CHARLOTTE, N.C. —With the ongoing popularity of buy now, pay later financing, Bank of America said it has launched a new installment-payment feature that allows credit card customers to convert eligible purchases into structured payment plans, part of a broader rollout of tools designed to give consumers more flexibility and insight into their finances.
According to a statement from Bank of America, the new feature, called Custom Pay Plan, enables clients who make purchases with eligible Bank of America credit cards to split those transactions into fixed payment plans through the bank’s mobile app or online banking platform.
Customers can select repayment terms ranging from three to 18 months, the bank said.
The installment-payment option was introduced alongside two other new offerings: a customer referral rewards program and a credit monitoring service.
Bank of America said its new Refer-a-Friend program is available to customers who hold Customized Cash Rewards, Unlimited Cash Rewards or Travel Rewards credit cards. The program provides cash-back or points-based incentives to cardholders who refer friends or family members who successfully apply for a card.
My Credit Debuts
The bank also introduced My Credit, a credit monitoring tool that allows customers to view their FICO credit scores and receive alerts when changes occur. The service also integrates with Erica, Bank of America’s artificial intelligence-powered virtual financial assistant, allowing customers to access credit information through the platform, according to the bank.
The announcements come as financial institutions continue to expand installment-payment options and digital financial management tools amid growing consumer demand for greater flexibility in managing expenses and monitoring credit health.
