The National Australia Bank Ltd (ASX: NAB) share price is gaining this morning as the bank reveals a buy now, pay later (BNPL) offering of its own.
NAB Now Pay Later will go up against Commonwealth Bank of Australia (ASX: CBA)’s StepPay, as well as ‘traditional’ BNPL companies such as Zip Co Ltd (ASX: ZIP) and Afterpay (now owned by Block Inc (ASX: SQ2)).
At the time of writing, the NAB share price is $31.86, 0.63% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.04%.
Let’s take a closer look at the ASX’s latest BNPL product.
NAB launches BNPL product
The NAB share price is in the green as the bank reaches what arguably appears to be a rite of passage for ASX 200 banks – jumping aboard the BNPL train.
NAB Now Pay Later will allow NAB customers to buy up to $1,000 worth of goods and pay in four fortnightly installments. It can be used anywhere that Visa Inc (NYSE: V) is accepted.
Interestingly, NAB’s offering differs from most other BNPL products by ditching all fees. It charges no late fees, no interest, no account fees, and has no minimum spend.
The product can be accessed through the NAB app. The bank’s executive of personal banking Rachel Slade noted customers can be approved to use NAB Now Pay Later while moving “from the fitting room to the register”.
“We’re able to do this quickly because of the combination of technology and knowing our customers,” Slade continued.
“We know their banking and credit history and we’re assessing them based on our existing banking relationship.”
It follows the release of NAB’s no interest credit card in 2020. The card has accounted for 30% of credit card applications over the past year, making it NAB’s most popular credit card product.
The bank expects NAB Now Pay Later to officially launch in July. Customers can pre-register for the product now.
NAB share price snapshot
The NAB share price is outperforming the ASX 200 by 13% in 2022.
The bank’s stock has gained around 8% since the start of the year. It’s also nearly 19% higher than it was this time last year.
The post NAB share price lifts amid BNPL product reveal appeared first on The Motley Fool Australia.
Should you invest $1,000 in NAB right now?
Before you consider NAB, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NAB wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Why is the NAB share price having such a cracker of a day?
- ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
- 3 reasons this broker thinks the NAB share price is great value
- Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising
- Has the NAB dividend been growing?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and Visa. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/Q7CaDtv
Leave a Reply