What features should I look for in a Buy Now Pay Later platform?

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 …

Just to recap, here are the BNPL features to keep an eye out for 

As you can see there are plenty of features to consider, and the truth is one platform may not tick all your boxes … but it may tick most. 

Here are the features you should note when you compare Buy Now Pay Later providers: 

• Fees: This includes an account keeping fee (usually monthly) and late fees (some of which are low or have caps). 
  

• Spending limits: Some platforms are only designed for small purchases so offer small spending limits, while others are designed for larger purchases so offer larger limits. Keep in mind, some platforms perform credit checks before you sign up and may offer you a smaller spending limit depending on your credit history. Or you may be offered a smaller spending limit when you first sign up, which may be made larger as you prove you are good at making your repayments. 
  

• Availability in store: If you're planning to use your BNPL platform at a range of different stores, you’ll want to find an option that allows you to do just that. On the other hand if you are after a specialised service, such as home renovation BNPL BrightePay, store availability may not be as important to you. 
  

• Easy to use: There’s nothing worse than signing up for a payment service and feeling stumped on how to use the tech! Ask around to others you know that already use the platform and find out how easy it is to use - it may save you a lot of frustration. 
  

• Repayments: With BNPL, you’ll need to make repayments after making a purchase. Generally speaking, BNPL platforms split the repayments into fortnightly repayments - however some offer weekly or monthly options too. So if you need the flexibility to choose when you make repayments, ensure this feature is one of your priorities. Also remember, some platforms charge the first repayment at the same time you make the purchase while others have no charge at the time of purchase. So that’s something worth considering.  
  

• Returns: Mozo’s research found that 30% of BNPL users order multiple items using the platform with the intent to return at least some of their purchases. This means that many customers value a seamless return and refund process. So if this is you, it’s worth checking the T&Cs of how returns work. 
  

Want to find out more? Head over to our Buy Now Pay Later hub for all the information you need and to compare BNPL platforms and features.