Plan It, a new monthly instalment payment option from American Express (Amex), will allow cardholders to settle purchases or a portion of their amount in equal monthly installments.

Amex cardholders in the UK can use Plan It to pay for purchases on their statement or a portion of their monthly bill in installments of three, six, or twelve months.

Introducing Plan It: How It Operates

As stated in the plan Since its introduction, American Express credit cardholders have had the option to place a specific transaction or a portion of their most recent statement into a 3, 6, or 12-month installment plan.

It almost seems like Amex is attempting to offer a service similar to Buy Now Pay Later (BNPL) within the credit experience; however, unlike genuine BNPL solutions, Amex will charge a fixed monthly fee for customers' installment plans.

As a fixed fee, this charge will not result in interest being charged on any debt in the cardholder's installment plan. It will be disclosed to cardholders at the time of setup.

It is true that Amex cardholders who choose to enroll in a Plan It installment plan can still accumulate Membership Rewards points. Additionally, Plan It will be available for the BA corporate credit card as well as consumer credit cards.

Plan It installment plans can be established online or through the Amex app for cardholders. Once configured, the installment is automatically deducted from the monthly "minimum due" payment.

According to American Express UK Vice President Ricky Bonham, "We know our cardmembers value flexibility, including in how they pay." Plan It allows our credit card holders to pay whenever it suits them, and they will still receive points on purchases ranging from a new vacuum cleaner to their next major vacation.

"We're excited to introduce an installment plan that offers transparent fees and no hidden charges as a business governed by the FCA."

A plan can contain as little as £100 or as much as 85% of the statement balance. This new feature is not available for Amex Charge Cards.