Ahmed Fahour with Harvey Norman's Gerry Harvey and Katie Page at the launch of LatitudePay.Credit:Nine
The fees for retailers for purchases over this amount will be between 1 and 3 per cent,Mr Fahour said.
"The low merchant service fees - zero on the most popular pricing segment - means our retail partners get to keep more of the money they make with each transaction,"he said."Consumers will benefit when merchants are able to keep their costs low."
Latitude emphasises that it performs credit checks on its customers to ensure they can pay their bills. Commonwealth Bank last month said that its buy now pay later service - which it will offer through Swedish partner Klarna - will also maintain responsible lending practices.
Mr Fahour said this was important because buy now pay later providers were essentially providing a loan.
Consumers will benefit when merchants are able to keep their costs low.
"This is credit. Some people call it a budgeting tool,that’s a fancy marketing word,they are borrowing money,"he said.
According to Mr Fahour,while Latitude (formerly GE Money) and Harvey Norman had been offering interest-free instalment payments for decades,the big change was that it now extended to lower value transactions.