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NAB to launch BNPL product

National Australia Bank is inviting customers to pre-register for the forthcoming launch of a new buy now, pay later offering, punningly dubbed 'NAB Now Pay Later'.

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NAB to launch BNPL product

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Under the scheme, NAB customers will be able to access up to $1,000, split purchases into four payments, use it anywhere Visa is accepted and add NAB Now Pay Later to their digital wallets for online and in person payments.

Unlike other instalment payment or pay-in-four products, NAB’s offering has no late fees, no interest and no account fees.

NAB group executive personal banking Rachel Slade says: “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."

In October, NAB rival ANZ announced that it was joining forces with Visa to bring its instalment payments product to Australia, enabling the bank's credit card customers to buy now, pay later at the checkout.

Set for launch in July, NAB Now Pay Later has been built for mobile with a range of new technology, including instant credit decisions and safety and security features.

“In the time it takes for a customer to go from the fitting room to the register, we’ve assessed their application, undertaken a credit check and opened an account with a virtual card so they’re ready to purchase,” says Slade. “We’re able to do this quickly because of the combination of technology and knowing our customers."

The virtual card also features biometric fraud detection and a dynamic CVV that refreshes regularly to protect customers from fraud and theft.

NAB Now Pay Later follows the the bank's launch of StraightUp, Australia’s first no interest credit card, in September 2020.

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Comments: (1)

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

In BNPL Ain't Killing Banks. It's Making Them Rich, I highlighted how Nonbank BNPLs are stealing a march over Bank BNPLs by effectively running a Point of Sale financing product as "Point of Aisle". 

By approving the loan in the time "it takes for a customer to go from the fitting room to the register", NAB seems to be operating in the Point of Aisle territory i.e. higher in the purchase funnel. If so, it's the first bank I know to do so.

On a side note, 'NAB Now Pay Later' is a great play on words. Kudos to NAB.

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