If you’ve started online shopping for the holiday season you’ve likely seen buy now, pay later (BNPL) offerings at the checkout. And starting today, Chase cardholders have even more options to pay over time.
That’s because Chase is launching My Chase Plan, a BNPL option available to Chase credit cardholders. The new tool allows users to select a purchase of $100 or more they’ve made within the last 90 days and choose a payment duration ranging from three to 18 months.
Cardholders will not be charged interest on the purchase but they will face a monthly fee for using the service. Chase doesn’t list a range for the fee but the bank does disclose that the fee is based on the amount of the transaction selected, the number of billing periods, and “other factors.” In the example on Chase’s website, a purchase of around $587 split into six month increments incurs a monthly fee of $2.35.
“We developed My Chase Plan to provide our cardmembers with more flexibility and control of their payment options,” said Chase Card Services General Manager of Lending and Pricing Anthony Cirri. “We are thrilled to offer My Chase Plan as a tool to help cardmembers make the most of their money and pay for their purchases over time. With the holidays fast approaching, this embedded card feature can be used to pay off gifts and everyday purchases alike.”
From a business model perspective, Chase is taking a different approach than traditional BNPL players. Most BNPL companies work through merchant partners, charging the retailer a fee for each customer that makes a purchase using the BNPL technology. This offers a large incentive to the customer, since they receive more flexible purchase terms for free. Chase is coming at the equation from the other side, targeting the customer after they’ve made the purchase and charging them instead of the merchant.
Chase’s new feature is reminiscent of U.K.-based Curve’s tool that allows users to “go back in time” and switch their purchase from card-to-card. While Curve doesn’t enable users to pay over time, it does help with users who may have paid with the wrong card or need to free up some cash on a debit card by shifting a purchase to a credit card.