Citi Australia has introduced its first BNPL (Buy Not Pay Later) service in conjunction with Kogan, along with a new points plan to get it rolling.
According to research by Citi, while 95 per cent of Australian shoppers are aware of BNPL platforms, only one in five have used them in the past. Over half of the Aussies who were surveyed by Citi said they would prefer to take out an instalment plan from a bank rather than a ‘non-traditional’ lender.
There have been tens of BNPL platforms arriving in Australia, such as humm, Afterpay, Open Pay and Zip. With so much choice for Aussies to decide from, it’s getting harder for them to make an informed decision on what’s best for the shopper. ““The buy now pay later sector has seen rapid growth, increasing five-fold in the last two years alone, according to data from ASIC. This highlights that consumers want more ways to manage their payments, and we’re proud to be the first bank in Australia to enter this sector,” said Chong You Lum, Citi’s Head of Cards and Loans. ““We think it’s great for consumer choice that there are a number of players offering buy now pay later options. At Citi, we aim to target those consumers who are more comfortable using a traditional lender.”
As part of the introduction of Citi’s new BNPL platform, it has partnered with Kogan to offer a payment instalment service for Citi customers. Those who make a purchase with Kogan and are Citi customers, are eligible to ‘shop with points’ via the Kogan site, ‘meaning that at the touch of a button, Citi customers who have enrolled their eligible rewards credit card with Kogan can use their points to cover all, or part of their purchase’.
““We know 78 per cent of surveyed Australians are concerned about their debt, and through both our shop with points and instalment offers, we aim to give our customers choice when it comes to how they want to pay for their purchases,” Mr Lum explained. “The younger generation is particularly concerned about debt, with 87 per cent of millennials identifying themselves as concerned. This generation is also the primary user of buy now pay later services, reflecting their willingness to use new tools for money management.”
New customers with Kogan can get ‘up to $400 cashback’ on their first spend at the marketplace. “Buy now pay later options have been popular on Kogan.com. The partnership with Citi is one more way we are making sure our customers get access to innovative payment solutions to have a seamless shopping experience,” said Ross Metherell, Director of Strategy at Kogan.