Citibank Australia has rolled out ‘buy now, pay later’ service for its existing credit card customers.
The lender partnered with online retailer Kogan.com to offer this service, reported The Sydney Morning Herald.
The service will enable existing credit card customers to avail instalment loans at the point of sale while making online purchases.
A flat fee will be applicable on such loans, instead of interest. The amount of fee will depend on the purchase and term of the loan.
The borrowed amount can be paid back over a period of three months, one year, 18 months or two years.
The move comes at a time when several such schemes were introduced in the Australian market that allows making purchases while delaying payments.
Citi head of cards and loans Choong Yu Lum was quoted by the publication as saying: “The buy now pay later sector has seen rapid growth, increasing five-fold in the last two years alone, according to data from ASIC.
“This highlights that consumers want more ways to manage their payments, and we’re proud to be the first bank in Australia to enter this sector.”
Citi is the fifth largest credit card issuer in the country.
In June, Citigroup partnered with Singapore based ride-hailing company Grab to launch co-branded credit cards. The move was aimed to increase its customer base in South East Asia.