Ryt PayLater: Ryt Bank’s Buy Now Pay Later facility from 0% interest, instalments up to 12 months
Ahead of its public release on 26th August, Ryt Bank has quietly introduced Ryt PayLater on its digital banking app. Essentially, this is a Buy Now Pay Later (BNPL) feature which provides a credit line and you can pay back the next month or in instalments of up to 12 months.
At the moment, Ryt Bank is offering a credit limit of up to RM1,499 and eligible customers can activate Ryt PayLater instantly with no documents required.
Ryt PayLater offers up to RM1,499 credit limit, 0% interest for 1 month
Ryt PayLater offers credit line up to RM1,499 with instant activation
To activate the credit line, just tap on the Ryt PayLater icon on the home screen. Depending on your eligibility, they offer up to RM1,499 credit limit which can be activated instantly without requiring any extra documents.
Similar to Shopee PayLater at the moment, RytBank charges 0% interest for the first month. So if you pay in full on or before the due date, there won’t be any interest or charges imposed for using Ryt PayLater.
If you want to stretch your repayment duration, you can choose from 3 months, 6 months, 9 months and 12 months, but these option are only available four days before your 1st month due date.
Ryt PayLater charges 8.87% p.a. interest
Ryt Bank PayLater charges interest rate of 8.87% p.a. for instalments of 3 months
However, if you forget to pay on time, Ryt bank will automatically split the payment into 3 monthly instalments. According to the Product Disclosure Sheet, there are no late fees or penalties, but you will be charged an interest rate of 8.87% p.a. (Effective interest rate: 26.80% p.a.).
Based to the example given, if you utilised RM1,499 for Ryt PayLater, the monthly instalment will be RM510.74 for 3 months.
- 1 month – 0.00%
- 3 months – 26.80%
- 6 months – 30.23%
- 9 months – 31.32%
- 12 months – 31.72%
Do note that if you miss your repayment obligation, your credit line will be suspended until full repayment of the overdue amount is made. While there’s no late payment charge, you will be reported to CCRIS and Ryt Bank has the right to set-off any credit balance in your current or savings account maintained with Ryt Bank against any outstanding balance in Ryt PayLater.
Ryt PayLater now available for DuitNow QR spending
Ryt Bank defaults to PayLater for QR payment. Users can change this in settings.
At the moment, Ryt PayLater works only for DuitNow QR transactions. Obviously, this is limited to merchant QR payments only and it doesn’t work for peer to peer or direct account transfer. Other payment methods such as Ryt Card and online transactions are listed as coming soon.
After activating the BNPL facility, Ryt Bank will automatically use Ryt PayLater as the default “account” for QR payments. You can manually change your payment from PayLater to your Ryt Savings account when making a payment, or disable PayLater as default payment under settings.
While other digital banks such as GXBank and Aeon Bank are currently offering financing to consumers, Ryt PayLater is the first of its kind to offer credit in BNPL style with 0% interest for the 1 month option.
With this facility, Ryt Bank account holders can maximise their returns by keeping their money untouched in Save Pockets to earn the current 4% p.a. interest rate and spend using the PayLater credit line provided by the bank. As long as you pay back in full the following month by the due date, you won’t incur interest.
Like any BNPL service, users have to be prudent in using such facility and to ensure that you spend based on what you can afford to avoid overspending.
Related reading
- First look at Ryt Bank, Malaysia’s first digital bank powered by AI
- Ryt Bank Promo: 4% p.a. interest rate and unlimited 1.2% cashback for overseas spending
