The card can be used online or in-store anywhere Mastercard is accepted worldwide and allows users to split payments for merchandise into four interest-free installments. Citi customers can pre-register for Spot before it is publicly rolled out. Retailers can also sign up in advance for partnership opportunities.
See also: Buy Now, Pay Later: 5 Fast Facts
Citi Australia Head of Cards and Loans Choong Yu Lum said in a press release on Wednesday (Aug. 4), that jumping into the BNPL pool is a “global first for Citi.”
“We’re confident that success in the Australian market could lead to a worldwide rollout of the new payment method,” Lum added.
“How Australians use credit is evolving, and there remains an opportunity for new players to step in and listen to consumers who are sending a clear message they want innovative payment solutions to help them manage their finances,” Lum said.
Customers pre-registering for Spot will get an “early bird” chance to win a $1,000 shopping spree. Ten prizes are being awarded.
Citi customers approved for Spot will receive a BNPL credit limit up to $1,000 that can be linked to any bank account for the twice-monthly installments. The account can be managed on the Citi mobile app, per the release.
Spot payments will be divided into four installments every two week but users have the option of splitting repayment across eight disbursements for purchases in excess of $200 for a flat fee of $10.
“As consumers and retailers continue to shift their payment preferences and behaviors, providing choice in how to pay and get paid has never been more important,” said Surin Fernando, vice president of business development, digital and innovation for Mastercard in Australia.
Citi research conducted late last year showed that although 98 percent of Australians with credit cards know about BNPL, just 25 percent of respondents have ever used the service.