Westpac offers more flexibility to its customers with PartPay

Westpac will soon offer credit card customers the option to pay for their purchases in four instalments, providing greater control and flexibility.

Westpac credit card customers will be able to link their existing credit card to a new digital PartPay
This card will allow them to split their purchases into an initial payment, with three further fortnightly payments to follow.
As a credit card feature, PartPay will only be available to customers who have already been approved for a credit card and will use the customer's existing approved card limit.
Card features:
- Purchases on the PartPay digital card must cost $100 or more.
- PartPay is linked to a customer's chosen Australian bank account, where fortnightly payments will be automatically deducted.
- Customers will receive a reminder three days before the automatic payment due date.
- No late payment fees will be charged for non-payment of an instalment.
- No interest or fees are charged for using PartPay, except for foreign transaction fees.

Reintegrating BNPL into traditional credit practices: the use of the payment facility is directly in line with the conditions of use of the credit card to which it is linked: the ceiling in force on the latter takes into account all transactions in an equivalent manner. On the other hand, any defaulted repayments are free of penalties but are immediately transferred to the classic balance, bearing interest.
The customer will also benefit from this integration: all the advantages associated with his or her credit card - reward programmes, insurance, etc. - remain fully operational with PartPay. On the other hand, contrary to the usual operation of the historic instrument, and for greater peace of mind and security, users will be asked to provide the details of a current account (held in any establishment) from which the sums due will be deducted.

According to a survey by the French Banking Federation (FBF) and the French Association of Financial Companies (ASF), the rate of consumer credit use is at its lowest level in nearly 35 years
The success of BNPL has eroded the margins of traditional players, but the decline in financing, combined with the rise in interest rates and the probable regulation of the sector, has weighed on their growth. Today, players are offering new formulas such as white-label BNPL, which allows banks to retain intermediation.
Regulation could also reshuffle the deck in favour of the more traditional credit players, which have access to the payment incident file and are already regulated.

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