American Express Introduces ‘Plan It’, Offering BNPL Twist to Credit Card Bills

American Express has rolled out a new offering called ‘Plan It’ for the UK market, allowing credit card holders to pay off purchases on their statement or a portion of their monthly bill in instalments. This initiative aims to provide customers with greater flexibility and control over their payments, without incurring interest charges on the balance in their instalment plan, as stated in Finextra News. 

Under ‘Plan It’, customers can choose any transaction above £100 or an amount from their most recent statement to put into an instalment plan for 3, 6, or 12 months. A fixed monthly fee will be charged for this service, but customers can continue to earn rewards on their purchases as they pay at their own pace.

Ricky Bonham, vice president at American Express, highlighted the benefits of ‘Plan It’, stating, «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.»

The ‘Plan It’ feature can be set up easily from the American Express App or via the user’s online account. Once activated, charges against the plan are automatically included in the ‘minimum due’ payment each month.

This move by American Express reflects a growing trend in the financial industry towards offering Buy Now, Pay Later (BNPL) options, providing consumers with more convenient and flexible payment alternatives.