Estimated read time: 16 minutes

Buy now, Pay later has revolutionised the way people purchase online.  They have quickly become Australia’s largest lead referrers and account for a significant and ever increasing share of purchases.  Millennials in particular choose to avoid traditional credit options in preference to getting what they want with interest free payments.  This has changed their purchase behaviour to the extent that they are likely to begin their shopping experience from their BNPL app instead of browsing online.

’More than four in five consumers (86%) who had used a buy now pay later arrangement within the last 12 months plan to do so again. Most users also believe that these arrangements allow them to buy more expensive items, spend more than they normally would, or make more spontaneous purchase ’    - *ASIC Review of buy now pay later arrangements

In our previous blog Buy Now, Pay Later, Performance Insights we’ve looked at the benefits that offering Buy Now, Pay Later options can bring to a merchant.  This time we’re going to compare the individual BNPL options available to you on our Commerce Vision platform.  These providers will appeal to different customer demographics so you should also check with your customers to see who they prefer to use.

 The information below should be considered as a guide and correct at the time this blog goes out but as contracts can vary, I encourage confirmation of all details directly with your BNPL account manager prior to implementation.

 

 

Openpay

Zippay

ZipMoney

Afterpay

 

Provider Info

Current Account holders

 Not Published

800,000 +

800,000 +

 2m +

App for customers to shop from directly

Yes

Yes

Yes

Yes

Web storefront for Merchant sites

Yes

Yes

Yes

Yes

 

Customer Info

Credit Range

Upto $17,500*

<$1,000

$1,000-$30,000

Upto $1,500

Interest Free Period

0% always

0% always

0% interest for 3 months
Promotional offers 6-48 months

0% always

Purchases

Added to account

Added to account

Added to account

Each purchase is broken into a 4 payment plan.

Other requirements

We will not allow you to redraw any amount under an Openpay Plan in accordance with clause 9.1 until you have made at least 20% of the instalments owing in connection with your most recent purchase financed under the credit contract with us.

 

 

 

Payments

1st payment at time of purchase.

 

Remainder with Flexible payment schedule options.

 

 

1st Payment at the end of next month.

 

Pay in full or min amount at the end of each month.

1st Payment at the end of next month.

 

Pay in full or min amount at the end of each month.

Your payments are split into 4 simple automated payments, every 2 weeks.

First time Afterpay users always need to pay the first installment upfront

Min payment

-

$40/month

From $40/month

¼ of total amount.

Establishment fee

An Establishment Fee or Redraw Fee may be applicable on all approved Openpay Plans. The Establishment Fee or Redraw Fee (as applicable) varies at each Participating Merchant.

$0

$0-99

Based on credit limit

$0

The only fees Afterpay charges are late fees for missed payments

Account Fees

You will incur a Plan Management Fee as specified in your Openpay Plan for each instalment regardless of the payment method you choose.

Capped as follows:

in the first 12 months after commencement of this credit contract $200.
in each subsequent 12 month period $125.

$6/month waived if you have no balance

$6/month waived if you have no balance

$0

The only fees Afterpay charges are late fees for missed payments

Default Fee

If you fail to make a payment by its due date, a Late Payment Fee in addition to the relevant Plan Management Fee applies and must be paid by you immediately

Default Fee of up to $9.50 each time you fail to make an installment due under this credit contract

 

If you do not pay the minimum of $40/month (or remaining balance if less), we may apply a late fee of $5 (or $15 for Zip Money) after 21 days. Long term this may also have an effect on your credit score. 

If you do not pay the minimum of $40/month (or remaining balance if less), we may apply a late fee of $5 (or $15 for Zip Money) after 21 days. Long term this may also have an effect on your credit score.

A flat $10 late fee per payment and a further late fee of $7 if the payment is not made within 7 days.

Late fees

Please contact us before the payment due date to reschedule and avoid late fees.

Late fees will apply.

If your scheduled payment fails then we will attempt to take any overdue amount the following business day.

If your scheduled payment fails then we will attempt to take any overdue amount the following business day.

A flat $10 late fee per payment and a further late fee of $7 if the payment is not made within 7 days.

 

Merchant Info

Business Size

 Not Published 

Any

Any

Any

Setup fees

  Not Published

 No Sales, No charges

 No Sales, No charges 

Not Published

Transaction fees

Not Published

15 Cents

15 Cents

30 cents

Commission

Not Published

2-4%

2-4%

Starts at 6%

POS

Yes

Yes

Yes

Afterpay app creates a barcode that is scanned at checkout.

Lock-in Contracts

  Not Published

No

No

No

Credit Card + Fraud risk

Up-front payments

Up-front payments

Up-front payments

Up-front payments

When do you get paid?

You are paid the next business day once a transaction has been made. 

Every day at 4pm

Every day at 4pm

Typically within 48hrs

 

Product Reviews

 To get a good insight for how customers use ‘Buy Now, Pay Later services’ and what they think of them, check out what they say in their reviews on Product Review.

 openpay-product-reviews

Able to make purchases when on special!

 5 star

Great for buying larger ticket items. Easy to handle payment spread over time. Also great for emergency when you don't have all of the funds. Would recommend to friends and family.

https://www.productreview.com.au/reviews/79225abb-defe-4b33-827b-93d37db2e9ab

 zippay-product-reviews

 A great addition to my business

 5 star

Gives me the opportunity to invest in good quality tools without the upfront investment. Was able to download the app and be approved for finance in about 5 minutes. The whole experience was just easy!

 zipmoney-product-reviews

 A Simple Solution

 5 star

I had to get my daughter a laptop for school and I've been promising for months, everytime i saved up the money, something new would come up. Thanks to Zip I got the laptop and i pay it off. Happy Daughter.

 afterpay-product-review

 Very happy with Afterpay

 5 star
It has helped me buy furniture for my family that would I would not have afforded thanks to the easy payment schedule. As long as you pay by the due date it is interest free

 

For further insights you should also take the time to read  the * ASIC Review of buy now pay later arrangements (Nov 2018) .

 

Until next time…

 

Shaun Cooper

Customer Success Manager

Commerce Vision

 


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