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August 19, 2021

CBA launches StepPay to foray into Australia’s BNPL market

Commonwealth Bank of Australia (CBA) has entered the buy-now-pay-later (BNPL) market with the launch of its BNPL platform, dubbed STEPPAY .

Free Report
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What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

The new offering will allow customers to split the payment into four fortnightly instalments for transactions higher than $71.1(A$100) with low credit limits up to $717.11 (A$1,000).

The lender stated that over 86,000 customers have already pre-registered for StepPay, which is linked to CBA bank account.

The service will only be available to eligible customers and StepPay will charge a fee of A$10 for every missed instalment repayment.

CBA noted that customers are approved for its BNPL offering based on specific eligibility and credit assessments.

CBA executive general manager Marcos Meneguzzi said: “We are excited to create the first BNPL from a major bank which can be used anywhere our cards are accepted. We know BNPL is a popular choice among customers but is hampered by its limited use and availability in only selected retailers and businesses. With StepPay, customers have freedom around where they’d like to shop, offering the same accessibility as our other CBA cards.”

The news comes shortly after Square signed a $29bn deal to acquire Australian BNPL fintech Afterpay.

Last month, Afterpay launched a banking app in Australia where it is said to be a leading player in the BNPL market.

Last week, National Australia Bank agreed to purchase the consumer business of Citigroup in a deal valued at $880m (A$1.2bn).

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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