Westpac has announced plans to launch a zero-interest digital credit card as its offering in the buy now pay later market.

Flex, which is currently in a pilot program, has a A$1000 credit limit, no interest on purchases, no late payment fees and a $10 monthly fee that is waived if customers clear the previous month’s balance on time.

Repayments will be via direct debit from a nominated account. If a payment is missed the card will be suspended.

The bank is aiming for a “complete digital experience”. It will issue digital cards that can be used via the banking app or mobile wallet. All card services will be managed through online banking.

It is promising fast approval times, using “real-time digital data assessment” to review an applicant’s financial position and provide access “in minutes”.

A new security feature is dynamic CVC, which issues a new code every 24 hours to help protect customers rom online fraud.

The product will be pitched at younger customers, who are less inclined to use a traditional credit card.