Group warns against ‘very dangerous trap’ for customers as supermarket adopts Afterpay

We've been hearing a lot about the wonders of 'Buy Now, Pay Later' (BNPL) schemes lately—but even though the service looks like an excellent way to save some money on groceries up front, a welfare group wants to make sure consumers don't end up in a bad place further down the track.


You see, South Australian-based grocer Drakes—which also operates in Toowoomba, Brisbane and Gladstone—recently introduced an Afterpay option at more than 60 stores.

The payment method allows items like groceries to be paid off in instalments and charges late fees for missed payments.


Screenshot 2023-09-28 130549.png
South Australian-based grocer Drakes recently introduced an Afterpay option at more than 60 stores. Credit: Drakes Supermarkets/Facebook


The retailer claimed they had reservations about Afterpay initially, but they’ve seen a customer demand for its service.

Drakes Supermarkets Director John-Paul Drake said: ‘We've introduced Afterpay across the whole network, so in South Australia and Queensland.’


‘[At first] I looked at Afterpay like, “Well, if you're using Afterpay, that means you're struggling to pay for something,” and when we started to actually look into it, that wasn't the case at all,’ he explained.

‘It's not saying that people don't have money. We had so many customers asking us [if] we accept Afterpay, so we then investigated it, and we thought, “OK, well, this is OK for us to roll out.”’

On the surface, it seems like a great way to minimise upfront costs while shopping. Deals like are also seen as a modern form of lay-by.


If a payment deadline isn't met, late fees of up to $10 could be charged, placing customers in a risky situation, according to the South Australian Council of Social Service (SACOSS).


29663539248_2ffa92ff99_k.jpg
South Australian Council of Social Service warned that Afterpay service could ensnare consumers in a dangerous debt trap. Credit: Mike Cohen/Flickr


‘They've been largely unregulated as provision mechanisms for people to get debt, and in that context, they don't actually get the scrutiny and the attention and don't have the transparency, that we think is really appropriate,’ SACOSS CEO Ross Womersley claimed.

He added: ‘That's much more interest than people are paying on other credit systems if you're using a credit card, and so it's a very, very dangerous debt trap to people to get captured by.’


Due to the nature of Afterpay, Mr Womersley urged Drakes Supermarkets to reconsider its implementation.

‘Enticing people to use credit to do that is all well and good for anybody that can afford to meet their repayments when they fall due,’ he said.

‘But in this instance, we think that this is just an enticement that is just completely unnecessary, and in fact, we'd be really encouraging Drakes to really walk away from continuing to offer these types of products.’

Other businesses like Western Australian supermarket chain Spudshed and discount retailer Cheap as Chips use Afterpay.


As for Drakes, they assured that they were not receiving money from the service. In fact, they had to pay ‘a percentage’ of their transactions that went through the system.

‘Merchants offering Afterpay’s pay-in-four products will pay a merchant fee,’ a spokesperson for Drakes stated.

‘Shoppers have been using credit cards for these purposes for decades—and this is an interest-free (when paid on time) alternative,’ they added.

The spokesperson also claimed that Afterpay service demonstrated ‘strong consumer outcomes’ in the second quarter of 2023, with 98 per cent of purchases not incurring late fees and 95 per cent of instalments paid on time’.

‘We don't let customers keep spending if they are behind on payments,’ the spokesperson shared.

‘We cap our late fees, and we don't allow customers to revolve in debt.’


In May, we reported that the Australian government had implemented stricter regulations for Buy Now, Pay Later (BNPL) services, treating them as credit products. This is in response to concerns about the risks posed by BNPL, such as high levels of debt and difficulty in managing repayments.

Our members have mixed reactions—while some use the service, some prefer to do their transactions outright.

‘I have never used it. If I can't pay, I do not buy,’ member @Jest wrote.

Member @Trudi shared: ‘I am also a retired accountant. I have two no-fee credit cards used to pay for nearly everything I purchase, and both cards are paid in full each month. If any business is charging fees for credit/debit cards, I insert the card and select “savings” to pay.’

‘As for buy now/pay later, I never have and never will use those,’ the member added.


