Westpac will offer its credit card customers the option of an interest-free pay-in-four instalment.
The bank announced yesterday that customers with its Low Rate, Lite, Low Fee, Altitude Rewards Platinum and Altitude Rewards Black credit cards will be able to link their account to a new PartPay digital card.
The customer’s existing card limit will apply to PartPay transactions.
Customers will make an initial payment when purchasing and then three fortnightly payments. Payments will be deducted automatically from a linked account.
No interest fees and no late payment fees are charged. However, if a payment is missed, the instalment will be transferred to the credit card purchase balance and standard interest rates will be applied.
Customers using PartPay will get the same features available with standard credit card transactions, including rewards and complementary insurance.
Westpac will also offer an extended instalment payment option, SmartPlan, where customers can split credit card repayment on prior transactions into instalments for up to 12 months.
Comparison site RateCity said instalment plans attached to credit card accounts are commonplace, with about 16 in the market. What makes Westpac’s PartPay different is that most plans allow consumers to choose the instalment option after the purchase is made, rather than at the point of sale.
“This is where Westpac’s PartPay is more closely aligned to many buy now pay later services,” RateCity said.
In December, Westpac launched a cashback rewards program working with rewards business ShopBack Group. Westpac debit and credit card customers can access cashback offers via a dedicated Westpac hub in the ShopBack app and website.
Customers visit the ShopBack website or download the app, and add an eligible Westpac debit or credit card for purchases.
The rewards can be used when making purchases or transferred to the customer’s bank account.