$1 Club, page-18060

CBA Buy Now Pay Later is not BNPL in its traditional sense.

CBA will charge merchants normal credit card fees of around 1-1.5% of the transaction value. Not the traditional BNPL fee of around 4%.

The whole 4 interest free repayments will then be managed by CBA and it'll be on transactions between $100-$1000.

There will be little rollout costs and they'll have every merchant on the planet that accepts Visa/MasterCard. To me this is not BNPL, rather a line of interest free credit with terms (to be repaid in 4 fortnightly repayments)

This won't be the death of the credit card either as most people will want higher credit limits than their BNPL offering of $1000.

CBAs BNPL offering is likely to be on a digital card linked with their mobile banking.

Not a major threat IMO as it really only targets CBA customers as not many people would open a CBA account just to get this service when the likes of APT is widely accepted and can use any bank.