Suncorp becomes the latest big bank to unveil a BNPL offering
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Consumers looking for BNPL products just got another choice in the market, with Suncorp (ASX:SUN) putting its hat in the ring.
Suncorp’s BNPL product, called PayLater, will be available to its customers from November. It will include both a physical and digital Visa card.
Suncorp says it will be accepted wherever Visa is accepted (which is over 70 million merchant locations worldwide).
The bank says it will conduct credit checks to determine customer eligibility but these would be quick.
PayLater allows for the industry’s magic number of four instalments – spread over fortnights and has a limit of $1,000. There is a two day grace period for missed repayments but otherwise is capped at a $10 late fee per purchase.
Cash advances and gambling transactions are prohibited.
Suncorp joins Citi and the CBA as big banks with a BNPL offering as well as Latitude Financial (ASX:LFS) and about a dozen fintech companies on the ASX small and large led by Afterpay (ASX:APT) and approximately half a dozen others off the ASX including Bundll and Limepay.
Suncorp’s CEO Clive van Horen said his firm’s BNPL option – which he described as a “simple, short-term payment option from a trusted and secure bank” would be better both for consumers and for merchants.
“PayLater is available via the Suncorp App which can help you budget easily since everything’s in one place and there’s no need to download separate apps,” he 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.
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Note: Figures in yellow denote performance since IPO.
|HUM||Humm Group Limited||0.925||-2||-6||-17||$468.0M|
|LBY||Laybuy Group Holding||0.535||2||2||-62||$133.6M|
|NOV||Novatti Group Ltd||0.51||2||4||113||$161.9M|
|Z1P||Zip Co Ltd.||6.96||3||-11||-2||$3.8B|
The ASX BNPL sector is up a healthy 67% in 12 months.
But this is lower than the figure is 108%, if the three IPOs in the past 12 months are included. In the past month, since the Afterpay-Square tie up was unveiled, the sector is slightly down – by around 1%.
While most BNPL stocks initially rose, many subsequently retreated as investors realised the impact the deal would have on the competitive landscape.
Today the BNPL sector had a mixed response to Suncorp’s entry.
The “best” performer Sezzle (ASX:SZL) which gained just under 4%.