NatWest entering Buy Now, Pay LaterMarch 22, 2022 | London, UK
- Proposition designed to work better for customers with purchases split into several repayments
- Customers will be able to use and manage the buy now, pay later proposition in the NatWest mobile app
- Controls and safeguards to ensure product is right for customers with credit and affordability checks in place before customers start to spend
NatWest is set to be the first UK high street bank to enter the buy now, pay later market, with a proposition that gives customers the convenience to make a purchase almost anywhere that accepts Mastercard.
The product is aimed at helping customers in the moments when it matters, automatically splitting purchases into several repayments, providing customers with a smarter way to spread the cost.
David Lindberg, CEO Retail Banking NatWest, said: “There’s a clear demand for buy now, pay later and we are determined to make it better and safer. We have listened to our customers and are excited to provide them with a proposition that gives them greater flexibility to manage their finances. Customers told us they value fraud protection on purchases and useful tools and reminders to help them budget. They also like the convenience of managing buy now, pay later purchases alongside their other NatWest accounts in our award-winning app. These are just some of the features our customers will receive.”
The bank is planning on launching the new product in summer 2022 and will put in place safeguards to help ensure lending is affordable. Transactions will also be covered by all the protections customers expect from a fully regulated bank.
The new proposition will offer clear structured repayments, credit scoring and affordability checks. By offering a fixed credit limit, that the customer will know in advance, they will be able plan their purchases with confidence. The bank’s mobile app will help customers effortlessly use and manage their buy now, pay later product, enabling customers to monitor their repayments, view their outstanding balance and send notifications to help keep on track with payments.
Kelly Devine, Division President for Mastercard UK and Ireland, said: “Offering people choice in how they pay is at the heart of what we do, so we are working closely with NatWest Group to give customers greater flexibility and control in how they pay and where they shop. Buy now, pay later has become a popular means to spread the cost of a purchase and with NatWest we are co-creating a solution which benefits from Mastercard’s reach as well as our trusted relationships with consumers.”
The announcement of the new product follows the recent introduction of several features in the NatWest app which improve customers’ financial capability, including higher levels of personalised insights in our free, “Know My Credit Score” feature in the mobile app, as well as Round Ups to automatically round-up debit card transactions to the nearest pound and move the spare change to a savings account.
Notes to editors:
Customers using the NatWest buy now, pay later will be able to make purchases in sterling, and will exclude certain categories of spending, such as balance transfers, cash advances or gambling transactions.