Over a year ago, there was talk of a new Code of Practise major Buy Now Pay Later (BNPL) companies were expected to sign. Today, that code is now officially in business. Developed by the Australian Finance Industry Association (AFIA), the Code of Practise sets the best practise for BNPL, while ensuring customers are protected. According to the AFIA, the Code is a ‘world first’ for the BNPL sector and will aim to go above standard Australian law.“From the get go, strengthening consumer protections across the sector was a focus for AFIA and its BNPL members. The Code is explicitly consumer focused and has nine commitments that signatories make directly to the people that use their products and services,” said AFIA chief executive Diane Tate. Some of the obligations Buy Now Pay Later companies must abide by include forbidding customers under the age of 18 from using the service and prohibiting users in financial hardship from making additional purchases on the platform. Other rules include capping late payment fees and conducting customer checks before they approved for the service.
For many Aussie shoppers, using Buy Now Pay Later (BNPL) at the checkout has become as common as paying with a debit card. In fact, Mozo found that 5.8 million Aussies have at least one BNPL account. But if you are one of the few who are yet to take this innovative payment method for a spin, it’s important to understand how to use it correctly. To get you off on the right foot, we’ve jotted down some do’s and don’ts of using Buy Now Pay Later.
Considering using Buy Now Pay Later (BNPL) to make purchases online? Or maybe you already do ... You’re not alone. In fact, according to ASIC's 2020 Buy Now Pay Later: An Industry Update report from the 2017-18 financial year to the 2018-19 financial year, the number of active BNPL accounts across six providers grew by 38% (from 2.7 million to 3.7 million). There was also a large increase in BNPL transactions, too. From June 2018 to June 2019, the number of purchases increased from 1.9 million to 3.4 million (an increase of 75%). “It’s not surprising that Buy Now Pay Later platforms continue to see an uptick in the amount of customers signing up and making purchases,” Mozo director, Kirsty Lamont says. “However, unlike the security of a large bank or credit card provider, some consumers may have questions around how these newer platforms store and protect their information and whether its a safe payment method to use online.” So how secure is using BNPL online? Let’s take a look … ASIC found that over the 2018-19 financial year, Afterpay (73%), Zip (11%) and Humm (11%) had the highest total value of transactions. All three platforms can be used both online and in-store. So we’ve compared these three BNPL providers to find out what information they collect from consumers on sign up, how they use it and any risks that come from using them online.
One of the latest fintech innovations to hit Aussie shores is Buy Now Pay Later (BNPL), the interest-free platform which breaks up your everyday spending. At the time of writing, there are more than ten BNPL options available, with each delivering a different customer experience. So if you’ve been thinking about signing up for a Buy Now Pay Later service, finding the one that’s right for you can prove difficult. However it’s important to find the platform best suited to your spending needs, as it can help you save in unnecessary fees. To help you find your Buy Now Pay Later match, we’ve compiled a few scenarios you might align to and suggest an appropriate BNPL option.
Buy Now Pay Later (BNPL) has become a popular payment method for Australians in recent years. In fact, recent Mozo research suggests that 5.8 million Aussies already have at least one BNPL account. Mozo Director, Kirsty Lamont says the allure of a zero interest payment service is why Buy Now, Pay Later has surged.“Research has shown that younger Aussies are steering away from credit cards out of a fear of landing in massive debt,” said Lamont. “Buy Now, Pay Later promises a low cost alternative to the traditional plastic, wrapped up in a nifty app.”There are over 10 providers in Australia currently offering BNPL services. If used responsibly BNPL can be a helpful budgeting tool, but like any new money-related innovation, it’s important to understand all of the ins and outs before you sign up.