Buy now, pay later (BNPL) services like Afterpay and Zip have exploded in popularity recently. Their success is built on allowing shoppers to split purchase payments into multiple instalments with no upfront costs.

But consumer advocates warn these services can also lead customers into debt traps.

Now, Afterpay has launched a paid subscription service called Afterpay Plus, which makes it even easier to access loans.

What is Afterpay Plus, and how does it work?

Afterpay Plus costs $10 per month and links your Afterpay account to payment services like Apple Pay, Google Pay or Samsung Pay.

This means Afterpay users can get instant access to an Afterpay loan simply by tapping their phone anytime with limited checks on whether it is appropriate for their financial situation and no oversight over whether the user is paying for essentials.

Afterpay Plus is a monthly subscription service that links Afterpay to other payment services. Credit: Afterpay

According to financial counsellors and consumer rights groups, the new product allows Afterpay to dodge regulations and could tempt users into bad financial habits.

Afterpay claims the paid subscription model is currently invitation-only and aimed at their most engaged users for now.

‘Invitation to Afterpay Plus is limited and considers credit eligibility criteria,’ according to the Afterpay website.

However, advocates argued making BNPL credit even more seamless is concerning.

'Afterpay Plus takes poorly regulated loans, combines it with a costly subscription model, and allows people to sign up for a new loan just by swiping their phone at the checkout,' said Andy Kelly, Head of Campaigns and Mobilisation at CHOICE.

CEO of Financial Counselling Australia, Fiona Guthrie, said Afterpay Plus raises red flags because it could tempt even careful spenders into bad habits.

‘I guess the more seamless it becomes, the less people kind of stop and think about it as a product and taking out a loan. People don't think of it as credit, generally, but you're using someone else's money,’ she explained.

Sally Jungwirth, a Financial Counselor at Consumer Action Law Centre, takes calls from struggling Australians through the National Debt Helpline. She shared that BNPL services like Afterpay are often used by people who can’t get loans from banks and fall into debt traps.

‘A lot of clients don't know about alternatives like no-interest loans. You know, these are people who aren't able to access conventional credit because they wouldn't meet the responsible lending criteria, so they turn to BNPL,’ she revealed.

Afterpay Plus links the user’s account to payment services like Apple Pay, Google Pay or Samsung Pay. Credit: Blake Wisz/Unsplash

Consumer advocates also pointed out that the Afterpay Plus terms state if you unsubscribe from the $10 per month service, you can’t sign back up again for 12 months. This makes people reluctant to stop payments.

Tom Abourizk from the Consumer Action Law Centre believes this requirement is deliberately designed to avoid regulation.

However, Afterpay shared that their 12-month break is ‘in alignment with the current BNPL regulatory framework and its requirements’.

'Like all BNPL products, Afterpay Plus is designed to fall within an exemption to the definition of credit. Under this loophole, a provider can only charge fees on one credit contract within 12 months,' Mr Abourizk said.

'We have been telling Afterpay for years that we are seeing people use their product to pay for essentials. It is concerning that they have made this even easier with Afterpay Plus while still going to lengths to avoid the consumer safeguards in the credit law,' he added.

Calls to close BNPL regulation loopholes

The government has announced upcoming reforms to the BNPL sector, including requiring responsible lending checks. But the exact details are still being worked out.

Mr Kelly from CHOICE argued that Afterpay Plus proves the need for air-tight regulations.

'It's crucial that any new regulations to rein in buy now, pay later providers include safe lending obligations, including a requirement to verify income before approving a loan,' he explained.

As for consumers, experts suggest being cautious with services like Afterpay Plus:

Tip

If you need help managing debts or bills, contact the National Debt Helpline at 1800 007 007 for free, confidential and independent information and advice.

Key Takeaways

• Afterpay has introduced a new service, Afterpay Plus, that links with Apple Pay, Google Pay, and Samsung Pay, providing easy access to instant loans.
  
• Consumer advocacy groups are raising concerns about Afterpay Plus, stating it may worsen financial situations for users by enabling too easy access to credit.
  
• People who unsubscribe from Afterpay Plus will be banned from using the service for 12 months, a stipulation being criticised as a deterrent from cancelling.
  
• Advocacy groups are urging reforms and new regulations, including safe lending obligations, as the BNPL sector lacks consumer protections.
  

Members, have you used BNPL services like Afterpay? What has your experience been? Let us know in the comments below.

 

[Gsr]

So many people where I work use these credit services that I’m sure there would be a lot who can’t make the repayments and incur further debt. Even older people are using them. Young people don’t realise this is a credit service that counts when you want to apply for any sort of loan, it affects their credit rating if they default.

