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By Mark Story
CBA’s BNPL entry
Having taken a stake in the buy now pay later (BNPL) firm Klarna in 2019, Commonwealth Bank ((CBA)) is launching its own BNPL product to the bank’s consumers, which can be used anywhere Mastercard is accepted.
Morgan Stanley believes Commonwealth Bank’s decision to launch a BNPL offering was in part driven by desire to protect its market share with younger customers. The broker notes, CBA has around a 45% market share with 18-24 year olds, which is also a key market for the BNPL sector. Morgan Stanley also suspects by having its own BNPL offering, CBA can protect its customer spending data from being shared with other financial providers.