Suncorp Group (ASX: SUN) is the latest financial services giant to tap into the buy-now pay-later (BNPL) craze made popular by the likes of Afterpay (ASX: APT) and Zip Co (ASX: Z1P), after announcing its entrance into the market today in partnership with Visa.
Called PayLater, Suncorp Bank’s BNPL offering can be used to make payments wherever Visa is accepted and will be available to all existing customers of the bank from November via its app.
Eligible customers will receive quick approval when they apply for a PayLater account, with the bank’s assessment to include a credit check.
The BNPL product will be interest-free, will not charge merchants additional fees, and gives users a limit of $1,000 once eligibility is determined by Suncorp.
“Some customers prefer to use credit cards, while others want simple, short-term payment options from a trusted and secure bank,” Suncorp Bank CEO Clive van Horen said.
“This solution is also a win for Australian businesses, many of whom are doing it tough right now as we learn to live with COVID-19.
“Our PayLater offering eliminates additional costs to those businesses who are currently paying millions of dollars in traditional BNPL fees.”
PayLater will also offer customers the option of a digital or physical PayLater Visa Debit card that can be used both in-store and online.
Visa group country manager for Australia, New Zealand and South Pacific Julian Potter said the payments provider was excited to partner with Suncorp.
“The Buy Now Pay Later sector is rapidly evolving as consumers increasingly look for flexibility and choice in the way they pay, both in-store and when shopping online,” Potter said.
“We’re excited to partner with Suncorp to deliver a seamless and secure digital payment experience that offers customers the convenience of paying in instalments anywhere Visa is accepted and enables more businesses across Australia to grow.”
Shares in SUN are down 0.63 per cent to $12.59 at 10.27am AEST.
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