Commonwealth Bank believes joining the emerging BNPL sector would most the ‘expedient way’ for regulation to be introduced.
One of the reasons why Commonwealth Bank of Australia (CBA) claims it decided to enter the buy now, pay later (BNPL) market was because it thinks it would motivate policy makers to step up the way the emerging sector is currently regulated. The bank recently released StepPay, a BNPL offering that links to its customers’ bank account, can be used anywhere debit and credit payments are accepted for transactions, and there are no ongoing fees. There are also no additional costs to businesses, other than standard merchant fees. «One of the reasons why we entered the space as we actually thought that perhaps the most expedient way for regulation to be introduced in that sector would be for us to offer it. That hasn’t today been forthcoming,» CBA chief executive Matt Comyn told the Standing Committee on Economics on Thursday. BNPL allows individuals to purchase goods without immediate payment. Instead, users can pay for the purchase of a good later or in instalments. When signing for BNPL services, such as Afterpay and Zip Co, customers are not required to undergo credit checks — they can just sign up and spend. This was one of issues that ANZ boss Shayne Elliot raised during the parliamentary review of the four major banks and other financial institutions. He pointed out that, unlike other financial services, the sector is not bound by legal obligations despite similarities in product offerings.
