The Commonwealth Bank has launched a new buy-now-pay-later service, in a bid to compete with the popular Afterpay.
The Commonwealth Bank has launched a new buy-now-pay-later service, in a bid to compete with the popular Afterpay.

Bank launches buy-now-pay-later service

Commonwealth Bank has launched its own buy-now-pay-later service, which will available to all of the bank's credit and debit card holders by the middle of this year.

The nation's major bank will implement its own BNPL service in response to the growing popularity of zero-interest instalment payments, particularly among younger consumers.

CBA's digital service will available for payments between $100 and $1000, with the transactions broken into four instalments.

The service will be available anywhere the bank's cards are accepted.

Businesses will also be charged no additional fees when using the CommBank service.

The average cost in merchant fees when offering a BNPL such as Afterpay or Zip, is 4 per cent.

CBA retail banking executive Angus Sullivan said customers wanted more flexibility.

"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," Mr Sullivan said.

"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."

The latest product is separate from CBA's investment in Klarna.

Originally published as Bank launches buy-now-pay-later service


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