ANZ Banking Group is set to launch a buy now pay later (BNPL) service through a partnership with Visa that will give credit card customers the option to pay for items in instalments.
The move will see ANZ join banks like the Commonwealth Bank who was the first major bank to launch its own service titled StepPay, and Suncorp who recently annouced plans to introduce its own BNPL service PayLater.
Westpac is expected to introduce the Visa Instalments solution next year, which will be made available to customers shopping through merchant payment provider, Quest Payment Systems.
Customers will be able to make interest free purchases online or in-store with the option to repay the balance up to 24 months after the purchase, depending on terms of the repayment plan.
Purchase history plus repayment information and balances can also be viewed through the ANZ mobile app.
Visa first launched its BNPL offering as pilot in 2019 before extending the solution to the US, Canada, Malaysia and Russia.
ANZ head of cards and personal lending Mike Shurlin said ANZ is looking to provide “customers with flexibility in how they manage their purchases”.
“We know many of our customers will use this option for certain purchases while choosing a standard credit card transaction for other items,” he said.
“Having that choice with no need for additional steps means they have a simple and secure feature through their existing card.
“We have partnered with Visa many times in the past and share a focus on building features that make customers’ lives easier while maintaining high security standards.”