What this Sydney bloke criticised will have you checking your bank balance twice

A single video ignited a fiery national debate. A Sydney man criticised someone for splitting a $200 shoe purchase into instalments. The clip quickly went viral, dividing opinions across Australia.

The controversy began when the man filmed himself expressing disbelief at witnessing a young customer use Afterpay. 'If you need to use Afterpay to buy a pair of shoes, you really need to reassess your life,' he said, suggesting people should simply use their savings instead.

Social media responses poured in immediately, with many defending BNPL services. 'I have like $30,000 in savings and I'll still use Afterpay to buy shoes,' one user said, while another sarcastically noted, 'Nice, let's all use credit cards at 17 per cent interest.'

The viral moment highlighted the complex reality of buy now, pay later (BNPL) services in Australia. While some use them for convenience, the data suggests usage patterns are shifting.

A survey from July 2024 revealed that 43 per cent of Australians had used BNPL at least once every six months, down from 49 per cent in 2022. Average debt among users has also decreased, with July 2023 figures showing $1,391 and September 2024 dropping to $964.

The BNPL market continues to grow despite these shifts. Revenue has expanded at an average rate of 13.4 per cent over the past five years, reaching $1.4 billion in 2024. Yet BNPL payments accounted for less than 2 per cent of total debit and credit card transactions in 2020.

Who’s using BNPL

People choose BNPL for convenience and interest-free payments. In July 2024, 51 per cent cited ease of sign-up, another 51 per cent highlighted no interest, and 33 per cent preferred it to avoid credit card debt.

Hidden costs exist, however. BNPL providers charge merchants between four to seven per cent per transaction, higher than the 1–1.5 per cent for credit cards, ultimately passed on to consumers.

Regulatory changes are imminent. From 10 June 2025, BNPL providers must hold Australian credit licences and comply with responsible lending obligations, including affordability checks and potential late fee caps.

Late payments are a concern. In 2020, five per cent of Australians reported paying BNPL late fees; this rose to nine per cent by 2022. Zip Co and Afterpay both recorded increases in bad debts and expected credit losses during this period.

Financial experts note that BNPL can be a useful budgeting tool if used responsibly, but poor money management and accumulated late fees remain risks. 'The people who most often use these services are often bad with money and are the ones who pay all the late fees,' a financial literacy advocate stated.

Smart strategies for using BNPL include tracking payments, limiting concurrent agreements, budgeting for the full amount, reading the fine print, and considering alternatives like saving or low-interest credit cards.

The Sydney man's frustration reflected wider economic anxieties among Australians, including job competition and the financial pressures of everyday living. BNPL growth has sparked debates on household debt, credit risk, and the need for stricter regulations.

Whether you agree with the critic or not, his video sparked a vital discussion on spending habits, financial responsibility, and consumer debt in Australia as regulations evolve in 2025.

What's your take on the BNPL debate—do you use these services as a budgeting tool, or do they encourage overspending?