Commonwealth Bank Launches Afterpay Competitor

Commonwealth Bank of Australia has today unveiled a new buy now, pay later (BNPL) offering which can be used anywhere debit and credit card payments are accepted.

Available to eligible CBA customers from mid-2021, the new service will directly link to CBA bank accounts with no ongoing fees and at no additional cost (above standard merchant fees) to businesses.

“Customer needs are evolving and this new BNPL offering is about giving customers more choice around how they choose to pay and when, depending on the option which suits them best,” said Angus Sullivan CBA’s group executive, retail banking services.

“As the leading digital bank in Australia, we believe we are best placed to offer our customers a prudent and responsible BNPL option based on the trends and insights sourced from real time transaction data over many years,” Mr Sullivan added.

The launch of CBA’s new BNPL product follows recent research by the RFi Group which showed 76 per cent of Australians who currently use a BNPL product would use a similar bank-offered service.

Late payment fees will be charged at $10 per instalment with caps in place to minimise the total amount of additional fees charged.

“We are excited to announce the first BNPL offered by a major bank which will give customers access to cash flow in a way that meets their changing preferences and expectations,” Mr Sullivan said.

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.

Commonwealth Bank Launches Afterpay Competitor

CBA’s new buy now, pay later product is anywhere debit and credit cards are accepted.