Amex dives into buy-now pay-later market in challenge to Klarna
American Express has launched a new offering for UK customers to pay off large credit card purchases in monthly instalments as it looks to capture further market share from the likes of Klarna.
The “Plan It” product will allow Amex’s British cardholders to pay off transactions across three, six or 12 months for a fixed monthly fee.
Customers will not be charged any interest on balances in their instalment plans and can keep earning rewards on the purchases.
Amex jumped on the buy-now-pay-later (BNPL) bandwagon in 2017 when it launched Plan It in the US, competing with giant Klarna.
The sharp rise in BNPL has stoked fears in the UK over mounting personal debt and the transparency of providers in the unregulated industry.
The government last year considered bringing BNPL products under the remit of the Financial Conduct Authority (FCA), but had put them on the back burner over fears firms would quit the UK in favour of more light-touch jurisdictions.
Ricky Bonham, vice president of lending at Amex, said: “We know our Cardmembers value flexibility including in how they pay. With Plan It, our credit card customers can now pay at their own pace, continuing to earn rewards as they do so on everything from a new vacuum cleaner to their next big holiday.
“As a business regulated by the FCA, we’re also delighted to be launching an instalment plan that offers transparent fees and no hidden charges.”