The Suncorp Group Ltd (ASX: SUN) share price has been in the red all day after the banking and insurance company announced the launch of its buy-now, pay-later product today.
At the time of writing, Suncorp shares are trading 1.06% lower to $10.69 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.18% at 7,266 points.
What did Suncorp announce?
According to its release, Suncorp has entered the BNPL market, launching its newest product to customers.
The BNPL solution, called PayLater comprises both a physical and digital Visa debit card. This can be used in-store and online at more than 70 million merchant locations worldwide.
Suncorp said eligible customers would receive a 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 and can be used for purchases of $50 or more.
This comes just in time for the Christmas holiday season, with consumers traditionally spending over the period. The company's research revealed TV's, Christmas presents and clothes were considered the top three purchase categories in the BNPL space.
Management commentary
Suncorp CEO Clive van Horen touched on the bank's newest product offering, saying:
Suncorp Bank PayLater comes with no extra costs to customers making payments, nor to businesses taking payments. This is a win for Australian businesses who are currently paying millions of dollars in traditional BNPL fees, on top of other cost pressures.
Eligible customers now have the option to head in-store with their physical PayLater Visa debit card or to use it online via their digital wallet.
Suncorp share price summary
Over the past 12 months, the Suncorp share price has gained almost 5%, with year-to-date up around 10%. The company's share price reached a 52-week high of $13.26 in September, before treading lower in the following months.
Suncorp presides a market capitalisation of roughly $13.48 billion, making it currently the 38th largest company on the ASX.
