American Express Plan It™ vs other BNPL services

When it comes to Buy Now Pay Later (also known as BNPL), consumers have access to a growing range of services in Australia. This includes platforms such as Afterpay, Klarna and Zip. With an increasingly crowded market, it can be hard to cut through the noise.

Disclaimer: This post has been prepared in partnership with American Express

Plan It™ Instalments by American Express blends features from both the Credit Card and BNPL worlds, setting it apart from the pack. So how does it stack up against the competition?

Here are the key advantages American Express Plan It™ offers over traditional BNPL services:

Shop anywhere on the American Express network

Whether it’s your local butcher or Amazon, Plan It™ can be accessed at any merchant that accepts American Express. That’s hundreds of thousands of merchants, big and small, across Australia.

In comparison, some other BNPL plans rely on businesses paying to offer the service, so there are limitations on accessing the retailer you want or getting the best deal.

Ease of set up

Since Plan It™ is a fully integrated product feature with eligible American Express Credit Cards®, it’s a seamless process to set up. Eligible Amex Card Members can activate Plan It™ in three simple steps via the American Express app and online Account.

Choose longer instalment plans

Plan It™ is likely to hold great appeal to users looking for a longer period of time to pay off a purchase.

In fact, customers can opt to pay over a timeline of up to 12 months – far longer than most other BNPL providers. American Express says this feature enables Card Members to plan for making larger, ‘big-ticket item’, purchases.

Conversely, some other BNPL providers require customers to make payment of an outstanding balance over a shorter timeframe.

Repay with ease

Once you set up a new Plan It™ payment plan, the fixed monthly fee is added to your minimum monthly payment on your Credit Card statement, so you can track costs with ease and convenience and easily make payments as you normally would on your monthly statement.

How do American Express Plan It fees stack up?

While 0% interest is charged, Plan It™ users are levied a monthly fee that is added to their minimum monthly payment on their Credit Card statement. This is the one downside to using the service. The monthly fee works out to be equivalent to the interest that would’ve been charged had users not used Plan It ™, but instead rolled over their balances.

Conversely, other BNPL providers like Afterpay and Zip don’t levy fees if you pay your instalments off in time. All BNPL providers, including American Express, levy late payment charges if you’re unable to pay on the due date.

Plan It™: In Conclusion

While there are many BNPL services in the market, Plan It™ offers features that are not available elsewhere. This service may be suited to users who want convenience and flexibility to spread payments over a long period of time, as repayments can be made over multiple months.

Like any financial services product, you’ll need to determine if Plan It™ is right for you. If you are looking to use American Express Plan It™, the key consideration here is working out whether the monthly cost of accessing this service is worth it.

Find out more about Plan It™ in our comprehensive guide here.

This article has been prepared in partnership with American Express.

^Plan It™ Terms and Conditions $0 Monthly Fees for 3 Month Plans

  • You can create an Instalment Plan as long as your account is in good standing. American Express may limit the amount that can be transferred to an Instalment Plan.
  • Each Instalment Plan will begin from the date it is successfully created, as communicated to you in your Online Account.
  • Payment of your first Monthly Instalment will be due in your next payment cycle.
  • You will be charged a Monthly Plan Fee for each Instalment Plan created.
  • $0 Monthly Plan Fees are only available on 3 Month Plan terms created by 28 Feb 2022. Offer is not available on 6, 9 or 12 month plans, you will be charged Monthly Plan Fees for plans created with terms greater than 3 Months.
  • This fee will be charged each month your Instalment Plan is active and will be notified to you before you create the Instalment Plan. View the full Plan It™ Instalment Terms and Conditions here

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