Commonwealth Bank of Australia (CBA) has launched a cash incentive for merchant customers who offer the new StepPay just in time for the holiday season.
StepPay is the CBA’s buy now, pay later (BNPL) product to support local businesses as they navigate through the post-COVID-19 economic recovery.
Many BNPL schemes charge business around 4% per transaction, with some going as high as 7%, but StepPay promises no transaction fees. This is to encourage smaller businesses to hop on the rising BNPL trend and allow them to put extra money back into the enterprise.
“Some businesses, particularly small businesses, have been hesitant to offer BNPL because of the traditionally high fees,” said Mike Vacy Lyle, group executive for business banking at CBA. “With no additional merchant costs or integration costs, StepPay is a win for small businesses and levels the playing field to allow them to better compete.”
StepPay is also providing eligible businesses a 4% bonus on transactions over the Christmas period.
“To give businesses a boost, we’re giving customers a bonus payment of 4% per transaction when they process a StepPay transaction,” Lyle said. “This means every time a customer uses StepPay, the business will be credited 4% of the transaction.”
There is no set-up required for a business to accept StepPay, as it can be used anywhere Mastercard is accepted.
