Buy now pay later news and advice

Right now in Australia there are plenty of Buy Now Pay Later (BNPL) platforms available, from services like Afterpay, Zip, Humm and Klarna to specialised options such as BrightePay.  But when it comes to choosing the right BNPL, what features should you look for? What sets each platform apart? Well, it all depends on what you value and how you intend to spend. According to Mozo’s 2021 Buy Now Pay Later Report, there are a bunch of features BNPL users deem as important. For example, 46% of BNPL customers say that the ease of using the platform is the most important feature. Meanwhile, 44% value no account keeping fees, 42% prioritise the amount of repayments purchases are split into and 40% consider the availability of certain BNPL platforms in stores. “It makes sense that Buy Now Pay Later customers consider things like ease of use, fees, repayments and availability in stores before signing up with a particular platform,” Mozo spokesperson, Tom Godfrey says. “But it doesn’t stop there. Mozo’s research found that Aussie shoppers are also weighing up things like spending limits, the returns process and whether or not they are charged anything on the spot when making a purchase using Buy Now Pay Later.”  With that in mind, take a look at our full rundown of what the stats showed about how customers value BNPL features …

Today, Suncorp Bank has announced that it is broadening its services with a new Buy Now Pay Later (BNPL) offering, PayLater.

Are you an avid online shopper? Then you’re probably familiar with PayPal as a simple way to pay for your purchases without having to enter your card information.

Gone are the days where Buy Now Pay Later (BNPL) is only associated with big retailers. In fact, according to Afterpay’s Next Gen Index, more Aussies under the age of 40 are shopping with small businesses using BNPL. With a focus on two age groups: Gen Z (9 - 24 years old) and Millennials (25 to 40 years old), Afterpay recorded that 67% of all Afterpay spend in small businesses comes from these age groups. And since last year, the Millennial collective saw a growth in small business spending of 20% year-on-year, while Gen Z’s contribution grew by 45% in the same time period.  “Gen Z and Millennials are driving change at the intersection of culture and commerce, so it's no surprise they have been key adopters of Afterpay and BNPL more generally,” chief strategy officer at Afterpay, Mark Teperson said.  “This demographic is set to account for nearly half of the globe’s retail spend by 2030. Their influence on the economy will only continue to grow, especially as they reach peak earning years.” Afterpay’s latest stats showed that BNPL usage in Australia has skyrocketed since January 2020. Gen Z and Millennials’ usage grew by 174% and 110% respectively, while credit card spending remained static for those over 25 and dropped for those younger.  “Gen Z and Millennials are becoming a powerful force in the economy. Within the next ten years, they’ll represent nearly half of Australia’s total retail spend,” chief executive officer of the Australian Retailers Association, Paul Zahra said. “BNPL has proven to be incredibly popular for young Australians who are embracing new payment options in growing numbers. It’s important that retailers can adapt to the consumer trends that are emerging, and through the Next Gen Index, business owners have access to the data, insights and tools they need to grow and innovate.” 

Today, CommBank has officially launched StepPay - it’s brand new Buy Now Pay Later (BNPL) service. CommBank introduced StepPay to customers last month and were taking pre-registrations, however it’s only as of right now that the platform is live for them to use. “We’re excited to create the first BNPL from a major bank which can be used anywhere our cards are accepted,” CBA’s executive general manager, Marcos Meneguzzi said. “We know BNPL is a popular choice among customers, but is hampered by its limited use and availability in only selected retailers and businesses. With StepPay, customers have freedom around where they’d like to shop, offering the same accessibility as our other CBA cards. "

When a business is bought by another company, often some changes are made. For this reason, Afterpay customers may now be wondering whether the service will look a little different, after the buy now pay later giant is sold to Square.

Another bank has announced it’s jumping on board the Buy Now Pay Later (BNPL) train! Today, Citi Australia revealed that in October 2021 it’ll be launching a brand new BNPL service called ‘Spot. Buy Now Pay Later.’ And pre-registrations are now open. Traditionally known for its extensive suite of credit card options, Citi says that the service is a separate brand and will be issued by it’s affiliate company, Diners. “We are excited to enter the buy now pay later market with an offering that will be compelling for customers and merchants,” Head of Cards and Loans at Citi Australia Choong Yu Lum said.“This is a global first for Citi, and we’re confident that success in the Australian market could lead to a worldwide rollout of the new payment method.”

First launched in Brisbane and now available in Sydney and Melbourne, payo is a new app that allows customers to Buy Now Pay Later (BNPL) when dining out. 

Buy now pay later  (BNPL) giant Afterpay has announced a broadening of its services into online banking. The new money and lifestyle app called Money begins its rollout today, trialled by the company’s Australian employees.

Big four bank CommBank has announced that it will soon be launching its very own buy now pay later service, StepPay.