Meanwhile, other members benefit from the payment scheme. As member @Freeman27 put it: ‘I often avail myself of the PayPal service of four payments, but I never purchase anything through them unless I have the full amount already available. I have found it very helpful for larger purchases.’

‘I use Afterpay a Pay in 4 all the time—it evens out costs that come in peaks and troughs and makes me feel more in control- having said that, I always buy things I really need and that I know I can afford, one of the benefits of a fixed income,’ member @DrivingGirl commented.

‘I have never defaulted or been late as I regard this as a privilege, not a right, and it can be taken away at the drop of a hat. I have earned that privilege by being responsible and diligent,’ they continued.

Key Takeaways
  • Supermarket chain Drakes has introduced Afterpay as a payment option across its stores.
  • The move has been criticised by social welfare group SACOSS, who warn it could lead to consumers falling into a 'dangerous debt trap'.
  • Drakes Supermarkets director John-Paul Drake defended the decision, saying demand was driven by customers and likened Afterpay to a credit card.
  • Afterpay insists its business model is built on receiving fees from merchants rather than from consumers via debt defaults.


What’s your take on this story, members? Should Drakes Supermarket continue adding the Afterpay service to their stores? Let us know in the comments below!
 
Sponsored
Life doesn't work that way and sometimes we need to get things unexpectedly. It is easier to judge I guess than to consider other people's circumstances **shrugs**

Did you ever lay-by things? That is EXACTLY what BNPL is, except you get the goods straight away.
if People saved they would have money on hand for their unexpected purchased items , problem they just live day today. I can do it on a pension. I don’t judge 👩‍⚖️ anyone all I’m saying people should learn to save makes life a lot easier how hard is that.?
 
Then you would be a lone wolf. I don't know anyone in our generation who has NEVER done a lay-by.
My parents taught Me not to buy if you don’t have money, always save first. And I have followed that my whole life as my family do .
 
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Well now you have met a lone wolf as you called me ,not everybody grew up with lay-bys .
 
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We've been hearing a lot about the wonders of 'Buy Now, Pay Later' (BNPL) schemes lately—but even though the service looks like an excellent way to save some money on groceries up front, a welfare group wants to make sure consumers don't end up in a bad place further down the track.


You see, South Australian-based grocer Drakes—which also operates in Toowoomba, Brisbane and Gladstone—recently introduced an Afterpay option at more than 60 stores.

The payment method allows items like groceries to be paid off in instalments and charges late fees for missed payments.


View attachment 31060
South Australian-based grocer Drakes recently introduced an Afterpay option at more than 60 stores. Credit: Drakes Supermarkets/Facebook


The retailer claimed they had reservations about Afterpay initially, but they’ve seen a customer demand for its service.

Drakes Supermarkets Director John-Paul Drake said: ‘We've introduced Afterpay across the whole network, so in South Australia and Queensland.’


‘[At first] I looked at Afterpay like, “Well, if you're using Afterpay, that means you're struggling to pay for something,” and when we started to actually look into it, that wasn't the case at all,’ he explained.

‘It's not saying that people don't have money. We had so many customers asking us [if] we accept Afterpay, so we then investigated it, and we thought, “OK, well, this is OK for us to roll out.”’

On the surface, it seems like a great way to minimise upfront costs while shopping. Deals like are also seen as a modern form of lay-by.


If a payment deadline isn't met, late fees of up to $10 could be charged, placing customers in a risky situation, according to the South Australian Council of Social Service (SACOSS).


View attachment 31061
South Australian Council of Social Service warned that Afterpay service could ensnare consumers in a dangerous debt trap. Credit: Mike Cohen/Flickr


‘They've been largely unregulated as provision mechanisms for people to get debt, and in that context, they don't actually get the scrutiny and the attention and don't have the transparency, that we think is really appropriate,’ SACOSS CEO Ross Womersley claimed.

He added: ‘That's much more interest than people are paying on other credit systems if you're using a credit card, and so it's a very, very dangerous debt trap to people to get captured by.’


Due to the nature of Afterpay, Mr Womersley urged Drakes Supermarkets to reconsider its implementation.

‘Enticing people to use credit to do that is all well and good for anybody that can afford to meet their repayments when they fall due,’ he said.

