Buy Now, Pay Later services can make the shopping process a lot easier for many consumers, as they offer interest-free loans for responsible buyers. Nevertheless, you should be aware of any additional fees that may arise when using their resources.
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Keep reading for a compilation of the best Buy Now, Pay Later services currently available, with a comprehensive review of each of the platforms on our list.
Let’s dive in!
The Top 6 Buy Now, Pay Later Services in Australia
- Zip Pay – Best Overall
- Clearpay – Best Among Retailers
- Beforepay – Best Service Overall
- Afterpay – Best for Students
- Bundll – Best for Small Purchases
- Payright – Best for Bad Credit
Best Buy Now, Pay Later Services: 2022 Reviews
We researched the market and picked out the best Buy Now, Pay Later services in Australia right now. To see which ones made the cut, keep on reading, and find out their rates, fees, features, and our overall rating.
1. Zip Pay – Best Buy Now, Pay Later Service Overall
- Rating: 5 / 5
- Transparency: 5 / 5
- Customer service: 4 / 5
- Rates and fees: 5 / 5
- Credit limits: 5 / 5
- Application process: 5 / 5
Zip Pay is the best Buy Now, Pay Later service for those who want to shop internationally without affecting their credit score, as it’s used at many retail stores worldwide. That being said, when you use the app or the browser extension, you will be given a one-time card to pay for your purchases. ZipPay collaborates with several merchants offering great discounts or cash back rewards, so browse through exclusive deals.
Zip Pay provides credit lines between $10,000 and $500,000, and you can repay your loan weekly, fortnightly or monthly in interest-free instalments, not smaller than $40. Nevertheless, you should expect a $7.95 monthly account fee, which is waived if you pay your statement closing balance in full by the due date.
For purchases over $1000, there is no interest rate for the first 3 months; however, when the promotional period ends, interest will be charged at 21.9% per annum. In addition, there’s a one-off establishment fee for new customers in the Zip Money plan.
Most importantly, ZipPay makes no credit check when you go through the application process, making it one of the best Buy Now, Pay Later sites for individuals with bad credit. Furthermore, it won’t hurt your credit score in case you fail to make a payment on time. Ticking all our boxes, we ranked Zip Pay as the best Buy Now, Pay Later service overall.
Read more about the excellent payment method in our full Zip Pay review.
2. Clearpay – Best Among Retailers
- Rating: 4 / 5
- Transparency: 4 / 5
- Customer service: 3 / 5
- Rates and fees: 4 / 5
- Credit limits: 4 / 5
- Application process: 5 / 5
Clearpay’s virtual credit card that can be added to Google Pay or Apple is an outstanding feature for purchasing as you can access this Buy Now, Pay Later service online as well. Additionally, what makes this service so popular among many retailers in Australia is that you can pay using your Apple Watch.
PROS:
- No credit check
- No interest rate
- Won’t hurt your credit score
CONS:
- A 21.9% interest fee for loans over $1000
Once you purchase something, the repayments can be made in four instalments over a period of six weeks. Keep in mind that in case of late payment, you will be charged a certain fee. On a positive note, there’s no interest rate for the purchases.
But is Clearpay safe? You can be assured of its safety as it is part of the Afterpay Touch Group, which is level 1 certified by the Payment Card Industry Data Security Standard (PCI DSS).
3. Beforepay – Best for Budget Plans
- Rating: 5 / 5
- Transparency: 5 / 5
- Customer service: 4 / 5
- Rates and fees: 5 / 5
- Credit limits: 4 / 5
- Application process: 5 / 5
The Beforepay service will allow you to withdraw up to $2000, depending on your Cash Out limit assessment, and repay it in four instalments. One of the great things about Beforepay is that there are no additional fees, just a 5% transaction fee. On top of that, you can delay your repayments or use the early repayment option.
More than 3400 stores
Clearpay virtual card for in-store purchases
Clear payment structure
Late fees
Additionally, if you’re someone who struggles with budgeting, this Buy Now, Pay Later service offers financing plans based on your income, budget, and spending habits. However, to obtain access to the Cash Out feature, you need to earn at least $300 a week (it must be deposited into your bank account), have a contract with an employer, and pass their assessments.
Want to learn more? Read through our comprehensive Beforepay review.
4. Afterpay – Best for Students
- Rating: 4 / 5
- Transparency: 4 / 5
- Customer service: 4 / 5
- Rates and fees: 4 / 5
- Credit limits: 3 / 5
- Application process: 4 / 5
If you’re a student, then this is the best Buy Now, Pay Later service you can find. The smart credit limit ensures you can actually afford what you purchase. Similarly to the previous two services, Afterpay offers a virtual card for in-store payments. In addition, it’s one of the Buy Now, Pay Later services in Australia that practises a no credit check policy when signing up.
Quick access to money when needed
No hidden fees, only a 5% transactions fee
No late fees
Limited amount of money to cash out
Luckily, there aren’t any Afterpay fees and costs, as long as you make the repayments on time. The first of four repayments must be done immediately, while the rest every two weeks. If the order is approved by Afterpay, it will be shipped. The downside is that if you miss a repayment, you could be charged a high late fee of 25% of the order amount.
5. Bundll – Best for Small Purchases
- Rating: 4 / 5
- Transparency: 4 / 5
- Customer service: 5 / 5
- Rates and fees: 5 / 5
- Credit limits: 4 / 5
- Application process: 4 / 5
Bundll can be used as a digital wallet to make purchases which you are required to repay in two weeks. This is why Bundll works well with small purchases, as there’s no option to break it down into instalments.
