Westpac to launch zero-interest digital card to young consumers

October 20 (Reuters) – Westpac Banking Corp (WBC.AX) announced on Wednesday that it will launch a digital credit card this year that offers zero interest and is primarily aimed at younger customers who seek the convenience of payment services fast and efficient.

Australia’s second-largest lender said customers could apply for the card, called Flex, online or through its mobile banking app, and would have access to A $ 1,000 ($ 748.50) in interest-free credit on purchases and without late payment fees.

The move comes as contactless payments have grown in popularity in recent years, especially among young, tech-savvy consumers who rely on the Internet for most of their purchases.

“Consumer research shows that young Australians are less likely to use a traditional credit card, compared to older generations,” said Chris de Bruin, managing director of Westpac Consumer and Business Banking.

Earlier in the year, Westpac teamed up with now-pay-later buyout giant Afterpay Ltd (APT.AX) for a banking app that would allow users to deposit their wages into savings accounts. Read more

($ 1 = AU $ 1.3360)

Sameer Manekar report in Bengaluru; Editing by Anil D’Silva

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