Suncorp, the Australian insurance, banking, and finance firm has announced that it will launch its own buy-now-pay-later service PayLater. With this, Suncorp aims to add more payment options for its customers.
The bank has announced that the product will be officially launched in November this year through the Suncorp mobile banking application. Over the past few months, multiple financial institutions such as PayPal, Citi, and Commonwealth Bank have entered the BNPL market following the trails of Afterpay.
Thriving BNPL Sector
There seems to be a stampede of some sorts in the current BNPL market particularly in Australia. As mentioned above, multiple financial companies are venturing into the BNPL space and the trend is picking up pace. Besides, even the smaller firms such as Zip Co, Sezzle, and Afterpay are adding to the competition within the booming sector.
The BNPL sector’s growth is on the rise due to a myriad of reasons. The main driving factor is the increasing interest from young customers who are moving to BNPL instead of credit cards.
More about the Suncorp’s BNPL Service
The bank is set to roll out its BNPL service in November 2021. PayLater customers will be able to repay their bills in four installments. The service will be available at retailers that accept Visa, with a purchase limit of $1000.
Suncorp said that customers will be able to use the BNPL offer in all parts of the world where Visa is accepted. Suncorp Bank, Chief Executive, Clive van Horen said that the BNPL service will be available on Suncorp’s application and customers will also get a physical card.
Similar to the products announced by Citi and CBA, Suncorp’s BNPL service will not ask the customers to pay additional bank fees beyond what they pay for accepting credit cards.
He said that Suncorp’s service will get rid of added costs to businesses that are paying thousands of dollars in conventional BNPL fees. He said that the late fees will be capped at $10 per purchase and customers will get a two-day grace period for missed repayments.
In contrast to credit cards, there is no mandate that BNPL operators and banks have to follow to undertake a full credit check on customers while offering their BNPL service.
Suncorp’s entry into the BNPL market is a clear indication that the service is gaining mainstream popularity. Some analysts also predict that this move could cut down Zip and Afterpay’s market share.
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