Westpac has developed a novel twist on the buy now, pay later concept, giving credit card customers the opportunity to pay off their bills in four instalments
In the coming months, Westpac credit card customers will be able to link their existing credit card to a new PartPay digital card, enabling them to split their purchases into an initial instalment, with a further three fortnightly instalments to follow.
Westpac consumer and business banking chief executive, Chris de Bruin, says the new feature is about giving customers more control.
“The payment landscape has changed and customers have told us they like the option of making payments in instalments," he says. "This new feature provides that flexibility in a fast and convenient way, via a digital card that can be downloaded in the Westpac app."
Purchases on the PartPay digital card must be $100 or more and within the customer's approved card limit. No late payment fees will be charged for missing an instalment. Instead, the outstanding credit will be transferred to the consumer's card purchase balance where standard interest rates will apply.
While NAB and CBA operate their own pure-play BNPL products, Westpac has been demanding tougher action from the Government to regulate the sector, backing a proposition to bring BNPL in line with other credit products and requiring full assessments for each purchase.
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