‘But in this instance, we think that this is just an enticement that is just completely unnecessary, and in fact, we'd be really encouraging Drakes to really walk away from continuing to offer these types of products.’

Other businesses like Western Australian supermarket chain Spudshed and discount retailer Cheap as Chips use Afterpay.


As for Drakes, they assured that they were not receiving money from the service. In fact, they had to pay ‘a percentage’ of their transactions that went through the system.

‘Merchants offering Afterpay’s pay-in-four products will pay a merchant fee,’ a spokesperson for Drakes stated.

‘Shoppers have been using credit cards for these purposes for decades—and this is an interest-free (when paid on time) alternative,’ they added.

The spokesperson also claimed that Afterpay service demonstrated ‘strong consumer outcomes’ in the second quarter of 2023, with 98 per cent of purchases not incurring late fees and 95 per cent of instalments paid on time’.

‘We don't let customers keep spending if they are behind on payments,’ the spokesperson shared.

‘We cap our late fees, and we don't allow customers to revolve in debt.’


In May, we reported that the Australian government had implemented stricter regulations for Buy Now, Pay Later (BNPL) services, treating them as credit products. This is in response to concerns about the risks posed by BNPL, such as high levels of debt and difficulty in managing repayments.

Our members have mixed reactions—while some use the service, some prefer to do their transactions outright.

‘I have never used it. If I can't pay, I do not buy,’ member @Jest wrote.

Member @Trudi shared: ‘I am also a retired accountant. I have two no-fee credit cards used to pay for nearly everything I purchase, and both cards are paid in full each month. If any business is charging fees for credit/debit cards, I insert the card and select “savings” to pay.’

‘As for buy now/pay later, I never have and never will use those,’ the member added.


Meanwhile, other members benefit from the payment scheme. As member @Freeman27 put it: ‘I often avail myself of the PayPal service of four payments, but I never purchase anything through them unless I have the full amount already available. I have found it very helpful for larger purchases.’

‘I use Afterpay a Pay in 4 all the time—it evens out costs that come in peaks and troughs and makes me feel more in control- having said that, I always buy things I really need and that I know I can afford, one of the benefits of a fixed income,’ member @DrivingGirl commented.

‘I have never defaulted or been late as I regard this as a privilege, not a right, and it can be taken away at the drop of a hat. I have earned that privilege by being responsible and diligent,’ they continued.

Key Takeaways

  • Supermarket chain Drakes has introduced Afterpay as a payment option across its stores.
  • The move has been criticised by social welfare group SACOSS, who warn it could lead to consumers falling into a 'dangerous debt trap'.
  • Drakes Supermarkets director John-Paul Drake defended the decision, saying demand was driven by customers and likened Afterpay to a credit card.
  • Afterpay insists its business model is built on receiving fees from merchants rather than from consumers via debt defaults.


What’s your take on this story, members? Should Drakes Supermarket continue adding the Afterpay service to their stores? Let us know in the comments below!
What are the charges if any?
 
We've been hearing a lot about the wonders of 'Buy Now, Pay Later' (BNPL) schemes lately—but even though the service looks like an excellent way to save some money on groceries up front, a welfare group wants to make sure consumers don't end up in a bad place further down the track.


You see, South Australian-based grocer Drakes—which also operates in Toowoomba, Brisbane and Gladstone—recently introduced an Afterpay option at more than 60 stores.

The payment method allows items like groceries to be paid off in instalments and charges late fees for missed payments.


View attachment 31060
South Australian-based grocer Drakes recently introduced an Afterpay option at more than 60 stores. Credit: Drakes Supermarkets/Facebook


The retailer claimed they had reservations about Afterpay initially, but they’ve seen a customer demand for its service.

Drakes Supermarkets Director John-Paul Drake said: ‘We've introduced Afterpay across the whole network, so in South Australia and Queensland.’


‘[At first] I looked at Afterpay like, “Well, if you're using Afterpay, that means you're struggling to pay for something,” and when we started to actually look into it, that wasn't the case at all,’ he explained.

‘It's not saying that people don't have money. We had so many customers asking us [if] we accept Afterpay, so we then investigated it, and we thought, “OK, well, this is OK for us to roll out.”’

On the surface, it seems like a great way to minimise upfront costs while shopping. Deals like are also seen as a modern form of lay-by.


