As we head into October, the jolly road to Christmas is drawing into focus. And what goes hand in hand with the holidays? Gift shopping. Whether you get your Christmas shopping in early with sales like Black Friday and Cyber Monday, or you leave it to later on, now might be the time to sort out what payment method you’ll use. The key of course is making sure you don’t end up knee deep in Christmas debt, so planning early and setting a budget is always a good idea. With that in mind, one popular payment method to consider might be Buy Now Pay Later (BNPL). Mozo's 2021 Buy Now Pay Later Report found that over half of BNPL users are turning away from traditional banking options and 42% have been using BNPL for three or more years.So the question is… why might you opt for BNPL this Christmas? We’ve broken it down into three key reasons:
‘Get cover, pay later’ is the slogan of the new Buy Now Pay Later provider Coverpay. It is the latest in a string of newly launched BNPL service providers that promise Australians access to services, without having to pay the full amount, upfront.
Today, payments giant Mastercard announced a new Buy Now Pay Later (BNPL) program. Challenging the likes of BNPL big players such as Afterpay, Zip, Klarna and humm as well as big banks like CommBank, Suncorp and Citi (who each offer their own BNPL options), Mastercard claims to be shaking things up. And that’s with its new program ‘Mastercard Installments’. “At the heart of it, payments come down to choice – and people want more from their money with greater flexibility and control in how they pay and where they shop,” said Mastercard’s chief product officer, Craig Vosburg. “Mastercard Installments has been built on our guiding principles to protect consumers and enable choice without sacrificing trust and security. It is a digital-focused way to pay today and tomorrow, delivered through consumer’s most trusted relationships with their banks and other lenders, at merchants of their choice.”
Today, Buy Now Pay Later (BNPL) giant Afterpay has announced a new feature to be launched for customers: ‘Retro’. With Retro, Afterpay users can retrospectively decide to pay off a transaction they've made in four instalments using BNPL - which the platform claims is a world-first. But there are some conditions … The feature will be launched soon with the Money by Afterpay app, a payment platform backed by major bank Westpac. The app will offer BNPL options, a daily transaction account and debit card, as well as up to 15 savings accounts - all in one place. “As we continue building out the Money experience, we’re creating a platform for customers to change the way they think about their money,” Afterpay executive vice president, new platforms, Lee Hatton said. “The integration of BNPL and now Retro will give customers a one-stop app for their money management, allowing them to be more in control of their money than ever before. Customers can forgo salary advance apps or overdraft facilities in favour of a single solution that doesn’t charge fees. We’re excited to announce this first Afterpay superpower and look forward to sharing more as we get closer to launch.”Essentially, this means that the Retro feature will only be able to be used on transactions made using Afterpay’s in-app Money debit card. Plus, it’s only available for up to $200 of a customers’ Afterpay account limit. So say a customer has an Afterpay limit of $1,000, $200 can be used for Retro and the remaining $800 can be used for regular Afterpay transactions. On top of that, customers will only be able to use Retro on purchases made up to 72 hours prior.
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 …
If you’ve ever made an online purchase, you’re probably familiar with PayPal. The payment platform offers a simple way to pay for items without having to provide your card information directly to the merchant.
Gone are the days where Buy Now Pay Later (BNPL) is only associated with big retailers. In fact, according to Afterpay’s Next Gen Index, more Aussies under the age of 40 are shopping with small businesses using BNPL. With a focus on two age groups: Gen Z (9 - 24 years old) and Millennials (25 to 40 years old), Afterpay recorded that 67% of all Afterpay spend in small businesses comes from these age groups. And since last year, the Millennial collective saw a growth in small business spending of 20% year-on-year, while Gen Z’s contribution grew by 45% in the same time period. “Gen Z and Millennials are driving change at the intersection of culture and commerce, so it's no surprise they have been key adopters of Afterpay and BNPL more generally,” chief strategy officer at Afterpay, Mark Teperson said. “This demographic is set to account for nearly half of the globe’s retail spend by 2030. Their influence on the economy will only continue to grow, especially as they reach peak earning years.” Afterpay’s latest stats showed that BNPL usage in Australia has skyrocketed since January 2020. Gen Z and Millennials’ usage grew by 174% and 110% respectively, while credit card spending remained static for those over 25 and dropped for those younger. “Gen Z and Millennials are becoming a powerful force in the economy. Within the next ten years, they’ll represent nearly half of Australia’s total retail spend,” chief executive officer of the Australian Retailers Association, Paul Zahra said. “BNPL has proven to be incredibly popular for young Australians who are embracing new payment options in growing numbers. It’s important that retailers can adapt to the consumer trends that are emerging, and through the Next Gen Index, business owners have access to the data, insights and tools they need to grow and innovate.”
Today, CommBank has officially launched StepPay - it’s brand new Buy Now Pay Later (BNPL) service. CommBank introduced StepPay to customers last month and were taking pre-registrations, however it’s only as of right now that the platform is live for them to use. “We’re excited to create the first BNPL from a major bank which can be used anywhere our cards are accepted,” CBA’s executive general manager, Marcos Meneguzzi said. “We know BNPL is a popular choice among customers, but is hampered by its limited use and availability in only selected retailers and businesses. With StepPay, customers have freedom around where they’d like to shop, offering the same accessibility as our other CBA cards. "
When a business is bought by another company, often some changes are made. For this reason, Afterpay customers may now be wondering whether the service will look a little different, after the buy now pay later giant is sold to Square.
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