Commonwealth Bank has unleashed Australia’s latest buy now, pay later competitor StepPay on the market, combining the pay-in-four functionality of competitors like Afterpay with the merchant fee structuring of traditional credit cards.
StepPay, launched Wednesday, marks the first foray into the BNPL sector by one of Australia’s major banks, and an attempt to reverse the tidal wave of young Australians seeking credit card alternatives.
The Sydney Morning Herald reports some 86,000 eligible Commonwealth Bank customers who pre-registered can now access the new StepPay system through their digital wallets, for use anywhere MasterCard payments are accepted.
Purchases of more than $100 are automatically split into four even fortnightly payments, with no interest, monthly, nor annual fees charged to the buyer.
However, StepPay transactions will be treated by both Commonwealth Bank and MasterCard as credit card payments, differentiating the new market entry from established players.