 

[Petra]

All pay later things are bad .... like credit cards too ... thanks but no thanks.

 

[mylittletibbies]

These services are disaster for poor money managers. If you can't afford to pay for it up front then you can't afford it, full stop.
The old layby service was a much better option, at least you didn't get the goods until they were paid for.
It's the same as people who take off overseas for holidays, on their credit card. How stupid can you get, the holiday is over and you're paying it off for years, along with the interest.
Tried to explain this to a family member who shops Boxing Day specials, Flash sales, etc on her credit
card, thinking she is getting a bargain.
She only pays back the minimum payment each month, the goods end up costing her 3 or 4 times more than the before sale price. Can't get it thru her thick skull. This generation just want it all and NOW.

 

[Sheenagh]

Buy now, pay later (BNPL) services like Afterpay and Zip have exploded in popularity recently. Their success is built on allowing shoppers to split purchase payments into multiple instalments with no upfront costs.

But consumer advocates warn these services can also lead customers into debt traps.

Now, Afterpay has launched a paid subscription service called Afterpay Plus, which makes it even easier to access loans.

What is Afterpay Plus, and how does it work?

Afterpay Plus costs $10 per month and links your Afterpay account to payment services like Apple Pay, Google Pay or Samsung Pay.

This means Afterpay users can get instant access to an Afterpay loan simply by tapping their phone anytime with limited checks on whether it is appropriate for their financial situation and no oversight over whether the user is paying for essentials.

View attachment 32984

Afterpay Plus is a monthly subscription service that links Afterpay to other payment services. Credit: Afterpay

According to financial counsellors and consumer rights groups, the new product allows Afterpay to dodge regulations and could tempt users into bad financial habits.

Afterpay claims the paid subscription model is currently invitation-only and aimed at their most engaged users for now.

‘Invitation to Afterpay Plus is limited and considers credit eligibility criteria,’ according to the Afterpay website.

However, advocates argued making BNPL credit even more seamless is concerning.

'Afterpay Plus takes poorly regulated loans, combines it with a costly subscription model, and allows people to sign up for a new loan just by swiping their phone at the checkout,' said Andy Kelly, Head of Campaigns and Mobilisation at CHOICE.

CEO of Financial Counselling Australia, Fiona Guthrie, said Afterpay Plus raises red flags because it could tempt even careful spenders into bad habits.

‘I guess the more seamless it becomes, the less people kind of stop and think about it as a product and taking out a loan. People don't think of it as credit, generally, but you're using someone else's money,’ she explained.

Sally Jungwirth, a Financial Counselor at Consumer Action Law Centre, takes calls from struggling Australians through the National Debt Helpline. She shared that BNPL services like Afterpay are often used by people who can’t get loans from banks and fall into debt traps.

‘A lot of clients don't know about alternatives like no-interest loans. You know, these are people who aren't able to access conventional credit because they wouldn't meet the responsible lending criteria, so they turn to BNPL,’ she revealed.

View attachment 32985

Afterpay Plus links the user’s account to payment services like Apple Pay, Google Pay or Samsung Pay. Credit: Blake Wisz/Unsplash

Consumer advocates also pointed out that the Afterpay Plus terms state if you unsubscribe from the $10 per month service, you can’t sign back up again for 12 months. This makes people reluctant to stop payments.

Tom Abourizk from the Consumer Action Law Centre believes this requirement is deliberately designed to avoid regulation.

However, Afterpay shared that their 12-month break is ‘in alignment with the current BNPL regulatory framework and its requirements’.

'Like all BNPL products, Afterpay Plus is designed to fall within an exemption to the definition of credit. Under this loophole, a provider can only charge fees on one credit contract within 12 months,' Mr Abourizk said.

'We have been telling Afterpay for years that we are seeing people use their product to pay for essentials. It is concerning that they have made this even easier with Afterpay Plus while still going to lengths to avoid the consumer safeguards in the credit law,' he added.

Calls to close BNPL regulation loopholes

The government has announced upcoming reforms to the BNPL sector, including requiring responsible lending checks. But the exact details are still being worked out.

Mr Kelly from CHOICE argued that Afterpay Plus proves the need for air-tight regulations.

'It's crucial that any new regulations to rein in buy now, pay later providers include safe lending obligations, including a requirement to verify income before approving a loan,' he explained.

As for consumers, experts suggest being cautious with services like Afterpay Plus:

Tip

If you need help managing debts or bills, contact the National Debt Helpline at 1800 007 007 for free, confidential and independent information and advice.

