CBA launches its own AfterPay, Zip payment option

Klarna launches in Australia with CBA

Commonwealth Bank has officially launched a digital payments service in direct competition with AfterPay and Zip, as the Australian Financial Industry Association (AFIA) announced a new Code of Practice for buy now pay later (BNPL) providers.

Commonwealth Bank launched Klarna Australia this week. Klarna, which currently operates in Europe, offers direct payments, pay after delivery options and instalment plans. 

CBA has invested about $US300 million in Klarna, which will be available via its online banking app so customers can begin shopping at any online store. Purchased items will show up in the CommBank app and customers will also be able to take advantage of price drop and out of stock notifications directly from Klarna. Klarna will also be available to non-CBA consumers.

CBA has a shareholding investment in Klarna Group of 5.5 per cent. CBA and Klarna will jointly fund and have 50:50 ownership rights to Klarna’s Australian and New Zealand business. CBA also retains a right to partner with Klarna in Indonesia.  

CBA chief executive officer, Matt Comyn, said its partnership with Klarna will further enhance the customer experience in its banking app and address the rapidly growing demand among consumers for new payment options. 

“In particular, it allows us to build on our leading technology to deliver the very best payment services for our customers and merchants in Australia, on platforms which are safe, secure, and easy to use,” he said. “By partnering with Klarna, we are bringing together our market leading digital technology, merchant relationships and strong customer network with Klarna’s innovative payments technology and integrated shopping experience for the benefit of CBA customers and many more Australian consumers.”

According to AFIA, ‘modern day lay-by’ is used by 30 per cent of Australian adults. By launching a new Code of practice, AFIA and its BNPL members, which include Afterpay, Brighte, flexigroup, Latitude, OpenPay, Payright and Zip Co, are responding to ASIC’s Report 600 and the Senate Economics Reference Committee, which recommended such an initiative. 

“The BNPL Code of Practice strengthens consumer protections for BNPL customers, while preserving customer choice to make purchases and payments in a way that suits their need,” AFIA CEO, Diane Tate, said. “Some customers want to use a credit card, some a debit card, and some a BNPL service – ease of purchases and payments and customer choice are really important, but innovation has to be matched with good consumer protections. 

“The BNPL Code goes above and beyond the law by ensuring customers have strong safeguards in place that help them better understand the product and their rights. It also sets standards around helping those customers that experience financial difficulties."

Importantly, the BNPL Code also means customers of BNPL services have access to the Australian Financial Complaints Authority (AFCA), the independent external dispute resolution scheme. AFIA started public consultation in mid-January on its Code of Practice for BNPL providers and hopes to implement it in mid-2020. 

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.  

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

Nice blog!Blog is really informative , valuable.keep updating us with such amazing blogs.influencer agency in Melbourne

Rajat Kumar

Why flipping Status Quo Bias is the key to B2B marketing success

Read more

good this information are very helpful for millions of peoples customer loyalty Consultant is an important part of every business.

Tom Devid

Report: 4 ways to generate customer loyalty

Read more

Great post, thanks for sharing such a informative content.

CodeWare Limited

APAC software company brings on first VP of growth

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

What about this one FormDesigner.pro? I think it's a great platform providing a lot of options, you can collect different data and work w...

Salvador Lopez

Gartner highlights four content marketing platform players as leaders

Read more

Blog Posts

​Why we need to look at the whole brand puzzle, not just play with the pieces

Creating meaningful brands should be a holistic and considered process. However, all too frequently it’s one that is disparate and reactive, where one objective is prioritized at the expense of all others. So, what are the key pieces to the ‘good’ brand puzzle?

Marketing overseas? 4 ways to make your message stick

Companies encounter a variety of challenges when it comes to marketing overseas. Marketing departments often don’t know much about the business and cultural context of the international audiences they are trying to reach. Sometimes they are also unsure about what kind of marketing they should be doing.

Cynthia Dearin

Author, business strategist, advisor

From unconscious to reflective: What level of data user are you?

Using data is a hot topic right now. Leaders are realising data can no longer just be the responsibility of dedicated analysts or staff with ‘data’ in their title or role description.

Dr Selena Fisk

Data expert, author

Sign in