Suncorp announces its own BNPL service PayLater

Suncorp is set to launch its own buy now pay later (BNPL) service as the bank looks to create more payment options for customers.

The bank will officially launch the service in November via the Suncorp mobile banking app.

PayLater customers will be able to make repayments in four instalments.

It will be available at any retailer that accepts Visa, with initial purchase limits of up to $1000.

It's expected PayLater will be available across more than 70 million global merchants.

Suncorp is the second bank to launch its own BNPL service, following the release of StepPay by CBA in August.

In efforts to distinguish itself from the likes of CBA, Suncorp's new service will offer consumers both a physical and digital card for both online and in-store purchases.

Suncorp PayLater users will receive a separate physical Visa debit card, designed yellow to contrast with Suncorp’s standard green debit cards.

Visa group country manager for ANZ and South Pacific Julian Potter said the BNPL space sector is “rapidly evolving” as consumers look for choice in the payments market.

“The buy now pay later sector is rapidly evolving as consumers increasingly look for flexibility and choice in the way they pay, both in-store and when shopping online," Potter said.

“We’re excited to partner with Suncorp to deliver a seamless and secure digital payment experience that offers customers the convenience of paying in instalments anywhere Visa is accepted and enables more businesses across Australia to grow.”

Suncorp customers can apply for PayLater through the app or online where the bank will assess eligibility through a credit check.

Customers will have the option to change repayment dates by up to six days in efforts to help better manage money.

PayLater won’t be able to be used for cash advances and gambling transactions.