American Express, the bank holding company and multinational financial service provider, has launched ‘Plan It’, a new BNPL-esque offering for the UK market enabling its credit cardmembers to pay off purchases on their statement, or a portion of their monthly bill, in instalments.
Cardmembers with an American Express credit card will be able to use Plan It to select a transaction, or an amount from their most recent statement, to put into an instalment plan for three, six or 12 months.
Users will be charged a fixed monthly fee for their instalment plan, which will be displayed up front when they set it up, but no interest will be charged on the balance in an instalment plan. Cardmembers will still earn rewards, while using the offering, on any purchase in their plan, as usual.
Cardholders can set up the instalment plans via the American Express app, or in their online account. Once set up, the instalment plan is automatically included in the ‘minimum due’ payment each month.
Ricky Bonham, vice president of American Express, explained how the new offering could support its cardmembers across the UK: “We know our cardmembers value flexibility including in how they pay. With Plan It, our credit card customers can now pay at their own pace, continuing to earn rewards as they do so on everything from a new vacuum cleaner to their next big holiday.
“As a business regulated by the FCA, we’re also delighted to be launching an instalment plan that offers transparent fees and no hidden charges.”
Not all cardholders will be eligible for Plan It. They may not be eligible to create an instalment plan if they have recently withdrawn cash using their American Express credit card; if they are enrolled in a financial support programme with American Express; if they don’t have an eligible purchase or balance amount (that are the minimum £100); or if they hold a product not eligible for Plan It, such as an AMEX Charge card.
