NAB’s offering is different to Afterpay in several ways. It allows customers to repay balances over a longer period of time. It does not charge late fees and it does not charge any merchant fees to the retailer. It will only be offered after “responsible lending” checks are conducted, in the same way that NAB does for credit cards. It can be used anywhere Visa is accepted.
For a $1000 credit limit, customers will be required to pay $35 a month towards the balance, including a $10 monthly fee. For a $2000 limit, the monthly minimum repayment will be $75, including a $15 monthly fee;. At a $3000 limit, the repayment is $110 per month, including a $20 fee. Customers are required to pay the minimum payment or the card may be blocked. There are rewards attached to transactions.
Credit ‘training wheels’
Sally Tindall, director of research at RateCity, said