21sep buynowpaylater hero
21 September 2021

Buy-now, pay-later costing shoppers $10m+ in fees

Convenience of buy-now, pay-later comes at multimillion-dollar cost.

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Chris L.
03 Oct 2021
I am 44 and never paid any late fees

I have used Afterpay, Laybuy and Genoapay and have never paid a late fee. I make sure that I have enough money coming in to pay my mortgage, bills and everything else before making a purchase with a pay-later service. I don't think regulating pay-later services is going to stop people from being silly with money. As a parent, I don't know why managing finances is not part of the curriculum. I learnt how to manage money from making dumb mistakes during my younger years.

James C.
27 Sep 2021
Agree Regulation required

The fact that these BNPL service providers are not captured under existing regulation would surprise more consumers. The FMA and regulators should be proactive in this regard. That's their job. Get on to it and get it done.

27 Sep 2021
Who wants to pay with cash during Lockdown conditions?

Paying by cash is just a pain. I usually have a small amount of cash in my wallet, but pay for 90% of stuff by card. During Lockdown Level 3, some retailers don't want you to pay with cash (signs say Contactless payment only). I always pay by credit card bill in full so I have no problem. (Even if you don't have enough to cash to pay a credit card bill in full, interest on a revolving credit mortgage is massively less than credit card interest.

26 Sep 2021
Works well for me.

I've used most of the laybuy companies listed. Has worked well for me. People need to be financially savvy and make sure there's enough credit on their card to cover the payments. Then pay credit card in FULL. Otherwise buying this way is pointless with credit card interest rates so high.

Brian W.
25 Sep 2021
The user should pay.

If customers want to borrow money to buy "stuff", that is fine provided they pay for the service. Currently BNPL, credit card and paywave costs are loaded into the retailers general overheads, raising prices for everybody. Where is the reward for prudence? There should be a reward for paying with cash or the equivalent.

Sam P.
25 Sep 2021
Waaay better option then credit cards

$10 for a late payment is very reasonable, a credit card would charge 25% on the TOTAL amount of your credit card bill. Retailers pay similar fees for BNPL as for traditional credit card / debit card payments. Unfair to characterise BNPL as a bad thing, I think it's very helpful for people on a budget and I would say a very high percentage of consumers pay zero fees to use it.

The Real John R.
25 Sep 2021
EVERYONE pays for these schemes

We all pay for existence of these schemes, not just those who use them. All retailers load the price they charge for goods to all consumers to cover the discount they must pay to these companies. The companies do not allow the retailer to offer discounts for cash. And the fees they charge retailers are lots more than banks charge for credit cards. How did this happen????

Ray M.
25 Sep 2021
Show the true cost

Retailers should have to show what they pay in fees so the consumer can see the true cost of the credit. Always ask what the cash cost is. Any good retailer much prefers to get money now from their customer than to have to deal with the 3rd party. I understand some of these entities try to prevent retailer's disclosing the cost the retailer pays (like the credit cards did) but that should simply be illegal.

Your Highness
25 Sep 2021
Afterpay is ripping off consumers

The merchants inevitably must pass on their Afterpay fees and commissions onto their prices, so all consumers are paying a higher price. Even those who don’t use credit are paying more. I like the system retailers use in some countries, where a customer paying by credit card is charged the retailers fees. When I was in Nepal, this was a flat 4%. So if you pay cash, you buy the product 4% cheaper than a customer paying by credit. This is transparent, and fairer for everyone. Obviously, credit card and other companies like Afterpay don’t view this practice joyfully!