If a payment deadline isn't met, late fees of up to $10 could be charged, placing customers in a risky situation, according to the South Australian Council of Social Service (SACOSS).


View attachment 31061
South Australian Council of Social Service warned that Afterpay service could ensnare consumers in a dangerous debt trap. Credit: Mike Cohen/Flickr


‘They've been largely unregulated as provision mechanisms for people to get debt, and in that context, they don't actually get the scrutiny and the attention and don't have the transparency, that we think is really appropriate,’ SACOSS CEO Ross Womersley claimed.

He added: ‘That's much more interest than people are paying on other credit systems if you're using a credit card, and so it's a very, very dangerous debt trap to people to get captured by.’


Due to the nature of Afterpay, Mr Womersley urged Drakes Supermarkets to reconsider its implementation.

‘Enticing people to use credit to do that is all well and good for anybody that can afford to meet their repayments when they fall due,’ he said.

‘But in this instance, we think that this is just an enticement that is just completely unnecessary, and in fact, we'd be really encouraging Drakes to really walk away from continuing to offer these types of products.’

Other businesses like Western Australian supermarket chain Spudshed and discount retailer Cheap as Chips use Afterpay.


As for Drakes, they assured that they were not receiving money from the service. In fact, they had to pay ‘a percentage’ of their transactions that went through the system.

‘Merchants offering Afterpay’s pay-in-four products will pay a merchant fee,’ a spokesperson for Drakes stated.

‘Shoppers have been using credit cards for these purposes for decades—and this is an interest-free (when paid on time) alternative,’ they added.

The spokesperson also claimed that Afterpay service demonstrated ‘strong consumer outcomes’ in the second quarter of 2023, with 98 per cent of purchases not incurring late fees and 95 per cent of instalments paid on time’.

‘We don't let customers keep spending if they are behind on payments,’ the spokesperson shared.

‘We cap our late fees, and we don't allow customers to revolve in debt.’


In May, we reported that the Australian government had implemented stricter regulations for Buy Now, Pay Later (BNPL) services, treating them as credit products. This is in response to concerns about the risks posed by BNPL, such as high levels of debt and difficulty in managing repayments.

Our members have mixed reactions—while some use the service, some prefer to do their transactions outright.

‘I have never used it. If I can't pay, I do not buy,’ member @Jest wrote.

Member @Trudi shared: ‘I am also a retired accountant. I have two no-fee credit cards used to pay for nearly everything I purchase, and both cards are paid in full each month. If any business is charging fees for credit/debit cards, I insert the card and select “savings” to pay.’

‘As for buy now/pay later, I never have and never will use those,’ the member added.


Meanwhile, other members benefit from the payment scheme. As member @Freeman27 put it: ‘I often avail myself of the PayPal service of four payments, but I never purchase anything through them unless I have the full amount already available. I have found it very helpful for larger purchases.’

‘I use Afterpay a Pay in 4 all the time—it evens out costs that come in peaks and troughs and makes me feel more in control- having said that, I always buy things I really need and that I know I can afford, one of the benefits of a fixed income,’ member @DrivingGirl commented.

‘I have never defaulted or been late as I regard this as a privilege, not a right, and it can be taken away at the drop of a hat. I have earned that privilege by being responsible and diligent,’ they continued.

Key Takeaways

  • Supermarket chain Drakes has introduced Afterpay as a payment option across its stores.
  • The move has been criticised by social welfare group SACOSS, who warn it could lead to consumers falling into a 'dangerous debt trap'.
  • Drakes Supermarkets director John-Paul Drake defended the decision, saying demand was driven by customers and likened Afterpay to a credit card.
  • Afterpay insists its business model is built on receiving fees from merchants rather than from consumers via debt defaults.


