NatWest is to enter the UK's crowded buy now, pay later space this summer, promising to put safeguards in place to ensure responsible lending.
NatWest says its new proposition will give its customers the convenience to make a purchase almost anywhere that accepts Mastercard. Gambling, cash advances and balance transfers will be excluded from the roll out, which will initially be made available to the bank's customers in England, before heading north to Scotland and across the Irish sea to Northern ireland..
The product will offer a pre-determined fixed credit limit and customers will be able to keep track of payments and installment plans via the bank's mobile app.
With the FCA preparing new rules to reign in the booming BNPL industry amid fears of rampant debt build-up, NatWest says it will use credit scoring and affordability checks to determine each customer's credit limit.
David Lindberg, CEO retail banking NatWest, says: “There’s a clear demand for buy now, pay later and we are determined to make it better and safer. Customers told us they value fraud protection on purchases and useful tools and reminders to help them budget. They also like the convenience of managing buy now, pay later purchases alongside their other NatWest accounts in our award-winning app.”