CBA enters the BNPL market in Australia

The Australian bank will offer a 4% rebate on the value of purchases to merchants using its StepPay platform until the end of 2021. CBA clients will receive AUD 20 on an AUD 500 transaction and up to AUD 5,000 in cashback, stimulating merchants to offer discounts to end customers whenever using the service.

CBA’s attempt to enter a new merchant acquiring market could lead to an increase in the number of clients opting for a merchant terminal and transaction account issued by this bank, bankingday.com explains.

The bank aims to become a direct competitor to other similar BNPL service providers such as Afterpay, Zip, and Citibank’s own BNPL, Spot, not only by eliminating transaction fees, but also by providing 4% cashback to purchases up to AUD 5,000.
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