NAB launches a new product Buy now, pay later without commissions

The hyper-competitive sector buys now, pays later has a brand new player, a name many will know.

Fiercely Competitive Space Buy Now, Pay Later has a brand new competitor, with the National Australia Bank taking a step to reward buyers away from the likes of Afterpay, Zip Co, Step Pay and Klarna.

From Thursday, NAB customers can pre-register for early access to the new “NAB Now Pay Later” product, which, like similar services, allows people to take their gifts home immediately by staggering payments over several weeks.

NAB Now Pay Later customers can split purchases up to $ 1000 into four fortnightly payments to any location wherever visa is accepted, including supermarkets and petrol stations.

However, unlike others, the big four lenders do not boast overdue fees, interest and account fees.

Canstar money expert Effie Zahos said she imagines that acceptance by NAB customers will be very high given the rising cost of living.

“NAB’s latest BNPL offering is different from CommBank’s BNPL offering and most other BNPL providers in that it does not charge a fee for the delay. It is essentially a revolving line of credit for which consumers pay nothing, apart from the purchase cost, ”said Zahos.

Rachel Slade, executive of the NAB personal banking group, said that because the users were already bank customers, their banking and credit histories were easily accessible.

“Hundreds of thousands of NAB customers use the installation’s payment services, so we created NAB Now Pay Later to make this option simple and digital for them,” said Ms. Slade.

Customers who pre-register for NAB Now Pay Later via the NAB website will have the first login to claim the product from its release scheduled for July.

HOW DO IT COMPARE?

To find out how NAB Now Pay Later compares to other major BNPL players in the market, including CommBank’s Afterpay, ZipPay, Humm and Step Pay, Canstar analyzed the costs associated with the $ 500 purchase, as well as the cost of non-payment. on a $ 150 purchase.

Their analysis shows that NAB Now Pay Later is the only BNPL service that doesn’t charge late fees along with PayPal Pay in 4, making it an affordable option alongside its competitors.

CommBank’s Afterpay and StepPay both charge late payment fees of $ 10 for the first failed installation, while ZipPay, Humm, and Klarna also charge late payment fees of $ 6 or less.

When looking at the cost of a $ 150 payment lost between different BNPL providers, the Canstar analysis shows that NAB Now Pay Later and PayPal Pay in 4 customers would pay $ 0 in commissions, making both of these services the most affordable options.

Both CommBank Afterpay and Step Pay customers would pay the highest percentage in commissions, totaling 6.67% of the original purchase value after the first non-payment.

Originally published as “No late fees, no interest and no account fees”: NAB launches new product Buy now, pay later

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