NatWest Phases Out BNPL, Shifts Focus to Core Lending

NatWest has declared its intention to discontinue its Buy Now, Pay Later (BNPL) offering, reports PaySpace Magazine. The financial institution arrived at this decision due to the limited interest generated by the specified product among customers. The consumer demand for this service fell below the bank's initial expectations. It's noteworthy that the implementation of this decision will take place gradually, with the bank ceasing to provide the BNPL service as of May 7th of the current year.

NatWest, a major player in the UK banking sector, had introduced the product in the summer of 2022, but this week, they decided to bring it to an end. A spokesperson for the financial institution, speaking with the media, mentioned that post the cessation of the BNPL service, NatWest will concentrate on its core lending products, such as loans, overdrafts, and credit cards. Customers with active BNPL plans were duly informed by the bank about the discontinuation of this product. Consumer accounts associated with these services will be closed upon the completion of their repayment periods.

NatWest customers possessing credit cards will have the option to utilize installment plans offered by the bank, which have proven to be more popular among consumers than BNPL.

Currently, there are multiple service providers in the UK offering BNPL that NatWest has opted to exit. In February, American Express introduced its Plan It BNPL in the UK, while Monzo and Klarna also provide similar services. Additionally, various specialized BNPL providers operate in the UK financial services market.