No fees with on-time payments
Helps us stay on a budget
No credit check, no minimum score
High late fees up to 25% of the order
The total amount of how much you can borrow is $1000. If you want to extend the credit limit, go for Superbundll, from which you can get $3000 with an interest rate. There are no fees if you repay on time; however, for late repayments, you will have to pay a $10 fee or a snooze fee of $2.50, which allows you an additional 14 days for repayment.
6. Payright – Best for Numerous Instalments
- Rating: 4 / 5
- Transparency: 5 / 5
- Customer service: 4 / 5
- Rates and fees: 2.5 / 5
- Credit limits: 5 / 5
- Application process: 5 / 5
Payright allows you to buy items online or in-store provided that the merchant uses Payright services. One of the advantages of this app is the possibility of a refund in case you are not satisfied with what you’ve ordered. Additionally, it allows for longer repayment periods compared to other apps of this nature.
Works well with small purchases
Virtual card within an app
No fees for on-time payments
Superbundll is not interest-free
With Payright, big purchases can be made for up to $20,000, and the repayments can be spread over a period of up to 60 months. Nevertheless, Payright will require more fees than the other Buy Now, Pay Later sites we covered. When setting up the Payright account, you will need to pay an establishment fee, depending on your plan length, an account-keeping fee of up to $3.50 per month, and a fee of $2.95 every time a payment is processed.
Buyer’s Guide: What to Look for in a Buy Now, Pay Later Service?
If you’re one of the 9.1 million Aussies who shop online, you should know that although there are numerous Buy Now, Pay Later sites available on the network, not all of them are a good choice for your needs. Here’s what you need to consider before choosing a BNPL service.
Interest-free payments
Up to $20,000 purchasing power
Fast application
More fees and charges
Consider your credit score – if you have a bad credit score, consider going with a BNPL service such as Zip Pay, as it won’t check your credit score.
Research where is the BNPL app accepted – Make sure that the BNPL app you choose is accepted at the stores you buy from.
Check whether the BNPL reports to the credit bureaus – If you’re working on your credit score, on-time repayments are essential, especially if the BNPL reports to the credit bureaus.
Check the credit limit and if it can be increased – As we already mentioned, different BNPL apps offer different credit limits. Consider the credit limit that’s most suitable for you and the repayment period.
Check the fees and interest rates charged – Most BNPL apps don’t have interest rates or fees. However, most of them charge late fees. Inform yourself of how much you will have to pay in those situations.
While BNPL services can be of great help at times, they should be used mindfully and with some precautions. Let’s take a look at some situations in which you should consider these services:
- You want to make repayments without interest;
- You need fast and convenient access to money;
- You want to make minimum repayments for the things you purchased;
- You want to purchase things without a previous credit check.
Benefits of Buy Now, Pay Later for Shoppers and for Retailers
The Buy Now, Pay Later services help boost e-commerce by making shopping transactions a lot easier and safer for shoppers and retailers. In 2021, 26% of Australian regular shoppers used Buy Now, Pay Later to buy clothing. So, what’s the charm behind these services?
Shoppers can typically buy an item and make the repayments in four-instalments, as most BNPL services offer that option, allowing you to shop now and pay later. In addition, the repayments are usually interest-free, and the application process is quite fast.
Furthermore, retailers who use the BNPL model report a 20% increase in conversions. This is mostly due to the fact that a number of new customers opt for brands that they thought were out of their budget range. But most importantly, it keeps the loyal existing customers coming as they know their BNPL service is available at the store.
Are These Services Safe?
Regarding data security, BNPL services are considered safe and secure as they protect their customer’s personal data. Most Buy Now, Pay Later sites include two-factor authentication, industry-standard security compliance requirements and fraud detection measures.
However, most consumers tend to splurge on purchases they normally wouldn’t be able to afford and lose track of their finances. As a result, they have difficulties making repayments. Furthermore, some retailers can take advantage of the BNPL services by pumping up the prices so that the shopper absorbs the cost of the BNPL service.
How To Get the Most out of Buy Now, Pay Later?
To get the most out of the Buy Now, Pay Later apps, consider restricting yourself to one purchase at a time to avoid having to repay multiple instalments at once. When you make purchases, know your limits so that you don’t overspend. It would be wise to spend the loan on essentials and not splurge on things that are not necessary at the moment.
The latest Australian household statistics reveal that Buy Now, Pay Later debt is on the rise. Useful tip from our sleeve – plan for your repayment days. That should be the day you receive your salary or the day after. You don’t want to find yourself paying a late fee.
Bottom Line
Our best Buy Now, Pay Later services selection provides an overview of the top 6 BNPL platforms currently available on the network. While you can utilise their services in case of an unexpected financial situation, consider all the pros and cons first and check whether the stores you visit regularly offer them.
1. What other companies are like Afterpay?
There are numerous Buy Now, Pay Later companies similar to Afterpay. To list just a few: Payright, Bundll, Beforepay, Zip Pay, and Clearpay all offer similar services with some distinctions.
2. Is this service the same thing as a personal loan or a payday loan?
BNPL services differ from a personal loan or a payday loan as there are no interest rates, just small fees. The application process is quite fast and easy. BNPL services are short-term loans (15 days to 3 months) used for small purchases.
3. Can you change your Buy Now, Pay Later repayments?
With some services, you can delay your repayments. However, keep in mind that every missed repayment results in a late fee or delay fee. See how much that fee amounts to in our best Buy Now, Pay Later services comparison.
