ANZ is now offering BNPL services to its customers, although the CEO criticized the installation fees industry at the beginning of the year.
ANZ has partnered with Quest Payments Solutions to buy the now-crowded, ‘nonprofit’ BNPL space with the BNPL service – ‘Visa Installations’.
Existing ANZ customers can now get visa installations when they use their credit cards in the store and online without any further action.
Visa installations offer ‘more flexible’ payment plans for three to 24 months, and customers can view their BNPL history in their existing banking applications.
The announcement comes after ANZ CEO Eliot openly stated that he was “not interested in participating” at the BNL.
In March, he called for a better legal framework for BNL companies, eliminating mandatory checks, and said BNL would “fight” the concept of non-debt.
“I personally struggle with that, I think people with a lot of thinking fight that definition. But in any case, it will be the same, ”said Mr. Eliot.
Mr Eliot also said ANZ would not accept a “pig lipstick” strategy to add new digital products without further “fundamental changes” to the business model.
Mr. Eliot: “We can say, ‘Yeah, you know, buy it now, go later, neo-bank, that kind of thing, we’ll buy some.’
I really don’t think that will fundamentally change the business.
It is working with Visa to allow merchants to accept visa shipments ‘seamlessly’ and ‘quickly’.
Traders with Quest-integrated point-of-sale (POS) software do not need to make any changes to integrate this new BNPL product.
ANAS expects the new product to be accepted by Australian consumers.
A recent visa survey found that 90% of respondents were more likely to use banking options.
In addition, 85% of the installation options will improve their relationship with the card issuer.
Julian Potter, general manager of the visa group for Australia, New Zealand and the South Pacific, described BNP’s demand as “overwhelming” with existing financial institutions..
“We are proud to be working with our long-time partner ANZ on the first stage of ground-breaking visa installations – without shops and eCommerce channels.
Australian credit cards can now be purchased and paid later.
According to Mike Schurley, head of ANZ Cards and Private Loan, ANS is always looking for products and services that add ‘real value’ to its customers, and many are looking for installation options.
“Visa installations mark all the boxes in terms of flexibility, security and ease of use, which allows us to add more options and create better experiences for our credit card customers,” Mr Shurley said.
ANZ is late to the party
ANAS is currently the last of the four major banks to join the BNPL.
The Commonwealth Bank (CBA) has partnered with Swedish BNL ‘Clarina to enter the Australian and New Zealand markets early last year. BNPL is offered to both CBA and non-CBA clients.
In addition, CBA recently launched its own BNPL ‘StepPay’, which competes primarily with Larna in the BNPL space.
Upon acquisition by NAB City in August 2021, the largest bank is set to acquire the City’s BNP spot.
Westpack has partnered with Afterpay to provide “white label” trading accounts.
It also had a $ 50 million stake in BNPL Zip before selling for about $ 300 million last year.
‘Clear division’ between big banks and ‘uncontrolled’ and ‘non-profit’ Fintech technologies
Critics were quick to criticize the “crowded”, “uncontrolled” and “unprofitable” BNPL space.
Grant Halverson, Former Citi and Diners Club executive, highlighting 27 competing BNPL apps trying to reach size.
Twelve of these are listed in the Australian Stock Exchange (XX) as “no profit” The total annual market capitalization is $ 35.75 billion.
“As of August 2021, the losses are $ 1.65 billion,” said Mr. Halverson.
Mr Halvenson described the BNAP as an “unsecured loan” and said 30% of its income was “bad debt.”
“There is evidence that BNPL apps only pay for merchandise after shipments, which may be days or weeks after purchase,” Mr Halvenson said.
Debit and credit cards are required to pay merchants upon receipt of the transaction.
More to Come on …
Image on Forest Simon Unsplash