Suncorp (ASX:SUN) share price remains flat despite BNPL offering

The company is expanding its current offering…

| More on:
Two mobile phones depicting Suncorp Visa cards

Image source: Suncorp

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.

Should you invest $1,000 in Suncorp right now?

Before you consider Suncorp, 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 Suncorp 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

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Top 10 ASX 200 shares today
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Monday.

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Monday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

Model bear in front of falling line graph, cheap stocks, cheap ASX shares
Share Market News

These are the 10 most shorted ASX shares

Short sellers are currently targeting these ASX shares...

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.

Can regulators prevent another US$45 billion crypto stablecoin meltdown?

Terra's LUNA token, meant to help its UST token remain pegged to the US dollar, has lost 99.99% of its…

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

ASX 200 midday update: Brambles rockets, Goodman upgrades guidance

The ASX 200 is having a decent start to the week...

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

Here's what to expect on the ASX 200 on Monday...

Read more »

Family of four celebrating inside a grocery store or supermarket
Share Market News

4 ASX shares of the most trusted brands in Australia

Which companies are best placed to attract the hearts, minds and wallets of consumers as interest rates rise?

Read more »

Coal-fired power station generic.
Energy Shares

How dependant on coal closure is the AGL share price?

Climate activists disagree with AGL's decision to hold onto coal, saying its depleting shareholder value.

Read more »