Buy now, pay later services have gained quite popularity among online shoppers in Australia. Most e-commerce sites offer this payment solution to their online shoppers for a sale boost. One of the most innovative and used approaches of payment solutions by online shoppers is AfterPay. Frequent online shoppers might already know the concept of AfterPay and how does AfterPay work. AfterPay is a buy now, pay later (BNPL) platform that has emerged as a popular payment method in Australia.
According to Statista, AfterPay had approximately 3.6 million active customers in 2021. That's a straight 8% increase over the number of active users in 2020 (3.3 million)!
AfterPay provides you with an opportunity to buy anything online and make the payment later in instalments. Using this payment method may sound a good deal, but you need to consider a few critical aspects.
In this article, we will discuss everything about AfterPay and how does AfterPay work.
What is AfterPay?
AfterPay is one of the popular payment methods in Australia that was founded in Sydney in 2015. The buy now, pay later facility allows you to buy any product online and make the payments later in instalments. AfterPay is also the fastest growing payment option across Australia and other countries because of payment convenience. Frequent online shoppers may find AfterPay an affordable option to shop for their favourite products. Millennials prefer this BNPL facility to shop online as it suits their spending habits. Buy now, pay later stores in Australia allow you to buy anything online - from clothes, furniture, cosmetics, pharmaceuticals to flight tickets.
How Does AfterPay Work in Australia?
AfterPay is a BNPL platform that acts as a moderator between retailers and customers. The BNPL service pays to the retailer on behalf of the customer, and then the customer will have to pay back the necessary amount to AfterPay. Let's understand the process:
- You visit the online store, select your favourite product, and proceed with the check out process. Upon selecting the payment method, you will see various options. Select AfterPay and proceed with the checkout.
- Once you buy the product through Afterpay, you will have to make four interest-free instalments over six weeks. The total payment will be of the same value and interest-free.
However, make sure you keep a tab on all the upcoming payments after using AfterPay. If you fail to make the payments on time, a late fee will be charged to you. Additionally, you can opt for an automatic payment option or consider paying manually during due dates.
Does AfterPay Have a Monthly Fee?
AfterPay is a free BNPL service with no interest incurred. The only thing to keep in mind is the timely payment. If you miss a payment, you will be charged a late fee. Additionally, missed payments will also restrict you to buy or booking anything with AfterPay until you settle the amount. AfterPay will not affect your credit score as it does not report missed payments or loans to the credit bureaus.
What Are the Advantages of AfterPay?
- Automatic framework for payment
- Easy refund process
- A fast and easy approval process
- Fee and interest-free terms
- Seamless integration within stores
- Increased impulse buying and spending
- Limited spending
- Non-payment fees
So, is AfterPay a bad idea? NO! AfterPay offers you the benefits of buying things online and making payments later. You simply need to keep tabs on impulse buying and pay the instalments on time.
Kings Warehouse is one of the leading AfterPay online stores in Australia that offer this BNPL service on all products. Browse through our extensive collection of bed frames, beds, furniture, and more and buy using the AfterPay service.