The National Australia Bank is debuting its NAB ‘StraightUp’ card that provides access to staged credit limits up to a maximum of $3000 for a flat monthly fee of between $10 to $20.
Customers don’t pay the monthly fee if the card is not used and there are no other fees or charges, according to a Finextra report.
“Credit cards have not really evolved in recent years. But our customers’ needs and expectations are changing and we want to change with them,” Rachel Slade, group executive, personal banking, NAB, told the news outlet. “The NAB StraightUp card represents a completely new approach to credit.”
Unlike ‘buy now, pay later’ services, NAB StraightUp card can be used anywhere Visa is accepted. The card has no late payment fees and no interest fees and allows customers to repay balances over a longer period of time. The card does, however, impose higher minimum repayments than standard credit cards and does not allow cash advances or gambling transactions, according to the report.
Customers who do not make the minimum payment will find their cards blocked by the bank. Customers can set up payment reminders using internet banking and will also receive SMS reminders three days out from their due date.
NAB’s rival CBA has plans to launch an equivalent card, CommBank Neo, in late 2020, and a no-interest card for business customers in early 2021. Like the NAB card, CommBank Neo will come with pre-set credit limits and a slightly elevated monthly fee of between $12 to $22.