Westpac Launches 0% Interest Rate Credit Card to Support Buy Now, Pay Later Industry

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Westpac has announced the launch of an interest-free credit card, similar to those launched by competitors to the big banks, CBA and NAB last year.

Westpac’s “Flex” credit card, available to customers in the coming months, will have a maximum credit limit of $ 1,000 with no interest charges, no late fees and no currency conversion fees.

The card has a monthly fee of $ 10, which is waived if you don’t use the card or pay off the balance by the due date each month.

Since launch, CBA and NAB have declared their interest-free cards to be their most popular new credit cards.

HOW DO BIG BANK CARDS COMPARE?

The biggest difference between Westpac Flex and its large competing banks is that the maximum credit limit is only $ 1,000, compared to $ 3,000 for CBA and NAB cards.

Westpac Flex CommBank Neo NAB StraightUp
Interest charges 0% 0% 0%
Late payment fees $ 0 $ 0 $ 0
Exchange fee 0% 0% 0%
Maximum credit limits $ 1,000 Between $ 1,000 – $ 3,000 Between $ 1,000 – $ 3,000
Monthly fee $ 10 / month

Waived if you do not use the card and have a balance of $ 0.

Limit of $ 1,000 = $ 12 / month

Limit of $ 2,000 = $ 18 / month

Limit of $ 3,000 = $ 22 / month

Waived if you do not use the card and have a balance of $ 0.

Limit of $ 1,000 = $ 10 / month

Limit of $ 2,000 = $ 15 / month

Limit of $ 3K = $ 20 / month

Exempt if customers pay the amount due for the previous month on time.

Minimum monthly repayments $ 40 per month 2% of the balance or $ 25, whichever is greater. Between $ 35 and $ 110, depending on the credit limit.
Other Access to offers and advantages via the loyalty program Access to offers and advantages via the loyalty program N / A

Source: RateCity.com.au

RateCity.com.au Research Director Sally Tindall said, “Bigger isn’t better when it comes to credit cards.

“Over the past year or so, Westpac has seen the NAB and CBA win back Gen Z and Millennials with their zero percent cards, and he wants to be part of the action,” she said.

“Westpac bends over backwards to serve what young Australians say they need and want. The bank already offers savings rates of up to 2.5% to 18-29 year olds. Now it targets millennials looking for credit with fewer terms.

‘The bank was quick to join forces to buy now, pay later, the market leader Afterpay. It is now aiming to expand its own Gen Z and Millennial customer base through this new zero percent credit card.

“Like CBA and NAB, Westpac offers no interest payable, no currency conversion fees and no late fees. However, Westpac has put more stringent checks and balances on this new card, with a credit limit of just $ 1,000 and higher minimum repayments that force customers to write off their debt faster.

“Westpac’s new Flex card could be ‘interest-free’, however, customers could end up spending $ 120 a year in fees if they don’t pay off their debt in full each month.

“For more than five years, banks have watched buy now, pay later vendors like Afterpay plunder their customers. The banks have tried to beat them, now they are looking to join them in an effort to win back those customers, ”she said.

Westpac Flex vs. BNPL

With buy now, pay later vendors drawing millions of customers to each other, the big banks were forced to come up with a credit card to compete.

How do the new cards compare to BNPL?

Westpac Flex After payment Postal payment
Interest rate 0% 0% 0%
Credit limit Up to $ 1,000 $ 2,000 $ 1,500
Late fee $ 0 $ 10 per late refund. An additional $ 7 if you don’t pay within 7 days. Maximum charge of 25% or $ 68, whichever is lower. Late fee of $ 5 after 21 days of non-payment of the minimum.
Ongoing charges $ 10 per month in use and debt due on due date. $ 0 $ 6 / month if you have the cash to pay.
Where can you use it? Wherever Mastercard is accepted. Not for gambling or cash advances Affiliate retailers only. Anywhere a credit card is accepted.
Repayment schedule $ 40 minimum per month 4 payments over 6 to 8 weeks Minimum refund of $ 40.

Source: RateCity.com.au


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