NatWest has announced its intention to stop the Buy Now, Pay Later (BNPL) product.
The mentioned decision of the financial institution is because the specified offer did not arouse much interest from customers. Consumer demand for this product turned out to be lower than the bank initially expected. It is worth noting that the decision of a financial institution will enter into force over time. The bank will stop offering the BNPL service on May 7, the current year.
NatWest, which is one of the largest players in the United Kingdom banking sector, has launched the product, the decision to end which was made this week, was launched in the summer of 2022.
A representative of the financial institution, during a conversation with media representatives, said that after the termination of the BNPL service, NatWest will focus on core lending products, including loans, overdrafts, and credit cards.
The bank informed customers who have active BNPL plans that this product will be stopped. The mentioned services’ consumer accounts will be closed when they complete their repayment periods.
Bank customers who have a credit card can use NatWest installment plans. These solutions have proven to be more popular among consumers than BNPL.
Currently, there are several service providers in the United Kingdom, that NatWest has decided to abandon. American Express launched its Plan It BNPL in the UK in February. Monzo and Klarna also provide this product. Moreover, several specialized BNPL providers are operating in the financial services market of the United Kingdom.
As we have reported earlier, NatWest Sees Revenue Dropping.
