‘Buy Now Pay Later’ is a way of paying for purchases online and instore without having to pay the whole amount upfront, instead paying in instalments or at an agreed later date. BNPL services has grown in popularity in the recent years, mainly due to the increase in cost of living.
NatWest will be the first UK high street bank to enter the buy now pay later (BNPL) market, the bank will launch the BNPL service in summer 2022 according to sources.
Kelly Devine, Division President for Mastercard UK and Ireland, added: “Offering people choice in how they pay is at the heart of what we do, so we are working closely with NatWest Group to give customers greater flexibility and control in how they pay and where they shop.
David Lindberg, CEO of Retail Banking at NatWest, said: “There’s a clear demand for Buy Now, Pay Later and we are determined to make it better and safer.
“We have listened to our customers and are excited to provide them with a proposition that gives them greater flexibility to manage their finances. Customers told us they value fraud protection on purchases and useful tools and reminders to help them budget.”
“They also like the convenience of managing Buy Now, Pay Later purchases alongside their other NatWest accounts.”
The bank has said they will offer structured repayment schedules and affordability checks to ensure they are complying with regulation and in the best interest of the consumer.
NatWest said by offering a fixed credit limit, the customer will know in advance and will be able plan their purchases with confidence. Consumers will also be able to keep track of their repayments using the mobile app.
With a service such as BNPL people can easily find themselves in debt. Industry experts have voiced their worries over the issue. Interest rates are high, if the consumer fails to pay back the full amount within the agreed time frame.
Date: May 30, 2022