Monday, August 19, 2019

Citi Pilots Credit Card Installment Loans Down Under

As the lady said: "What fresh hell is this?"
Citi Australia wants in on the burgeoning buy now, pay later market and is launching a new installment loan product with Kogan that will swap flat rates for interest rates, The Sydney Morning Herald reported on Sunday (Aug. 18).

Following in Afterpay’s footsteps, the leader in “buy now, pay later” payments, Citi is forming a partnership with online retailer to let existing credit card customers switch to installment loans at the point of sale (POS).

The fee will be calculated as a percentage of the purchase price, ranging from 0.5 percent to 5 percent, depending on the loan’s length.

Choong Yu Lum, Citi’s head of cards and loans, said the buy now, pay later sector is hot, and the bank is planning to let more merchants have access to the offerings.

“We think that a lot of the big four are trying to race towards participating in the space of buy now, pay later,” Lum said.

Citi’s research shows customers would feel better using a buy now, pay later plan through a traditional lender, the article said....