Banking giant NatWest plans to enter the buy now, pay later market, enabling customers to split their purchases into several repayments from this summer. The Buy Now, Pay Later (BNPL) options often appear at online checkouts and they can help people avoid paying interest on their borrowing.
NatWest said its new proposition will give its customers the convenience to make a purchase almost anywhere that accepts Mastercard. But it pledged to put safeguards in place to help ensure lending is affordable.
Certain spending categories, such as gambling, cash advances and balance transfers will be excluded. The new proposition will offer clear, structured repayments, credit scoring and affordability checks, with a fixed credit limit which the customer will know in advance.
