American Express has set foot in the “Buy Now, Pay Later” segment with ‘Plan It’.
Plan It allows customers to transfer a portion of their credit card balance into a three, six, nine or 12 month payment plan with a fixed monthly fee and no interest.
Customers can use their existing credit line to create their own installment plans in their online account or via the American Express App with terms and fees shown in advance.
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This new feature comes after research by American Express found that nearly a third (31%) of Australians believe it will take 12 months or more to get their finances, careers, and lifestyles back to pre-COVID-19 levels bring.
In addition, 37% of people had a. consumed Buy now, pay later (BNPL) or Installment Plan to manage their finances more effectively over the past six months.
The study found that over three quarters (77%) plan their finances in advance, but over a quarter (28%) do not plan unexpected expenses.
Due to the pandemic, more than half (52%) of respondents had considered taking out personal microloans, while a third (31%) had considered using lay-buy or in-store installment plans.
Vice President Consumer Lending at American Express Austin Huntsdale said Plan It was created to help clients at a time when personal finance management was more important than ever.
“Australians take a close look at their personal finances. They plan more carefully to cope with unexpected expenses, “said Huntsdale.
“Life is a little different now and customers want more control over their finances.
“Plan It is one of the ways we can help our card members gain that control.”
Plan It is a built-in feature of American Express credit cards, and plans are created against customer balance and not with certain retailers such as some BNPL providers.
Cardholders can spend within their existing credit limit and plan for balances of $ 150 or more.
To celebrate the launch, American Express is offering a lower monthly plan fee for Plan IT, which will be reduced by more than 25% through September 30, 2020.
The monthly plan fees are calculated based on the total cost of the plan.
American Express too started the “Shop Small” campaign in JuneRefunding credit to cardholders supporting small businesses during COVID-19 up to $ 50.