The Suncorp Group Ltd (ASX: SUN) share price is having an uneventful day following its latest media release.
At the time of writing, Suncorp shares are up just 0.39% to $12.71 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.61% to 7,476 points.
What did Suncorp announce?
Investors appear unfazed by the company's entry into the buy now, pay later (BNPL) market, moving Suncorp shares only marginally higher today.
According to the release, Suncorp has introduced its new BNPL offering in partnership with credit provider, Visa Inc (NYSE: V).
The BNPL solution, called "PayLater" will comprise both a physical and digital Visa debit card. This can be used in-store and online at more than 70 million merchant locations worldwide.
The offering is expected to be available to Suncorp customers via the Suncorp app sometime in November 2021.
Eligible customers are reportedly able to receive quick approval when applying online or through the Suncorp app. However, this will be primarily based on a credit check to assess the customer's propensity to pay.
Once approved and when purchases are made, the payment plan will be split over four separate and equal interest-free instalments.
The card will have a limit of $1,000 per customer.
Suncorp CEO Clive van Horen touched on the bank's latest product offering, saying:
Some customers prefer to use credit cards, while others want simple, short-term payment options from a trusted and secure bank.
This solution is also a win for Australian businesses, many of whom are doing it tough right now as we learn to live with COVID-19. Our PayLater offering eliminates additional costs to those businesses who are currently paying millions of dollars in traditional BNPL fees.
Suncorp share price summary
Over the past 12 months, Suncorp shares have accelerated by 40% with a year-to-date rise of 30%. The company's share price reached a 52-week high of $13.26 last month before investors took profit off the table.
Suncorp presides a market capitalisation of roughly $16.2 billion, making it the 29th largest company on the ASX.
