Aussies’ Buy Now Pay Later options are growing: here’s how to find the right one for you

In a world of online shopping, digital payments and growing fintech options, Buy Now Pay Later platforms are multiplying and are leaving today’s consumers really spoilt for choice.

Companies like Afterpay, ZipMoney and Humm (previously OxiPay) have all proven to be great, in some cases completely interest-free, alternatives for many shoppers as opposed to products offered by regular banks, such as credit cards.

They can be used for both online and in-store purchases, with options to pay back your balance in weekly, fortnightly or monthly instalments.  

Don’t know which one to choose? We’ve got you covered with all the information you need on these buy now pay later options and their payment requirements, spending limits and any additional fees.


Payment requirements 4 equal instalments (25% of the total amount) every 2 weeks - you can also pay instalments pre their due date
Spending limits Afterpay have no spending limits, they assess your ability to pay them back on time and may increase your limit as time goes on. You usually have a low spending amount in your first 6 weeks with then
FeesIf your payment is late a fee of $10 is applied, and a further $7 is charged if the amount if you still haven’t paid 7 days after the due date. (For purchases $40 or over late fees are capped at 25% or $68 - whichever is less


Payment requirementsMake payments as frequently as you like, there is just a minimum instalment amount of $40 per month
Spending limitsCan be used for purchases under $1000
FeesThere is a $6 monthly fee that is charged at the end of each month (unless your balance is $0) and you’ll have to pay further $5 if you don’t pay the minimum amount due for 21 days


Payment requirementsYou can make instalments whenever you like but you just must meet the minimum payment requirements from $40 a month
Spending limitsUse on larger purchases over $1000 - you can set your personal limit to $1000, $2,000 or $3,000
FeesThere is a 3 month interest-free period, but after you will pay 19.9% p.a. in interest. There is a $6 monthly fee, which is waived if your balance is $0, as well as a $15 late fee and $5 dishonour fee is a payment gets rejected. With Zip Money you could also be charged an establishment fee of up to $299 depending on your credit limit


Payment requirementsThere are flexible payment options with PayRight, you are able to choose your term, your deposit and your repayment frequency
Spending limitsYou can use PayRight on purchases up to $20,000
FeesLate fees up to $12.95 are charged on overdue payments. There is a monthly keeping fee of $3.50 and $2.95 processing fee on all repayments made


Payment requirementsYou are required to make fortnightly payments towards your balance, this will automatically be taken at a scheduled time from your provided Visa or Mastercard
Spending limitsSpending limits vary, depending on which plan you select once you’ve signed up to Openpay
FeesIf you fail to make a payment, a default fee of $9.50 will be charged. Additionally, if your payment is still outstanding after 8 days you’ll have to pay a $19.50 referral fee


Payment requirementsFor “small things” under $2,000 you can pay a total of 5-10 instalments weekly or fortnightly. On “big things”, which can be up to $30,000, you can pay in instalments over a period of 6 - 60 months
Spending limitsThe spending limit on “small things” is $2,000, and for “big things” you can be pre approved for $10,000 or apply in-store for purchases up to $30,000
FeesA $6 late fee is applied to delayed instalments across all purchases no matter how big or small. With big purchases, there is an establishment fee between $35 and $90, a repeat purchase fee of $22 and a monthly fee of $8

PLAY (by Afterpay) 

Payment requirementsAfterpay's PLAY is designed specifically for travel expenses like accomodation and flights, which can be paid in weekly or fortnightly instalments. The maximum number of instalments is outlined on the individual travel packages purchased and range from 2 to 12 months. There is also a 'top up' payment options if you want to make extra repayments on top of your required instalments.
Spending limitsSome of the travel packages (flights, accomodation, tours or a combination of all) can be over $2,000 so there are no specific spending limits. However, packages are usually available for 2 to 3 week periods. 
FeesThere is a $7 late fee on missed instalments but there is a cap of $35. Also there is a cancellation fee of $55 and you may forfeit any non-refundable travel purchases already made. 

Quick tips for Buy Now Pay Later services

  • Set up your account with a debit card: This means that all the repayments you make are from your own funds, not from credit which you could eventually pay interest on. Check out Mozo's hub to compare debit cards.
  • Set reminders for when payments are due: Having a reminder every week, fortnight or month will mean that you won’t miss your repayment due date and won’t incur a late fee.
  • Don't go spending crazy: Just because you don’t have to pay upfront, doesn’t mean you won’t have to pay at all. If you use Buy Now Pay Later on multiple purchases then ultimately the amount of your repayments will increase, it’s important to exercise some control.   
  • Only use when necessary: It’s usually better for you to pay for things upfront, rather than pay in instalments, in the case that you have the funds (if not more) available to make the purchase. Avoid using Buy Now Pay Later just for the sake of it, it can really add up later on.

Sound like an option for you? If so, check out more of our latest Fintech articles for all you need to know about your endless digital money options.