The news: U.S. Bank announced that it’s enhancing its buy now, pay later (BNPL) product, ExtendPay, which it launched in 2021.
- Steve Mattics, who leads U.S. Bank’s Retail Payment Services, called the customer response “tremendous” and pointed to the holiday season.
- Mattics noted changes that include making BNPL available to business customers, a streamlined sign-up process, and letting customers create unlimited plans.
What ExtendPay offers: The product is available to U.S. Bank credit card customers.
- Cardholders can transfer eligible credit card purchases to ExtendPay plans.
- They can pay in equal installments, spaced out from three months to two years. Different plans offer different payment periods.
- Customers won’t have to pay interest, but they’ll owe fixed fees each month.
The big takeaway: U.S. Bank’s BNPL updates suggest that it has even more room to successfully capitalize on its lending product.
It may also be able to grab market share from nonbank players: A PYMNTS survey found that 70.2% of respondents who presently use BNPL replied that they would be “More interested” in using a bank-backed product than a nonbank company’s product.
