The option allows cardholders can pay over time with a fixed fee, no interest and the ability to earn cash back rewards, according to an announcement emailed to PYMNTS Tuesday (Oct. 3).
In addition, in an exclusive benefit available to Costco Anywhere Visa cardmembers, they can pay no fees or interest when selecting a three-month Citi Flex Pay payment plan on eligible purchases made in-warehouse or on Costco.com, the announcement said. The benefit will also be made available to Costco Anywhere Visa Business cardmembers in the coming months.
With Citi Flex Pay, cardmembers who make a qualifying purchase of $75 or more at any merchant with their eligible Citi credit card can log in to their Citi account, select a monthly payment plan of three to 24 months and then pay over time, per the announcement. No application or credit check is required.
The BNPL offering provides users with the ability to get predictable payments, shop anywhere, select a monthly payment plan that works for them and earn cash back rewards on purchases, according to a web page dedicated to the new Citi Flex Pay With Costco offering. It’s an existing card benefit, so it can be used at any time.
PYMNTS Intelligence found that consumers tend to use store cards and BNPL options for different reasons, with 64% saying store cards allow them to earn more rewards and 78% saying BNPL options enable them to make larger purchases.
Nearly twice as many consumers said they would pay for an item priced at more than $1,000 with BNPL as would pay with a store card, according to “The Truth About BNPL and Store Cards,” a PYMNTS and PayPal collaboration.
The report added that although store cards are almost always the preferred payment method for store card holders, who use them to make 87% of all store card-eligible purchases, BNPL can still help retailers drive sales for high-priced items.
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