National Australia Bank launched a market-leading credit card offer of 0% interest for 15 months on purchases on its low rate card this week to give customers more flexibility in how they manage their finances and spending heading into the busy Christmas shopping period.
The move comes as the government confirmed credit card deregulation that may see up to 10 new organisations compete with banks, supermarkets and airlines and issue credit cards from 2015 and put downward pressure on credit card fees and charges.
“As we approach the end of the year, we know customers do more shopping online and in stores, and spend more on entertaining family and friends, so we want to make it easier for them to manage their expenses,” said executive general manager Consumer Lending, Angus Gilfillan.
NAB is also continuing to waive the annual fee of $30 on the low fee card, and to offer 0% interest for 15 months on balance transfers on its Premium card.
“In September this year we saw a 4.8% increase in the number of credit card accounts paid in full compared to September last year,” Mr Gilfillan said.
Growth in contactless payments combined with mandatory PIN use at point of sale will allow customers to make transactions faster and easier at a busy time of year, he said.
Minister for Finance Senator Matthias Cormann announced in October that the government is taking action to increase competition in the credit card industry by expanding the number of companies that can issue cards or process card transactions for retailers.