NAB takes the fight to Afterpay with no interest credit card

National Australia Bank (ASX: NAB) is hoping to reel in younger customers with its new no interest credit card, called the ‘StraightUp’ card, taking a punt at the booming buy-now pay-later (BNPL) sector.

The move is potentially a game-changer for NAB and sees the Big Four Bank take on Afterpay’s (ASX: APT) BNPL product used by nearly 10 million people in Australia, the US and the UK.

In the red corner is NAB’s ‘StraightUp’ Card. Technically a credit card, the product gives customers access to credit of up to $3,000 for a flat monthly charge and no interest payments.

Customers do not have to pay the monthly fee if the card is not used and if the balance of the card is $0, and there are no annual fees, no late payment fees, and no foreign currency fees.

In the blue corner is Afterpay with its now well-established fintech platform that allows customers to pay-off the costs of goods and services every fortnight for two months.

The platform charges uses a fee if payments are missed, but otherwise no interest payments are charged.

A similar model is used by BNPL competitors like Zip (ASX: Z1P) and Flexigroup’s (ASX: FXL) Humm.

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Source: NAB takes the fight to Afterpay with no interest credit card