesses hundreds of millions of dollars a year, with industry average BNPL costs to businesses at around 4% per transaction. However, Commonwealth Bank of Australia claims that when customers shop with its BNPL, businesses will pay no additional fee above standard merchant service fees.
In order to approve customers eligibility CommBank’s BNPL will apply a strong criterion based on specific eligibility and credit assessments. Eligible customers will be allowed to apply for the product after they submit proof of a regular salary deposited into a CBA transaction account which can cover repayment instalments. Commonwealth Bank of Australia’s BNPL will only be available to customers following internal and external credit assessments.
Recent research also shows that 76% of Australians who currently use Buy Now Pay Later services are more interested in using a BNPL service offered by their main bank.
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