Chase has announced that it will no longer allow its credit cards to be used for third-party buy now, pay later (BNPL) plans starting October 10, 2024. This decision, outlined in a customer’s credit statement viewed by PYMNTS, affects popular BNPL providers like Klarna and AfterPay. Chase has advised customers to update their payment information with their BNPL provider to avoid missed payments or late fees.
The move by Chase comes as the bank offers its own BNPL option called Chase Pay Over Time. Experts predict that other financial institutions may follow Chase’s lead in prioritizing their own financial products over third-party BNPL plans. While traditional banks have been slowly entering the BNPL space, Chase’s decision is seen as a strategic move to boost interest in its proprietary offering and consolidate its customer base.
Overall, Chase’s decision to disallow its credit cards for third-party BNPL plans signals a shift in focus towards promoting its own financial products. With the increasing popularity of BNPL services, the move may not be met with resistance from customers, especially given the three months’ notice provided by Chase. As financial institutions continue to explore the BNPL space, the landscape of consumer finance and credit card offerings is likely to evolve to adapt to changing consumer preferences.
