Bank of America Offers Pay-Over-Time Card Installment Plans

Bank of America is entering the buy now, pay later (BNPL) space with a new feature called 'Custom Pay Plan.' This tool allows cardholders to convert large purchases into fixed monthly installments directly on their existing credit cards. For retailers, this means one of the world's largest banks is now actively encouraging its customers to use flexible payment schedules for higher-ticket items. It provides your customers with the predictability of a BNPL loan without them needing to apply for a new line of credit at your checkout counter. This move reflects a broader trend where traditional banks are moving to protect their market share from fintech startups like Affirm and Klarna. The Custom Pay Plan is integrated into Bank of America's mobile app and online banking portal. It gives shoppers the ability to manage their budget by opting into fixed payments for specific transactions after they have already made the purchase. For merchants, this could lead to higher average order values as customers feel more comfortable making large purchases knowing they can spread out the cost over several months with a trusted bank. The bank is positioning this as part of a larger loyalty and credit monitoring overhaul, aiming to make their credit cards the primary tool for consumer financing.

Source: PYMNTS — BNPL

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