Which Buy Now Pay Later platform should I use?

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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.

But first, let’s break down the advantages of Buy Now Pay Later:

  • Avoid paying interest - One of the biggest reasons someone might choose BNPL to support their spending is to avoid paying interest. Almost all BNPL platforms don’t charge interest, rivalling the humble credit card
  • Enjoy minimal fees - Unlike a credit card, BNPL services don’t charge an annual fee and are generally pretty minimal on other fees. Of course there is a late payment fee, but this is only charged if you miss a payment. 
  • Suit your paycycle - As the majority of BNPL ask their customers to make their repayments on a fortnightly basis, this might be favourable to Aussies who are paid on the same schedule. 
  • Handle big upcoming purchases - If now you’ve got to make a large purchase in the future, BNPL can help break up the purchase, allowing you to stay within your monthly budget and stay on track with other bills.
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Your Buy Now Pay Later options

Afterpay 

Afterpay features a maximum account limit of $2,000, which is available to customers who have a positive repayment history. With Afterpay, you’ll have four equal fortnightly installments for each purchase you make. Plus, you’ll be able to use the service at participating retailers both instore and online. Just keep in mind that there is a $10 late payment fee to watch out for. 

Zip Pay 


Zip Pay gives customers a maximum account limit of just $1,000, which can help keep your spending from getting out of hand. This BNPL is also flexible in terms of its repayment cycle, as customers can set their installments to be on a weekly, fortnightly or monthly basis. There is a $6 monthly account fee with Zip Pay, but this is waived if your account has a $0 balance. 

Klarna 


Klarna is another BNPL option for Aussies who don’t mind having a smaller account limit. It's for this reason that it snapped up a 2021 Mozo Experts Choice Buy Now Pay Later Award in the Small Purchases category. Klarna works a little differently to other platforms, as customers will need to create a ‘One-time card’ at the checkout. This allows them to use Klarna anywhere, regardless of whether the retailer is a participating store in the app. Plus, Klarna treats its customers to the occasional discount code or reward, helping them save some cash on their shop!

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Your Buy Now Pay Later options

Bundll

Bundll is available at any retailer that accepts Mastercard and gives customers a maximum account limit of $1,000. Unlike other BNPL services, Bundll customers are able to ‘bundle’ all their purchases made in a week into one place and are then given two weeks to pay off the balance. If you are thinking about signing up to Bundll, just make sure you time your spending right, as there is a $10 late payment fee. 

Latitude Pay 


If you’re happy to make weekly payments, then you might want to consider Latitude Pay. This BNPL is also designed for smaller purchases and features an account limit of up to $1,000. There’s also a bit more flexibility with this service, as customers can change the day when their repayments are due. There is also a $10 late payment fee with this BNPL. 

LayBuy
 

Similar to Latitude Pay, LayBuy asks customers to make six weekly payments with a maximum account limit of $1,200. Setting up your account is also a breeze and can be done within seconds and you’ll be able to choose the day you want to make your repayment each week! Just be sure to jot down your repayment dates, as you could incur a $10 late payment fee.

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Your Buy Now Pay Later options

Openpay 

Although Openpay only permits a maximum account limit of $3,000, it is still on the higher end compared to other BNPLs. Through Openpay, customers can choose between weekly or fortnightly installments, giving them flexibility in how they pay back their balance. However, one thing to keep in mind is that you will be charged a fee based on the size of your purchase. 

Humm


Humm is built for all kinds of spending and offers customers two different account limits, which range from $2,000 to $30,000. Plus, humm won a 2021 Mozo Experts Choice Awards in the Buy Now Pay Later category for best provider for Major Purchases. And because there is the ability to purchase big ticket items, the number of your installments will depend on the size of your purchase. Another feature to be aware of is if your purchase requires more than ten installments, you will be charged an $8 monthly fee. 

Payright 


Our last pick is Payright, which offers customers a maximum account limit of $10,000. Because of this, Payright will conduct a credit check before you purchase a product to guarantee your capacity to pay the balance back. And depending on the size of your purchase, there may be an establishment fee and other fees involved.

Want to deeper look at some of the other Buy Now Pay Later options out there? Check out our in-depth Buy Now Pay Later guide or our in depth BNPL statistics page.