Key Takeaways

• Afterpay has introduced a new service, Afterpay Plus, that links with Apple Pay, Google Pay, and Samsung Pay, providing easy access to instant loans.
• Consumer advocacy groups are raising concerns about Afterpay Plus, stating it may worsen financial situations for users by enabling too easy access to credit.
• People who unsubscribe from Afterpay Plus will be banned from using the service for 12 months, a stipulation being criticised as a deterrent from cancelling.
• Advocacy groups are urging reforms and new regulations, including safe lending obligations, as the BNPL sector lacks consumer protections.

Members, have you used BNPL services like Afterpay? What has your experience been? Let us know in the comments below.

All of these buy now pay later scabs should be banned immediately. Why would anyone get their groceries on a buy now pay later, they would be paying after they have even pooped it out the other end. If these horrible plans were stopped immediately, it might be hard for some for a while but economic problem solved. Oh thats right, the govt approved this so those leeches must be getting something out of preying on those less fortunate.

 

[Sheenagh]

These services are disaster for poor money managers. If you can't afford to pay for it up front then you can't afford it, full stop.
The old layby service was a much better option, at least you didn't get the goods until they were paid for.
It's the same as people who take off overseas for holidays, on their credit card. How stupid can you get, the holiday is over and you're paying it off for years, along with the interest.
Tried to explain this to a family member who shops Boxing Day specials, Flash sales, etc on her credit
card, thinking she is getting a bargain.
She only pays back the minimum payment each month, the goods end up costing her 3 or 4 times more than the before sale price. Can't get it thru her thick skull. This generation just want it all and NOW.

I have a girlfriend who has travelled the world over the last 40 years by using her credit card, getting back home, paying off the card and then booking and paying for the next holiday and off she goes again. This is the only way she does it and she cannot be told. PS: she even pays up for rent on the credit card before she goes.

 

[mylittletibbies]

I have a girlfriend who has travelled the world over the last 40 years by using her credit card, getting back home, paying off the card and then booking and paying for the next holiday and off she goes again. This is the only way she does it and she cannot be told. PS: she even pays up for rent on the credit card before she goes.

Sounds like when God gave out brains, she thought he said trains and said she'd wait for the next one, lol

 

[Janice McKay]

Buy now, pay later (BNPL) services like Afterpay and Zip have exploded in popularity recently. Their success is built on allowing shoppers to split purchase payments into multiple instalments with no upfront costs.

But consumer advocates warn these services can also lead customers into debt traps.

Now, Afterpay has launched a paid subscription service called Afterpay Plus, which makes it even easier to access loans.

What is Afterpay Plus, and how does it work?

Afterpay Plus costs $10 per month and links your Afterpay account to payment services like Apple Pay, Google Pay or Samsung Pay.

This means Afterpay users can get instant access to an Afterpay loan simply by tapping their phone anytime with limited checks on whether it is appropriate for their financial situation and no oversight over whether the user is paying for essentials.

View attachment 32984

Afterpay Plus is a monthly subscription service that links Afterpay to other payment services. Credit: Afterpay

According to financial counsellors and consumer rights groups, the new product allows Afterpay to dodge regulations and could tempt users into bad financial habits.

Afterpay claims the paid subscription model is currently invitation-only and aimed at their most engaged users for now.

‘Invitation to Afterpay Plus is limited and considers credit eligibility criteria,’ according to the Afterpay website.

However, advocates argued making BNPL credit even more seamless is concerning.

'Afterpay Plus takes poorly regulated loans, combines it with a costly subscription model, and allows people to sign up for a new loan just by swiping their phone at the checkout,' said Andy Kelly, Head of Campaigns and Mobilisation at CHOICE.

CEO of Financial Counselling Australia, Fiona Guthrie, said Afterpay Plus raises red flags because it could tempt even careful spenders into bad habits.

‘I guess the more seamless it becomes, the less people kind of stop and think about it as a product and taking out a loan. People don't think of it as credit, generally, but you're using someone else's money,’ she explained.

Sally Jungwirth, a Financial Counselor at Consumer Action Law Centre, takes calls from struggling Australians through the National Debt Helpline. She shared that BNPL services like Afterpay are often used by people who can’t get loans from banks and fall into debt traps.

‘A lot of clients don't know about alternatives like no-interest loans. You know, these are people who aren't able to access conventional credit because they wouldn't meet the responsible lending criteria, so they turn to BNPL,’ she revealed.

