Chase has recently informed customers that they will no longer be able to use their credit cards to pay for third-party buy now, pay later (BNPL) plans, effective October 10, 2024. This decision was likely made to boost interest in Chase’s own BNPL offering, known as Chase Pay Over Time. Customers who currently have recurring BNPL plans set up with their Chase credit cards are advised to update their payment methods to avoid any missed payments or late fees.
This move by Chase reflects a growing trend among traditional banks to enter the BNPL space, with some, like Citi, already offering their own card-based payment options tied to select purchases over a certain dollar threshold. The decision by Chase to restrict the use of their credit cards for third-party BNPL plans aligns with a larger strategy of pushing customers towards using their own financial products. While some experts predict that other companies may follow suit, Chase’s three-month notice period and the availability of their own BNPL option may help mitigate any potential customer resistance.
In partnership with companies like Amazon and Marriott, Chase continues to expand its installment payment offerings and benefits for cardholders. The new “Travel Now, Pay Later” benefit for Marriott Bonvoy loyalty card members is just one example of how Chase is innovating in the BNPL space and providing added value to its customers. As the BNPL landscape evolves, traditional banks like Chase are strategically positioning themselves to compete and meet the changing needs of consumers seeking flexible payment options.