What’s your take on this story, members? Should Drakes Supermarket continue adding the Afterpay service to their stores? Let us know in the comments below!
Other means of getting people to buy what they don't need..... DEBT
 
I love AfterPay! I have used it for years, especially when the sales are on and I NEED to buy something and it is available at a fabulous special or low price! I buy it on AfterPay and pay it all off before any interest accrues - very simple, very convenient for low-income earners or those whose money is tied up elsewhere, and wonderful if you do not go stupid. I have NEVER paid interest with Afterpay and to know that Drakes are offering the service is wonderful for those who may need to purchase something and not have the ready cash on hand. As long as you are responsible and aware of the outlay, there are no problems. It is only a worry if you go crazy and spend beyond your means that you get into trouble.
 
if People saved they would have money on hand for their unexpected purchased items , problem they just live day today. I can do it on a pension. I don’t judge 👩‍⚖️ anyone all I’m saying people should learn to save makes life a lot easier how hard is that.?
Emergencies happen and if you are on a limited income, in the private rental market and not able to squirrel away your pension you will not always have the money on hand. It has NOTHING to do with someon’s spending habits. You may be in a fortunate position but you are not aware of why others may not be and through no fault of their own.
 
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You see young people with thousands of dollars worth of tattoos come up and say "Gimme a couple of dollars or a smoke". Not ask....a demand. You should've thought about that before you covered yourself in ink!
Or hold up a homeless cardboard sign while smoking or using their mobile phone.... and I know I'm old and have different standards, but there it is.
 
We've been hearing a lot about the wonders of 'Buy Now, Pay Later' (BNPL) schemes lately—but even though the service looks like an excellent way to save some money on groceries up front, a welfare group wants to make sure consumers don't end up in a bad place further down the track.


You see, South Australian-based grocer Drakes—which also operates in Toowoomba, Brisbane and Gladstone—recently introduced an Afterpay option at more than 60 stores.

The payment method allows items like groceries to be paid off in instalments and charges late fees for missed payments.


View attachment 31060
South Australian-based grocer Drakes recently introduced an Afterpay option at more than 60 stores. Credit: Drakes Supermarkets/Facebook


The retailer claimed they had reservations about Afterpay initially, but they’ve seen a customer demand for its service.

Drakes Supermarkets Director John-Paul Drake said: ‘We've introduced Afterpay across the whole network, so in South Australia and Queensland.’


‘[At first] I looked at Afterpay like, “Well, if you're using Afterpay, that means you're struggling to pay for something,” and when we started to actually look into it, that wasn't the case at all,’ he explained.

‘It's not saying that people don't have money. We had so many customers asking us [if] we accept Afterpay, so we then investigated it, and we thought, “OK, well, this is OK for us to roll out.”’

On the surface, it seems like a great way to minimise upfront costs while shopping. Deals like are also seen as a modern form of lay-by.


If a payment deadline isn't met, late fees of up to $10 could be charged, placing customers in a risky situation, according to the South Australian Council of Social Service (SACOSS).


View attachment 31061
South Australian Council of Social Service warned that Afterpay service could ensnare consumers in a dangerous debt trap. Credit: Mike Cohen/Flickr


‘They've been largely unregulated as provision mechanisms for people to get debt, and in that context, they don't actually get the scrutiny and the attention and don't have the transparency, that we think is really appropriate,’ SACOSS CEO Ross Womersley claimed.

He added: ‘That's much more interest than people are paying on other credit systems if you're using a credit card, and so it's a very, very dangerous debt trap to people to get captured by.’


Due to the nature of Afterpay, Mr Womersley urged Drakes Supermarkets to reconsider its implementation.

‘Enticing people to use credit to do that is all well and good for anybody that can afford to meet their repayments when they fall due,’ he said.

‘But in this instance, we think that this is just an enticement that is just completely unnecessary, and in fact, we'd be really encouraging Drakes to really walk away from continuing to offer these types of products.’

Other businesses like Western Australian supermarket chain Spudshed and discount retailer Cheap as Chips use Afterpay.


As for Drakes, they assured that they were not receiving money from the service. In fact, they had to pay ‘a percentage’ of their transactions that went through the system.

‘Merchants offering Afterpay’s pay-in-four products will pay a merchant fee,’ a spokesperson for Drakes stated.

‘Shoppers have been using credit cards for these purposes for decades—and this is an interest-free (when paid on time) alternative,’ they added.

The spokesperson also claimed that Afterpay service demonstrated ‘strong consumer outcomes’ in the second quarter of 2023, with 98 per cent of purchases not incurring late fees and 95 per cent of instalments paid on time’.

