Available to Suncorp customers from November, the offering can be used wherever Visa is accepted, at more than 70 million merchant locations worldwide.
Customers can split purchases over $50 into four interest-free fortnightly instalments, with a limit of $1,000 for eligible customers after a credit check has been completed.
There will be a two-day grace period for missed repayments and a capped $10 late fee per purchase.
For comparison, Afterpay, the biggest Australian buy now, pay later provider has an initial $10 late fee, and another $7 is charged if customers fail to meet the repayment within seven days of the due date.
The second biggest provider, Zip, has a $5 late fee and a $6 monthly account fee which is waived if you have no balance.
Suncorp's PayLater has no ongoing fees, and no foreign exchange fees for international purchases online.
Source: Suncorp.
Suncorp chief executive Clive van Horen said the launch benefited both consumers and businesses.
"Some customers prefer to use credit cards, while others want simple, short-term payment options from a trusted and secure bank," Mr van Horen said.
"PayLater is available via the Suncorp App which can help you budget easily since everything’s in one place and there’s no need to download separate apps.
"This solution is also a win for Australian businesses, many of whom are doing it tough right now as we learn to live with COVID-19.
"Our PayLater offering eliminates additional costs to those businesses who are currently paying millions of dollars in traditional BNPL fees."
PayLater allows customers to have a physical and digital Visa debit card that can be used both in-store and online.
It cannot be used for cash advances or gambling transactions.
Julian Potter, Visa’s Group Country Manager for Australia, New Zealand, and South Pacific, said the partnership with Suncorp gave consumers more options on how to pay.
“The buy now pay later sector is rapidly evolving as consumers increasingly look for flexibility and choice in the way they pay, both in-store and when shopping online," Mr Potter said.
"We’re excited to partner with Suncorp to deliver a seamless and secure digital payment experience that offers customers the convenience of paying in instalments anywhere Visa is accepted and enables more businesses across Australia to grow.”
Suncorp also announced all of its new debit cards would be made from recycled material, reinforcing its ambition to improve the sustainability of banking.
How many BNPL providers are there in Australia?
If you're thinking there must be a large range of BNPL offerings in Australia, you'd be right.
With Suncorp's foray into the sector, Savings.com.au research found there was now 20 BNPL providers operating in Australia.
You can see each of them in the list below, in no particular order:
- Afterpay
- Zip
- Humm
- Bundll
- Openpay
- CommBank BNPL
- Klarna
- PayPay Pay in 4
- Laybuy
- Latitude Pay
- PayRight
- Brighte
- Sezzle
- Pay It Later
- Fupay
- Limepay
- Splitit
- Flexibond
- Plan It by Amex
- PayLater
Related: Every BNPL provider in Australia compared.
Source: Suncorp.
Brooke Cooper
Hanan Dervisevic
Harrison Astbury
