From the Sydney Morning Herald:
The Commonwealth Bank will take on market darling Afterpay directly by joining the rush into the booming buy now, pay later (BNPL) sector from the middle of this year.The banking giant on Wednesday said it would launch a product allowing its customers to make purchases between $100 and $1000, and repay the money in four interest-free fortnightly instalments.
In a sign of the pressure the bank’s move could put on BNPL margins, CBA said it would not charge any extra fees to merchants beyond standard merchant fees of slightly more than 1 per cent of a transaction’s value.
In comparison, CBA said retailers on average paid about 4 per cent for BNPL services, which were costing businesses hundreds of millions of dollars a year in fees.