‘We don't let customers keep spending if they are behind on payments,’ the spokesperson shared.

‘We cap our late fees, and we don't allow customers to revolve in debt.’


In May, we reported that the Australian government had implemented stricter regulations for Buy Now, Pay Later (BNPL) services, treating them as credit products. This is in response to concerns about the risks posed by BNPL, such as high levels of debt and difficulty in managing repayments.

Our members have mixed reactions—while some use the service, some prefer to do their transactions outright.

‘I have never used it. If I can't pay, I do not buy,’ member @Jest wrote.

Member @Trudi shared: ‘I am also a retired accountant. I have two no-fee credit cards used to pay for nearly everything I purchase, and both cards are paid in full each month. If any business is charging fees for credit/debit cards, I insert the card and select “savings” to pay.’

‘As for buy now/pay later, I never have and never will use those,’ the member added.


Meanwhile, other members benefit from the payment scheme. As member @Freeman27 put it: ‘I often avail myself of the PayPal service of four payments, but I never purchase anything through them unless I have the full amount already available. I have found it very helpful for larger purchases.’

‘I use Afterpay a Pay in 4 all the time—it evens out costs that come in peaks and troughs and makes me feel more in control- having said that, I always buy things I really need and that I know I can afford, one of the benefits of a fixed income,’ member @DrivingGirl commented.

‘I have never defaulted or been late as I regard this as a privilege, not a right, and it can be taken away at the drop of a hat. I have earned that privilege by being responsible and diligent,’ they continued.

Key Takeaways

  • Supermarket chain Drakes has introduced Afterpay as a payment option across its stores.
  • The move has been criticised by social welfare group SACOSS, who warn it could lead to consumers falling into a 'dangerous debt trap'.
  • Drakes Supermarkets director John-Paul Drake defended the decision, saying demand was driven by customers and likened Afterpay to a credit card.
  • Afterpay insists its business model is built on receiving fees from merchants rather than from consumers via debt defaults.


What’s your take on this story, members? Should Drakes Supermarket continue adding the Afterpay service to their stores? Let us know in the comments below!
I'm sure i've seen this on either Woollies or Coles checkouts under other payment options - an area i use when splitting payments between cards & cash.
It's terrible and i'd never use Afterpay or the ones like it.
Although i do use Paypal's pay-in-4 at times for online purchases between pension days sometimes, least there's no fees or hidden costs with it.
 
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Emergencies happen and if you are on a limited income, in the private rental market and not able to squirrel away your pension you will not always have the money on hand. It has NOTHING to do with someon’s spending habits. You may be in a fortunate position but you are not aware of why others may not be and through no fault of their own.
As I have said before don’t judge me ,you don’t know me ,and I don’t for your information squirrel my pension away I have learnt to budget ,and a pension is a limited income .
 
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We've been hearing a lot about the wonders of 'Buy Now, Pay Later' (BNPL) schemes lately—but even though the service looks like an excellent way to save some money on groceries up front, a welfare group wants to make sure consumers don't end up in a bad place further down the track.


You see, South Australian-based grocer Drakes—which also operates in Toowoomba, Brisbane and Gladstone—recently introduced an Afterpay option at more than 60 stores.

The payment method allows items like groceries to be paid off in instalments and charges late fees for missed payments.


View attachment 31060
South Australian-based grocer Drakes recently introduced an Afterpay option at more than 60 stores. Credit: Drakes Supermarkets/Facebook


The retailer claimed they had reservations about Afterpay initially, but they’ve seen a customer demand for its service.

Drakes Supermarkets Director John-Paul Drake said: ‘We've introduced Afterpay across the whole network, so in South Australia and Queensland.’


‘[At first] I looked at Afterpay like, “Well, if you're using Afterpay, that means you're struggling to pay for something,” and when we started to actually look into it, that wasn't the case at all,’ he explained.

‘It's not saying that people don't have money. We had so many customers asking us [if] we accept Afterpay, so we then investigated it, and we thought, “OK, well, this is OK for us to roll out.”’

On the surface, it seems like a great way to minimise upfront costs while shopping. Deals like are also seen as a modern form of lay-by.


If a payment deadline isn't met, late fees of up to $10 could be charged, placing customers in a risky situation, according to the South Australian Council of Social Service (SACOSS).


