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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 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.
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Openpay |
Zippay |
ZipMoney |
Afterpay |
Provider Info |
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Current Account holders |
Not Published |
800,000 + |
800,000 + |
2m + |
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App for customers to shop from directly |
Yes |
Yes |
Yes |
Yes |
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Web storefront for Merchant sites |
Yes |
Yes |
Yes |
Yes |
Customer Info |
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Credit Range |
Upto $17,500* |
<$1,000 |
$1,000-$30,000 |
Upto $1,500 |
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Interest Free Period |
0% always |
0% always |
0% interest for 3 months |
0% always |
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Purchases |
Added to account |
Added to account |
Added to account |
Each purchase is broken into a 4 payment plan. |
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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. |
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Payments |
1st payment at time of purchase.
Remainder with Flexible payment schedule options.
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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 |
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Min payment |
- |
$40/month |
From $40/month |
¼ of total amount. |
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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 |
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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. |
$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 |
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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
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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. |
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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 |
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Business Size |
Not Published |
Any |
Any |
Any |
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Setup fees |
Not Published |
No Sales, No charges |
No Sales, No charges |
Not Published |
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Transaction fees |
Not Published |
15 Cents |
15 Cents |
30 cents |
|
Commission |
Not Published |
2-4% |
2-4% |
Starts at 6% |
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POS |
Yes |
Yes |
Yes |
Afterpay app creates a barcode that is scanned at checkout. |
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Lock-in Contracts |
Not Published |
No |
No |
No |
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Credit Card + Fraud risk |
Up-front payments |
Up-front payments |
Up-front payments |
Up-front payments |
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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 |
Still have questions?
For further insights, you might consider reading the * ASIC Review of buy now pay later arrangements (Nov 2018) .
Or even better, get in touch!
