The National Australia Bank Ltd (ASX: NAB) share price is gaining this morning as the bank reveals a buy now, pay later (BNPL) offering of its own.
NAB Now Pay Later will go up against Commonwealth Bank of Australia (ASX: CBA)'s StepPay, as well as 'traditional' BNPL companies such as Zip Co Ltd (ASX: ZIP) and Afterpay (now owned by Block Inc (ASX: SQ2)).
At the time of writing, the NAB share price is $31.86, 0.63% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.04%.
Let's take a closer look at the ASX's latest BNPL product.
Image source: Getty Images
NAB launches BNPL product
The NAB share price is in the green as the bank reaches what arguably appears to be a rite of passage for ASX 200 banks – jumping aboard the BNPL train.
NAB Now Pay Later will allow NAB customers to buy up to $1,000 worth of goods and pay in four fortnightly installments. It can be used anywhere that Visa Inc (NYSE: V) is accepted.
Interestingly, NAB's offering differs from most other BNPL products by ditching all fees. It charges no late fees, no interest, no account fees, and has no minimum spend.
The product can be accessed through the NAB app. The bank's executive of personal banking Rachel Slade noted customers can be approved to use NAB Now Pay Later while moving "from the fitting room to the register".
"We're able to do this quickly because of the combination of technology and knowing our customers," Slade continued.
"We know their banking and credit history and we're assessing them based on our existing banking relationship."
It follows the release of NAB's no interest credit card in 2020. The card has accounted for 30% of credit card applications over the past year, making it NAB's most popular credit card product.
The bank expects NAB Now Pay Later to officially launch in July. Customers can pre-register for the product now.
NAB share price snapshot
The NAB share price is outperforming the ASX 200 by 13% in 2022.
The bank's stock has gained around 8% since the start of the year. It's also nearly 19% higher than it was this time last year.
