Existing NAB customers can pre-register for the BNPL service, which is expected to become available in July and can be used in store or online anywhere that accepts Visa.
NAB’s new BNPL service will have no late fees, no interest and no account fees and will also provide customers a virtual card with revolving security number (CVV).
A NAB spokesperson told Savings.com.au in the case of a customer missing a repayment, their NAB Now Pay Later account will be blocked - the customer’s linked transaction account is not blocked.
NAB will then contact the customer to provide options to help them to get back on track.
Customers are unable to go into a negative balance on their NAB Now Pay Later account.
NAB is the last of the major banks to join the instalment payment world: Westpac has teamed up with Afterpay; CBA has a stake in Klarna and its own platform; and ANZ has joined 'Visa Instalments'.
NAB Group Executive Personal Banking Rachel Slade said NAB Now Pay Later would approve customers based on eligibility and credit assessments.
“Customers will be able to activate NAB Now Pay Later via their mobile where a credit check will be completed," she said.
"This will ensure customers can have the confidence to appropriately manage their repayments, both today and in the future.
“Hundreds of thousands of NAB customers are using instalment payment services so we’ve created NAB Now Pay Later to make this option simple and digital for them.
“It’s also safer than the alternatives as these are already our customers. We know their banking and credit history and we’re assessing them based on our existing banking relationship.
“We know the way our customers are choosing to pay is changing and they’re demanding simple and easy to understand credit.
“With NAB Now Pay Later integrated into the NAB app, it will be visible alongside other NAB products like transaction accounts."
Image by Jonas Leupe via Unsplash
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