Afterpay is an Australian-based lender, founded in 2014. Millions of global customers have already set up Afterpay accounts, and over 100,000 merchant partners have all committed to giving their customers more financial freedom in-store and online.
With the option to buy now and pay later, and to pay over six months, more and more consumers are choosing to go with Afterpay to boost their buying power and maintain control of their personal finance when making purchases.
Afterpay was initially designed to only pay for goods available to buy online and in-store, such as clothes, shoes, and electronics, but has evolved over recent years to include even more transactions. With the release of Afterpay retro, customers have the freedom to pay for a variety of goods and services over time, including some bills.
So, how far can Afterpay go in helping you pay for your outgoings?
Let’s get to the following commonly asked questions:
Whether you’re able to make bill payments using Afterpay depends on the type of bill you’re paying and how you make the payment.
If you want to pay bills in person you’ll need to download the Afterpay app so you can access an Afterpay card, which is designed to be used similarly to a credit card. You can even add Afterpay to Apple Pay or your Google Wallet to spend easily in person.
There will be a maximum purchase amount set on your Afterpay account depending on your credit history and how you use your account, for instance, if you pay your Afterpay charges on time.
Since Afterpay payments are designed to be used either online or in-store, it is not meant to be used for paying bills such as your energy payment, phone plan, life insurance, or car loan.
It’s not possible to transfer Afterpay to your bank account since it isn’t classified as a personal loan or line of credit. When setting up a payment plan on Afterpay you need to either use a credit or debit card and you cannot transfer a balance on Afterpay to another card.
We would not recommend using Afterpay as a tool for managing your debt, since missed payments will be visible during credit checks.
Afterpay can be used for in-person and online shopping and over 75,000 retailers accept Afterpay as a form of payment.
Here are some examples of who accepts after pay:
There are limits to your available purchase amount depending on whether you have a late payment history which is determined through a credit check, but for the most part you can simply tap and pay in the majority of stores.
No, you need to have some money to Afterpay to pay for goods, as you’ll likely have to pay for the first installment up-front.
Afterpay gives you the option to split your purchases into four interest-free installments over 6 or 12 months. There’s typically a minimum purchase amount of $35 dollars depending on whether you pay online or in-store. For more information, visit the Afterpay website.
Buy now pay later can be a good option for consumers with a limited disposable income, however, it’s easy to fall into a cycle of debt, especially if you frequently pay late.
Although Afterpay isn’t classed as a line of credit, failing to make repayments will be visible to credit bureaus and can affect your credit score. When you miss a payment, you’ll be charged a late fee of $10.
BPAY is designed to help Australians manage their bills with a single method through online or mobile banking. With BPAY, you can choose which account you want to pay bills from and schedule set dates to pay your bills.
As long as you have available funds in your account, BPAY is a fantastic way to maintain more financial control.
As of 2023, BPAY is offered by over 150 Australian financial institutions, credit unions, and building societies.
Afterpay does not accept payments from BPAY and therefore it is not possible to pay BPAY bills using the platform. Afterpay is only designed to make paying for high-purchase-size products easier by splitting up the cost into manageable chunks.
If you’re struggling with financial planning and paying on time then read more for our expert tips on debt management.
While it was previously impossible to pay utility bills using Afterpay, in 2021 the platform announced its new payment plan ‘Afterpay metro’. This gives consumers 72 hours to create a pay-in-four plan for certain debit transactions.
The Retro plan has a credit limit of $200 available which can be paid over time. For example, if your utility bill comes to $250, you can choose to pay $250 up-front and then retrospectively get the $200 back and pay it off over a period of months. This will come with transaction fees if you can’t pay on time.
Afterpay is designed to give its clients more control over their finances by paying in installments over time in-store and online.
While Afterpay is designed to pay for consumerist products such as furniture, clothes, and electronic devices, the release of Afterpay retro means that users have the option to split transactions made on eligible debit cards.
For more, why not read our article ‘What happens if you don’t pay off your credit card?’ Alternatively, contact an expert at WeMoney today.
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Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs, or financial situation.