Banks can leverage their existing capabilities to grow credit card utilization and their consumer finance business overall. Banks will benefit beyond the immediate potential boost in card income. When integrated with a credit card, BNPL becomes a flexible product that can be offered at different moments in the customer journey. It can be tailored to different customer segments to optimize credit limit usage, customer acquisition and customer loyalty.
As part of a credit card proposition, BNPL can be linked to a bank’s loyalty program to attract mass-market and affluent customers. Banks could consider launching bundled offers tailored to a time of resurgent inflation and interest—for example, short-term interest-earning deposit accounts bundled with new BNPL offers.
