Danish-based challenger bank Lunar has launched a 'Pay Later' credit, making it possible to split all transactions in installments retroactively or postpone an expense up to 30 days in the Lunar app.
The new feature will be available for all users with a minimum deposit of €270 to their current account every month. Up to 30 days post transaction the user can go back in time and choose a payment plan to defer or split a payment in four, up to a maximum of €1,400 a month.
Ken Villum Klausen, founder and CEO of Lunar says: "The product is built for the customer, not the merchants. You don’t need different providers and we do not prompt the customers to spend more when they buy. We let everyone manage their finances conveniently regardless of what kind of buy, bill or transaction they want to split or defer."
The new alternative to consumer credit comes after Lunar’s launch of its first consumer lending products on its own balance sheet.
Says Klausen: "We have a very clear picture of our customers’ transaction history and that is why we have built a post-purchase credit option that is not limited to shopping, but can be used in all aspects of your financial life."
Lunar’s Pay Later product is built into the app and lets users split or postpone after going through a soft credit check. If a user wants to postpone a purchase or bill of €270 up to 60 days the fee will be €5. Alternatively, customers can split a transaction of €800 into four for €66.