Chase stops customers using credit cards to make BNPL instalment payments. More and more banks prefer to promote their own BNPL solution.

Chase customers will soon be banned from using their credit cards to pay for third-part BNPL instalment plans, according to Finextra. The US bank informed credit cardholders on their latest statements:

„Effective October 10, 2024, you will not be able to use Chase credit cards to pay for third-party Buy Now Pay Later (“BNPL”) instalment plans. Payments to these instalment plans (e.g., Klarna, AfterPay, etc.) using your Chase credit card will be declined.

„If your Chase credit card is used for any of these recurring BNPL plans, please update the payment method with your BNPL provider to avoid any missed payments or late fees (if applicable).”

This change comes at a time when Chase offers its own BNPL option — Chase Pay Over Time — and was likely made to boost customers’ interest in its own offering, Newsweek reported Tuesday (July 16).

Experts expect that other companies will follow Chase’s example, the Newsweek report said, adding that Chase is unlikely to encounter resistance from customers because it offers its own BNPL option and gave customers three months’ notice of the pending change in policy.

“Chase is doing something that other banks are slowly and methodically implementing: pushing customers to their own financial products,” Alex Beene, financial literacy instructor at the University of Tennessee at Martin, said in the report, according to pymnts.com.