Is the ANZ BNPL capitulation a canary in the coal mine for credit cards?
Recent news of ANZ Bank finally capitulating and announcing their own version of Buy-Now-Pay-Later could be considered the canary in the coal mine for credit cards.
At a time when Australians managed to wipe $1.1 Billion off their credit card debt in a single month, it could be argued this archaic form of providing credit could be on it’s way out.
ANZ are the last of the ‘Big 4’ to the BNPL party. CBA has ‘StepPay’ as well as their investment in Klarna, Westpac has a partnership with Afterpay, NAB has a BNPL offering ‘Spot’.
This could be considered the biggest endorsement of the model, as the incumbent credit providers pivot to BNPL in search of a competitive edge.
ANZ have been the staunchest critics of BNPL and have been selling some of the most expensive credit cards. Including one such card which includes a 20.24% interest rate and an annual fee of $375.
It also wasn’t too long ago that ANZ attacked BNPL, saying it ‘doesn’t really fit into improving the financial wellbeing of our customers’. It’s now clear ANZ don’t want to be caught without their swimmers when the credit card tide goes out, and perhaps BNPL does fit for their customers?