The Afterpay Ltd (ASX: APT) share price is in the green today despite news another ASX-listed bank is launching its own buy now, pay later service.
Afterpay is facing yet another competitor after Suncorp Group Ltd (ASX: SUN) announced it is breaking into the BNPL sphere.
Right now, the Afterpay share price is $131.97, 0.96% higher than its previous close.
Let's take a look at the news of Afterpay's latest rival.
Afterpay share price up despite new competition
The Afterpay share price is performing well today despite the news Suncorp will be launching a BNPL service.
Suncorp announced its interest-free BNPL offering, PayLater, today.
PayLater will be accepted anywhere shoppers can use Visa, giving consumers the option to use the BNPL service on purchases from more than 70 million merchants.
PayLater will follow Afterpay's tried and tested formula of splitting a purchase into 4 instalments.
Additionally, Suncorp will be providing PayLater users with a yellow Suncorp bank card. By using the yellow card they can access the BNPL service in store and online.
Perhaps protecting the Afterpay share price today is the fact that to use PayLater one must be a customer of Suncorp Bank.
Further, unlike Afterpay, PayLater requires customers to pass a credit check.
Suncorp Group CEO Clive van Horen commented that PayLater removes the need to download separate apps. He also seemingly noted it will charge merchants less – or no – fees.
PayLater will charge users a $10 fee if they miss a payment by more than 2 days. The service is capped at $1,000 worth of purchases and has a $50 minimum spend.
For comparison, Afterpay charges users a $10 fee for missed payments and a $7 fee if the missed payment isn't made after 7 days. However, it has no minimum spend. Additionally, the amount a user can purchase through Afterpay increases if they use the BNPL service often and responsibly.
All eyes might be on the Afterpay share price when Suncorp launches PayLater in November.
