The Westpac Banking Corp (ASX: WBC) share price is pushing higher on Tuesday.
In morning trade, the banking giant's shares were up as much as 1.5% to $24.10.
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Why is the Westpac share price rising?
The Westpac share price is lifting on Tuesday largely due to solid gains across the banking sector.
In addition, the company has made an announcement that could be giving Australia's oldest bank's shares an extra boost.
According to the release, Westpac is looking to disrupt the buy now pay later (BNPL) market with a new offering that allows credit card holders to pay in four instalments.
In the coming months, Westpac credit card customers will be able to link their existing credit card to a new PartPay digital card that allows them to split their purchases into an initial instalment, with a further three fortnightly instalments to follow.
Westpac's Consumer and Business Banking chief executive, Chris de Bruin, revealed that the new feature is about giving its customers more control. He explained:
We want to give our customers greater flexibility by providing different payment options to suit their changing circumstances. We know our customers want more choice when it comes to their finances and this new feature will put them in the driver's seat.
The payment landscape has changed and customers have told us they like the option of making payments in instalments. This new feature provides that flexibility in a fast and convenient way, via a digital card that can be downloaded in the Westpac app.
PartPay complements Westpac's existing offers for customers including our partnership with ShopBack to reward customers with bonus cashback when they make purchases using their Westpac debit and credit card
Is it the same as BNPL?
The new PartPay offering is similar to what other BNPL providers such as Zip Co Ltd (ASX: ZIP) and Afterpay offer but with a few subtle differences.
Purchases must be $100 or more, no interest or fees are charged to use PartPay, and no late payment fees will be charged for missing an instalment.
However, if a customer misses a payment, the instalment will then be transferred to their Westpac credit card balance and standard interest rates will then apply.
