The best buy now pay later companies in 2021
With Mozo’s 2020 BNPL Report revealing more than 5.8 million Aussies currently use Buy Now Pay Later (BNPL) services, one thing’s for sure: BNPL is here to stay.
Whether it’s the appeal of being able to pay off a purchase in interest-free instalments or the convenience of doing so via a handy mobile app, Buy Now Pay Later has become an increasingly popular alternative to credit cards and other forms of credit.
So, if you’re keen to try BNPL but are unfamiliar with the process and service providers, then it might be time to have a word with the experts.
“With Buy Now Pay Later quickly becoming one of the biggest digital payment methods Down Under, it only made sense to assess these services in a dedicated category in our ever-evolving Mozo Experts Choice Awards line-up,” Mozo banking expert Peter Marshall said.
So, let's dig into the details about the winners of our very first Mozo Experts Choice Buy Now Pay Later Awards.^
Picking the winners
Our Mozo Expert judging panel have worked tirelessly to determine which BNPL providers offer the best value services.
After conducting an extensive data collection process they compared 14 Buy Now Pay Later services across a broad range of criteria including product fees, flexibility and availability (which you can read about in our BNPL methodology report).
Small Purchases Award:
There was some fierce competition in the Small Purchases Award category, as many BNPL services allow users to make smaller-value purchases paid back over a shorter timeframe without any additional charges.
“Despite this, Klarna came out on top having wowed the judges with its ability to be used at any retailer that accepts Visa,” Marshall said.
Buy Now Pay Later
- Can be used at any retailer that accepts Visa
- 'Ghost card' maximum of $2,000
- Rewards club & price drop tracking
Klarna was founded in Sweden over 15 years ago and brought to Australia by CommBank. If you want to make a purchase with Klarna (either online or in-store) you’ll first need to create a ‘ghost card’ via the Klarna app and then enter the amount you’d like to spend (maximum of $2,000 depending on eligibility factors). Once your requested amount has been approved you’ll then be able to use the ‘ghost card’ to make your purchase and then pay it off in four interest-free fortnightly instalments. Klarna’s 2021 Mozo Experts Choice Buy Now Pay Later Award win in the Small Purchases category* has proved its worth as a tool for making everyday smaller buys. Just remember to check the terms and conditions for any fees before applying.
Major Purchases Award:
Humm took out the 2021 Mozo Experts Choice Buy Now Pay Later Award for Major Purchases thanks to its ‘Big Things’ option.
“Humm offers the ability to make purchases across a wide range of retailers, has longer repayment periods and larger purchase amounts – not to mention, it has reasonably-priced late fees,” Marshall said.
Buy Now Pay Later
- Offers the ability to make both small & larger purchases
- Accepted at a wide range of stores
- Flexibility to choose which day you make your repayments
With Humm, you’ll have the option to make both small and large purchases paid off over either weekly or fortnightly interest-free instalments. However, keep in mind the number of ‘slices’ (instalments) you have will depend on the size of the purchase you make. If you plan on making smaller purchases then you might choose to open a ‘Little Things’ account which comes with a $2,000 limit. But if you plan on spending big, then you might opt for a ‘Big Things’ account which allows purchases of up to $5,000 via online application or up to $30,000 when you apply in store. Ultimately Humm’s ‘Big Things’ option led to its win in the 2021 Mozo Experts Choice Buy Now Pay Later Award in the Major Purchases category*. Keep in mind that there are monthly fees that can vary depending on what type of customer you are, so be sure to read the T's & C's before signing up.
Specialist Service Award:
In the inaugural Mozo Experts Choice Awards for BNPL, Brighte took home a trophy in the Specialist Service Award category. This award recognises BNPL options offering excellent service in a specific area where customers are paying off larger amounts.
“Brighte has a strong area of specialisation in home improvements, particularly environmental home improvements, making it a great fit for this Award,” Marshall said.
Buy Now Pay Later
- 0% p.a. interest payment plan for solar or home improvement projects
- Up to $30,000 for homeowners
- Fortnightly repayments from 6-60 months
Brighte offers a 0% p.a. interest repayment plan to eligible Aussie homeowners for home improvement projects, with a focus on environmentally-friendly home improvements such as solar power or battery installation, or kitchen and bathroom renos. This specialist focus is what helped score Brighte a 2021 Mozo Experts Choice Buy Now Pay Later Award in the Specialist Service category*. Additionally, this BNPL service charges no early repayment or payout fees, however, it does come with a $1.50 weekly account keeping fee which comes out of your fortnightly repayments.
If you're looking to learn about BNPL as a whole, check out Mozo's Buy Now Pay Later statistics summary.
^See information about the Mozo Experts Choice Buy Now Pay Later Awards
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