As the festive season approaches, many of us are looking for ways to make our Christmas shopping more manageable, especially with the cost of living rising. It's a time when budgets are stretched, wish lists are long, and the pressure to create the perfect holiday atmosphere is high. But there's good news on the horizon for shoppers looking to spruce up their homes without breaking the bank: IKEA has announced a 'huge' payment change that could be a game-changer for many Australian families.

IKEA, the Swedish furniture giant known for its affordable and stylish home furnishings, has decided to roll out a new payment option that could make your Christmas shopping a whole lot easier. The company has introduced Afterpay in stores, joining the ranks of large retailers embracing the 'Buy now, pay later' (BNPL) strategy. This move is set to attract shoppers who are feeling the pinch but still want to make their homes festive and welcoming for the holiday season.

IKEA Australia is ready to welcome customers in during the holidays with their new payment method. Image Credit: Pexels/Alexander Isreb

The BNPL option is becoming increasingly popular, with data from Afterpay indicating that 41 per cent of consumers expect to use these platforms to purchase at least half of their Christmas gifts this year. It's a trend that's hard to ignore, and IKEA is capitalising on it by offering a more convenient shopping experience for its customers.

'Affordability has never been more important to our customers, and now with Afterpay, we can provide even more flexible ways to purchase the home furnishings of their dreams,' said Daniela Altiparmakova, Deputy Digital Manager at IKEA Australia. This sentiment reflects the current economic climate where shoppers are seeking out ways to stretch their dollars further without compromising on quality or style.

The payment method will be available at all ten IKEA stores across the country, as well as online, making it accessible to a wide range of customers. Whether you're looking to update your living room with a new sofa or want to add festive decorations to your home, IKEA's partnership with Afterpay could make it more feasible.

Last Christmas, Australians spent a staggering $5 billion on purchases made with Afterpay, with home and garden stores like Bunnings contributing to that growth. 'Over the past five years, we've seen a 127% increase in Afterpay sales within the home and garden category,' said Katrina Konstas, EVP, Country Manager at Afterpay. This statistic highlights the growing reliance on BNPL services for home improvement and decoration purchases.

In a responsible move, Afterpay introduced a self-regulated spending cap for Australians using the service in September. This feature allows users to set their own limits on spending through Afterpay, helping to prevent overindulgence and encourage financial responsibility. It's a timely addition, considering the average debt owed to the company by Australians was $964 as of September 2024.

While the convenience of BNPL services is undeniable, it's important for shoppers to use them wisely. As with any financial tool, there are risks involved, and it's crucial to understand the terms and conditions to avoid any potential pitfalls, such as late fees or interest charges if payments are not made on time.

Members, as you consider your Christmas shopping plans, think about how IKEA's new payment option could benefit you. Could it help you manage your budget better? Are there items you've been eyeing that are now within reach thanks to Afterpay? Share your thoughts and experiences with us in the comments below!

Key Takeaways

• IKEA has introduced the use of Afterpay in their stores, targeting the Christmas shopping season.
• The move comes as families face financial pressures due to the cost of living, with 41 per cent of people expecting to use buy now, pay later services for holiday shopping.
• IKEA Australia's Deputy Digital Manager highlights the importance of affordability and the added convenience that Afterpay brings to customers.
• Last Christmas, Australians spent $5 billion using Afterpay, with significant growth seen in the home and garden category, where there was a 127% increase in sales over five years.

Remember, the holiday season is about joy and togetherness, not financial stress. With careful planning and smart use of payment options like Afterpay, you can create a festive home environment that brings happiness to you and your loved ones without the worry of a financial hangover in the new year. Happy shopping, and may your holidays be merry, bright, and budget-friendly!

 

[IAN3005]

Where's the catch? Surely interest is payable for late payments. If you've got the cash, well and good. If you're on skid row, then your days are numbered.
How many people go berserk over Christmas and feel 'OBLIGATED' to go out and spend like a drunken sailor, to spend the next 6 or more months trying to pay it back..beats me.

 

[IAN3005]

Where's the catch? Surely interest is payable for late payments. If you've got the cash, well and good. If you're on skid row, then your days are numbered.
How many people go berserk over Christmas and feel 'OBLIGATED' to go out and spend like a drunken sailor, to spend the next 6 or more months trying to pay it back..beats me.

I spend ZERO......not a cent.... I hibernate to come out in February.

 

[DLHM]

I spend ZERO......not a cent.... I hibernate to come out in February.

I only spend what I can afford. My dad was a prime example of spending money he didn’t have (credit cards were his best friends). Destroyed his family. But he’s been gone for over 30 years and I bear no grudges.

We do what we feel is best.

 

[IAN3005]

I only spend what I can afford. My dad was a prime example of spending money he didn’t have (credit cards were his best friends). Destroyed his family. But he’s been gone for over 30 years and I bear no grudges.

We do what we feel is best.

I too depend on the credit card.... rather the money earns me interest till the due date of the credit card comes due.... all automated thanks to modern technology... everything is financially is automated.... sit back and earn $650 to $700 a month

 

[DLHM]

You @IAN3005, and I use our credit cards responsibly. I venture to say most do (?), or hopefully so. I pity the ones who don’t.

 

[IAN3005]

You @IAN3005, and I use our credit cards responsibly. I venture to say most do (?), or hopefully so. I pity the ones who don’t.

It would be interesting to see how much is owing 2018 to now, what the payments are and how the interest rates have risen
Now you only get 30 days of credit whereas in 2018 it was 50 days.. fallen by almost 50%.