American Express (Amex) has launched a new service that lets UK credit card customers pay off purchases on their statement, or a portion of their monthly bill, in instalments.

Similar to Buy Now, Pay Later (BNPL) plans from providers like Klarna, 'Plan It' allows Amex credit card holders to select a transaction, or a specified amount from their most recent statement, and put it into an instalment plan for three, six, or 12 months.

While Amex customers will be charged a fixed monthly fee for any instalment plan they set up, they will not be charged interest on any balance in their instalment plan.

To use the new service, customers must have a minimum of £100, and a maximum of 85 per cent of the statement balance, in a plan.

“With Plan It, our credit card customers can now pay at their own pace, continuing to earn rewards as they do so on everything from a new vacuum cleaner to their next big holiday,” said Ricky Bonham, vice president, American Express. “As a business regulated by the FCA, we’re also delighted to be launching an instalment plan that offers transparent fees and no hidden charges.”

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