Commonwealth Bank of Australia has today unveiled its new Buy Now, Pay Later (BNPL) offering which can be used anywhere debit and credit card payments are accepted[1]. It will begin rolling out to eligible CBA customers from mid-2021.

Available to eligible CBA customers, the new BNPL links to a CBA bank account, with no ongoing fees[2] and at no additional cost to businesses[3].

“Customer needs are evolving and this new BNPL offering is about giving customers more choice around how they choose to pay and when, depending on the option which suits them best,” said CBA’s Group Executive, Retail Banking Services, Angus Sullivan.

“When making a payment, customers will have additional flexibility to use it for their everyday spending for smaller purchases as well as split over four instalments to help smooth payments for bigger purchases.

“Additionally we know transaction costs are important considerations for businesses.  Unlike some other BNPL providers which may charge a high fee, there are no additional fees to businesses[4] when customers choose to pay with CommBank’s BNPL,” Mr Sullivan said.

With industry average BNPL costs to businesses at around 4 per cent per transaction, BNPL fees are costing Australian businesses hundreds of millions of dollars a year.

When customers shop with CommBank’s BNPL, businesses will pay no additional fee above standard merchant service fees.

CommBank’s BNPL will apply robust criteria to approve customers based on specific eligibility and credit assessments.

“As the leading digital bank in Australia, we believe we are best placed to offer our customers a prudent and responsible BNPL option based on the trends and insights sourced from real time transaction data over many years,” Mr Sullivan added.



Eligible customers will be able to apply for the product where they show evidence of a regular salary deposited into a CBA transaction account which can cover repayment instalments. CommBank’s BNPL will only be available to customers following internal and external credit assessments.

The development of CommBank’s new BNPL offering follows recent research[5] showing 76 per cent of Australians who currently use BNPL are interested in using a BNPL service offered by their main bank.

The research showed BNPL users feel a bank-provided BNPL service would be more secure and reliable.

CommBank’s BNPL offering is in line with shifting customer preferences and expectations around how they like to access short term credit in ways that are simple, low cost and have no surprises.

“We are excited to announce the first BNPL offered by a major bank which will give customers access to cash flow in a way that meets their changing preferences and expectations,” Mr Sullivan said.

CommBank’s new BNPL features include:

  • Can be used anywhere Mastercard is accepted
  • A limit of $1,000
  • Use for everyday spend for transactions less than $100
  • Four easy, fortnightly instalments for transactions higher than $100
  • A new card issued to customers’ digital wallet on their mobile, so no need for a physical card
  • No ongoing fees[6]
  • No foreign exchange fees
  • Late fees of $10 per missed instalment repayment. And caps are in place to minimise the amount of additional fees charged
  • No additional merchant fees above standard merchant service fees
  • Does not provide access to cash advances or gambling
  • Available to eligible customers from mid-2021

CommBank’s new BNPL offering follows the development of CommBank Neo to help give customers more control and certainty around their spending. 

This new offering reinforces the bank’s commitment to reimagining its products for its customers. It will be available alongside the existing Klarna BNPL which offers customers an integrated shopping experience giving them access to offers and notifications.

“Our new BNPL service complements and underscores our investment in Klarna and our joint venture business here in Australia which offers both CBA and non-CBA customers huge opportunities to connect with domestic and international retailers. Klarna Australia has experienced strong growth since its launch just over a year ago and we are delighted with its success to date. Our latest investment in the company is an expression of our confidence in its future both worldwide and in Australia and New Zealand,” Mr Sullivan said.

For information on CommBank’s new BNPL service visit: commbank.com.au/bnpl

[1] Available where Mastercard is accepted

[2]Fees and charges may apply to a customer’s linked CBA account

[3]Standard merchant fees apply

[4]Standard merchant fees apply

[5]Research undertaken by RFi Group in December 2020. The sample consisted of 1,000 respondents who have used a Buy Now Pay Later (BNPL) service. Respondents are nationally representative of Australian BNPL users by state, age and gender.

[6]Fees and charges may apply to a customer’s linked CBA account