Over the coming months, Westpac will allow customers to link their credit card to a digital PartPay card, which will split their purchases into an initial payment, followed by three fortnightly instalments.

Westpac banking executive Chris de Bruin said the instalments program will give credit card customers more control.

“We want to give our customers greater flexibility by providing different payment options to suit their changing circumstances. We know our customers want more choice when it comes to their finances and this new feature will put them in the driver’s seat," Mr de Bruin said.

“The payment landscape has changed and customers have told us they like the option of making payments in instalments."

The product launch is expected to go live in the coming months, and comes a week after the collapse of OpenPay.

How Westpac's PartPay BNPL program works

PartPay instalment options are available to Low Rate, Lite, Low Fee, Altitude Rewards Platinum, and Altitude Rewards Black credit card customers.

The purchase must be on the digital PartPay card and be valued at $100 or more.

The account is linked to a bank account and fortnightly payments will be automatically deducted. 

Customers then receive a reminder three days before the auto payment due date.

There are no late payment fees and zero interest, however if a customer misses a payment, the instalment is transferred to the main credit card purchase balance, which accrues interest.

Westpac's credit cards attract interest rates anywhere from 9.90% p.a. to 19.99% p.a.

PartPay customers can still accrue rewards and points, and access complimentary insurance associated with their Westpac credit card.

The digital card can be added to smartphone wallets via the Westpac app.

Westpac's flirtation with BNPL

Payments expert Grant Halverson was derisive of Westpac's new product.

"PartPay looks more like 'part product' – very clunky and not at all seamless," the former Citi and Diners Club executive told Savings.com.au.

"In 2023 Westpac finally joins all the major banks with Pay-in-4 products. Established fully-regulated players include ANZ Visa BNPL; CBA with StepPay; unsecured lender Humm; Latitude with ‘LatitudePay’; NAB and Citi's Spot; PayPal with ‘Pay in 4’; and Suncorp’s Visa BNPL."

Westpac had previously dabbled in the BNPL world without actually introducing its own product:

Mr Halverson also said the expected launch of Apple's instalments platform in Australia is likely to send shockwaves in the sector.

Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Rates
Features
Conditions
Other
Provider
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
More details
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
*Rate varies on savings amount
  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
*Rate varies on savings amount

Save Account (<$100,000)

  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
More details
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

Savings Account (Amounts < $250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
More details
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • For deposit amounts $0 - $49,999
  • New ING personal savings customers receive an introductory bonus 0.50% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
  • Reverts to variable ongoing rate. T&Cs apply.

Savings Accelerator (Amounts < $50000)

  • For deposit amounts $0 - $49,999
  • New ING personal savings customers receive an introductory bonus 0.50% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
  • Reverts to variable ongoing rate. T&Cs apply.
More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of August 21, 2024. View disclaimer.

Important Information and Comparison Rate Warning