Commonwealth Bank of Australia customers will soon be able to access the bank’s first no-interest payment card as it rolls out later in 2020, and a version for business clients is also in the works, the bank said Thursday.
Called CommBank Neo, the card will provide bank customers with up to AUD 3,000 (about $2,181) worth of credit, and will have no interest payments, no late payments and no foreign currency fees. It will be able to be used at any place that accepts Mastercard.
However, customers who use CommBank Neo will not be able to use it for cash advances or for gambling purposes, the bank said.
CommBank Neo will be available for a fixed monthly fee to CBA clients, with that fee to be refunded if they make no purchases over the course of a month and have a card balance of zero.
Customers can access a credit limit of AUD 1,000, AUD 2,000 or AUD 3,000 through CommBank Neo, with a minimum payment of either AUD 25 or 2% of the closing balance for the month, whichever is greater.
Additionally, eligible CBA customers who opt to use a CommBank Neo card will have access to the full range of cash-back options and other discounts offered through the CommBank Rewards loyalty program, according to Angus Sullivan, CBA group executive of retail banking services.
“We are really excited to launch our simple, easy-to-understand product which we believe offers great value to our customers,” Sullivan added.
Australia’s largest bank added that it expects its small business clientele to “find a simple, monthly flat fee product like this appealing,” and that it is working on developing CommBank Neo Business, with an expected launch date in early 2021.
The reveal of CommBank Neo follows other recent developments made by CBA aimed at providing its customers with flexible lending and spending options. The bank debuted its BizExpress Online service last month to enable small business customers to receive a credit decision and up to AUD 50,000 (about $36,000) deposited into their accounts in minutes.