Westpac is giving credit card owners the opportunity to pay off their bills in four monthly BNPL instalments
Australian multinational banking and financial services company Westpac has expanded its credit card functionality, adding a flexible payment option PartPay, which enables customers to make purchases in instalments.
The purchase sum will be divided into four monthly payments. The first partial payment is made immediately, while the rest is paid over three fortnightly instalments. The minimal threshold for Westpac’s BNPL purchases is $100. Besides, the purchase amount should be within the customer’s approved card limit.
No late payment fees will incur for missing an instalment. Instead, the outstanding credit will be transferred to the consumer’s card purchase balance where standard interest rates apply.
Within the next few months, Westpac credit card customers will be able to link their existing credit card to a new PartPay digital card if they wish to unlock the new payment option. The service will be available on Westpac’s Low Rate, Lite, Low fee, Altitude Rewards Platinum and Altitude Rewards Black credit cards.
Furthermore, to be eligible for a new function, you must be up to date with your credit card payments, with no transaction blocks on your account.
Demand for BNPL (Buy Now Pay Later) solutions is rising across the globe as living costs increase. BNPL loans stand out among other credit offers as they are interest-free if paid on time. At the same time, they often lack proper customer protection features.
Regulators in different regions are starting to address the issue. For instance, in the US, where the BNPL demand is steadily growing, the Consumer Financial Protection Bureau (CFPB) announced plans to tighten up regulation of BNPL firms with the same baseline consumer protections that work for credit cards.