NAB to introduce buy now, pay later product placing further pressure on existing operators

NAB’s buy now pay later product will allow customers who pass a credit check to split purchases of up to $1,000 into four payments, with no interest, late fees or account fees. Photograph: Asanka Ratnayake/Getty Images

NAB will become the third of the big four Australian banks to offer a buy now, pay later (BNPL) product to customers, putting additional pressure on standalone operators battling corporate losses amid rising interest rates that make it harder to survive.

The bank will offer its NAB Now Pay Later product from July using the existing Visa credit card system, meaning it will not have to sign up merchants to offer the service in the same way that standalone operators Zip and Afterpay do.