CBA (ASX:CBA) share price higher on StepPay BNPL launch

CBA has entered the BNPL arena…

| More on:
Investor looking at smartphone and considering Evolution's share purchase plan

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher on Wednesday.

In morning trade, the banking giant's shares are up 1% to $100.05.

Why is the CBA share price pushing higher?

Today's rise by the CBA share price appears to have been driven by an announcement relating to the bank's buy now pay later (BNPL) aspirations.

This morning the bank announced the launch of its Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) rival, StepPay, which is available to up to 4 million CBA customers.

StepPay, which can be used anywhere MasterCard is accepted, allows shoppers to make four easy, fortnightly instalments for transactions higher than $100. There are late fees of $10 per missed instalment repayment, with caps in place to minimise the amount of additional fees charged.

Positively for merchants, there are no additional merchant fees above standard service fees.

CBA's Executive General Manager, Marcos Meneguzzi, commented: "We're excited to create the first BNPL from a major bank which can be used anywhere our cards are accepted.  We know BNPL is a popular choice among customers, but is hampered by its limited use and availability in only selected retailers and businesses. With StepPay, customers have freedom around where they'd like to shop, offering the same accessibility as our other CBA cards."

Strong signups

The bank advised that over 86,000 customers have already pre-registered for StepPay, which it feels shows the appeal of a bank offered BNPL solution.

But this could soon grow. The bank notes that research indicates that 76% of Australians who currently use BNPL are interested in using a BNPL service offered by their main bank. This could bode well for the bank and also the CBA share price if the service takes off.

"StepPay is a win particularly for smaller businesses who may be charged a high fee in order to offer BNPL to customers. With no additional merchant costs or integration costs, StepPay levels the playing field and allows businesses to better compete."

"Creating a responsible BNPL is at the forefront of StepPay's design. And while we expect it will have great appeal among customers, it will only be available to eligible customers so we can offer the most responsible option we can," Mr Meneguzzi concluded.

The CBA share price is now up almost 20% since the start of the year.

Should you invest $1,000 in Commonwealth Bank Of Australia right now?

Before you buy Commonwealth Bank Of Australia shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Commonwealth Bank Of Australia 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 may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

A shocked man holding some documents in the living room.
Broker Notes

Macquarie's take on Judo Capital shares after suddenly falling 19% yesterday?

Judo Bank was the ASX's top-performing banking stock in 2024.

Read more »