The bank’s Custom Pay Plan is one of three new offerings, along with a new loyalty program and credit monitoring services, according to a Wednesday (June 10) press release.
“With these tools, we’re rewarding our clients in more ways, giving them greater visibility into their financial health and more control over how they manage their money,” Holly O’Neill, president, consumer, retail and preferred at Bank of America, said in the release. “Whether someone is just starting their financial journey with us or has been a client for years, we’re committed to rewarding and empowering them each and every day.”
With the Custom Pay Plan, clients who make a purchase with an eligible Bank of America credit card can convert that transaction into a structured payment plan through the bank’s mobile app or online banking platform. From there, they can choose a repayment period, typically from three months to 18 months, the release said.
The launch of the program comes as consumers in the United States continue to embrace buy now, pay later (BNPL) plans. PYMNTS Intelligence found that the availability of these plans and merchant financing impact where consumers spend.
Financing seems to have the most influence in categories “where consumers have meaningful alternatives and time to compare them,” PYMNTS reported May 27.
Categories like travel, food delivery and experiences showed high sensitivity to financing availability, while grocery and restaurant purchases were less affected, a sign that habit and immediacy still dominate regular spending decisions.
Financing availability becomes influential when shoppers view merchants as interchangeable. In these moments, installments can become part of the value proposition, fostering stickiness, rather than simply a checkout feature.
Meanwhile, Bank of America customers with a Customized Cash Rewards, Unlimited Cash Rewards or Travel Rewards credit card have access to its new Refer-a-Friend, which provides cash or points-based rewards to clients who convince friends or family to sign up for a card, the release said.
The bank also introduced My Credit, a tool aimed at letting customers stay on top of their credit profile without affecting their score. Clients can view their FICO score, get alerts about changes to that score, and use the bank’s Erica AI assistant to pull up their credit profile as needed, according to the release.
