UK-based challenger bank Monzo is reportedly planning to venture into the buy now pay later (BNPL) market.

The lender is planning to launch the BNPL product, and the announcement is expected soon, Evening Standard reported citing two sources familiar with the matter.

The report added that unlike some of its competitors, Monzo’s BNPL offering will feature affordability checks for customers and the lender will also share data with credit checking agencies, which will give other banks an insight into customer’s debt positions.

Notably, Monzo is being investigated by the Financial Conduct Authority (FCA) for a potential breach of money laundering regulations.

Last month, the lender reported a pre-tax loss of £130m in the year to February, which is 13% more than the previous year.

The company’s performance was affected by the Covid-19 pandemic, which forced it to slash 120 jobs in June 2020.

In February this year, Monzo extended its Series G funding round by raising an additional investment of £50m ($68m).

Earlier, reports emerged that another UK challenger bank, Revolut, is also planning to launch its BNPL product.

Revolut, which provides banking, investing, currency transfer and other money management services to some 16 million users globally, recently raised $800m at a $33bn valuation.

It is also in talks with the Australian regulators to secure a banking licence in the country.