View attachment 31061
South Australian Council of Social Service warned that Afterpay service could ensnare consumers in a dangerous debt trap. Credit: Mike Cohen/Flickr


‘They've been largely unregulated as provision mechanisms for people to get debt, and in that context, they don't actually get the scrutiny and the attention and don't have the transparency, that we think is really appropriate,’ SACOSS CEO Ross Womersley claimed.

He added: ‘That's much more interest than people are paying on other credit systems if you're using a credit card, and so it's a very, very dangerous debt trap to people to get captured by.’


Due to the nature of Afterpay, Mr Womersley urged Drakes Supermarkets to reconsider its implementation.

‘Enticing people to use credit to do that is all well and good for anybody that can afford to meet their repayments when they fall due,’ he said.

‘But in this instance, we think that this is just an enticement that is just completely unnecessary, and in fact, we'd be really encouraging Drakes to really walk away from continuing to offer these types of products.’

Other businesses like Western Australian supermarket chain Spudshed and discount retailer Cheap as Chips use Afterpay.


As for Drakes, they assured that they were not receiving money from the service. In fact, they had to pay ‘a percentage’ of their transactions that went through the system.

‘Merchants offering Afterpay’s pay-in-four products will pay a merchant fee,’ a spokesperson for Drakes stated.

‘Shoppers have been using credit cards for these purposes for decades—and this is an interest-free (when paid on time) alternative,’ they added.

The spokesperson also claimed that Afterpay service demonstrated ‘strong consumer outcomes’ in the second quarter of 2023, with 98 per cent of purchases not incurring late fees and 95 per cent of instalments paid on time’.

‘We don't let customers keep spending if they are behind on payments,’ the spokesperson shared.

‘We cap our late fees, and we don't allow customers to revolve in debt.’


In May, we reported that the Australian government had implemented stricter regulations for Buy Now, Pay Later (BNPL) services, treating them as credit products. This is in response to concerns about the risks posed by BNPL, such as high levels of debt and difficulty in managing repayments.

Our members have mixed reactions—while some use the service, some prefer to do their transactions outright.

‘I have never used it. If I can't pay, I do not buy,’ member @Jest wrote.

Member @Trudi shared: ‘I am also a retired accountant. I have two no-fee credit cards used to pay for nearly everything I purchase, and both cards are paid in full each month. If any business is charging fees for credit/debit cards, I insert the card and select “savings” to pay.’

‘As for buy now/pay later, I never have and never will use those,’ the member added.


Meanwhile, other members benefit from the payment scheme. As member @Freeman27 put it: ‘I often avail myself of the PayPal service of four payments, but I never purchase anything through them unless I have the full amount already available. I have found it very helpful for larger purchases.’

‘I use Afterpay a Pay in 4 all the time—it evens out costs that come in peaks and troughs and makes me feel more in control- having said that, I always buy things I really need and that I know I can afford, one of the benefits of a fixed income,’ member @DrivingGirl commented.

‘I have never defaulted or been late as I regard this as a privilege, not a right, and it can be taken away at the drop of a hat. I have earned that privilege by being responsible and diligent,’ they continued.

Key Takeaways

  • Supermarket chain Drakes has introduced Afterpay as a payment option across its stores.
  • The move has been criticised by social welfare group SACOSS, who warn it could lead to consumers falling into a 'dangerous debt trap'.
  • Drakes Supermarkets director John-Paul Drake defended the decision, saying demand was driven by customers and likened Afterpay to a credit card.
  • Afterpay insists its business model is built on receiving fees from merchants rather than from consumers via debt defaults.


What’s your take on this story, members? Should Drakes Supermarket continue adding the Afterpay service to their stores? Let us know in the comments below!
I'm all for it. I've been iusing Afterpay since its inception and because I budget ahead of time I know whether I can afford to pay for what I've bought consistently over the 4 pay dates. I really wish governments etc would stop nannying people and let then make their own decisions as the adults we are. Also Afterpay is extremely understanding if people do get into trouble. Someone I know well contacted them and explained their situation and they were able to suspend their account and make a payment plan until they were paid up. Be responsible for your own money and you shouldn't have issues.
 
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News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else

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  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
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