View attachment 32985

Afterpay Plus links the user’s account to payment services like Apple Pay, Google Pay or Samsung Pay. Credit: Blake Wisz/Unsplash

Consumer advocates also pointed out that the Afterpay Plus terms state if you unsubscribe from the $10 per month service, you can’t sign back up again for 12 months. This makes people reluctant to stop payments.

Tom Abourizk from the Consumer Action Law Centre believes this requirement is deliberately designed to avoid regulation.

However, Afterpay shared that their 12-month break is ‘in alignment with the current BNPL regulatory framework and its requirements’.

'Like all BNPL products, Afterpay Plus is designed to fall within an exemption to the definition of credit. Under this loophole, a provider can only charge fees on one credit contract within 12 months,' Mr Abourizk said.

'We have been telling Afterpay for years that we are seeing people use their product to pay for essentials. It is concerning that they have made this even easier with Afterpay Plus while still going to lengths to avoid the consumer safeguards in the credit law,' he added.

Calls to close BNPL regulation loopholes

The government has announced upcoming reforms to the BNPL sector, including requiring responsible lending checks. But the exact details are still being worked out.

Mr Kelly from CHOICE argued that Afterpay Plus proves the need for air-tight regulations.

'It's crucial that any new regulations to rein in buy now, pay later providers include safe lending obligations, including a requirement to verify income before approving a loan,' he explained.

As for consumers, experts suggest being cautious with services like Afterpay Plus:

Tip

If you need help managing debts or bills, contact the National Debt Helpline at 1800 007 007 for free, confidential and independent information and advice.

Key Takeaways

• Afterpay has introduced a new service, Afterpay Plus, that links with Apple Pay, Google Pay, and Samsung Pay, providing easy access to instant loans.
• Consumer advocacy groups are raising concerns about Afterpay Plus, stating it may worsen financial situations for users by enabling too easy access to credit.
• People who unsubscribe from Afterpay Plus will be banned from using the service for 12 months, a stipulation being criticised as a deterrent from cancelling.
• Advocacy groups are urging reforms and new regulations, including safe lending obligations, as the BNPL sector lacks consumer protections.

Members, have you used BNPL services like Afterpay? What has your experience been? Let us know in the comments below.

I have used it once. The object of Afterpay is to buy something like tyres as we did and then pay off over 4 payments. Which is what we did. It is very handy and all it takes is restraint on the shopper. After all, it helps, but don't abuse it. It is still a loan.

 

[Pat T]

These services are disaster for poor money managers. If you can't afford to pay for it up front then you can't afford it, full stop.
The old layby service was a much better option, at least you didn't get the goods until they were paid for.
It's the same as people who take off overseas for holidays, on their credit card. How stupid can you get, the holiday is over and you're paying it off for years, along with the interest.
Tried to explain this to a family member who shops Boxing Day specials, Flash sales, etc on her credit
card, thinking she is getting a bargain.
She only pays back the minimum payment each month, the goods end up costing her 3 or 4 times more than the before sale price. Can't get it thru her thick skull. This generation just want it all and NOW.

It is so frustrating trying to get through to some people who can’t see reality.

 

[Lizzie1149]

Buy now, pay later (BNPL) services like Afterpay and Zip have exploded in popularity recently. Their success is built on allowing shoppers to split purchase payments into multiple instalments with no upfront costs.

But consumer advocates warn these services can also lead customers into debt traps.

Now, Afterpay has launched a paid subscription service called Afterpay Plus, which makes it even easier to access loans.

What is Afterpay Plus, and how does it work?

Afterpay Plus costs $10 per month and links your Afterpay account to payment services like Apple Pay, Google Pay or Samsung Pay.

This means Afterpay users can get instant access to an Afterpay loan simply by tapping their phone anytime with limited checks on whether it is appropriate for their financial situation and no oversight over whether the user is paying for essentials.

View attachment 32984

Afterpay Plus is a monthly subscription service that links Afterpay to other payment services. Credit: Afterpay

According to financial counsellors and consumer rights groups, the new product allows Afterpay to dodge regulations and could tempt users into bad financial habits.

Afterpay claims the paid subscription model is currently invitation-only and aimed at their most engaged users for now.

‘Invitation to Afterpay Plus is limited and considers credit eligibility criteria,’ according to the Afterpay website.

However, advocates argued making BNPL credit even more seamless is concerning.

'Afterpay Plus takes poorly regulated loans, combines it with a costly subscription model, and allows people to sign up for a new loan just by swiping their phone at the checkout,' said Andy Kelly, Head of Campaigns and Mobilisation at CHOICE.

CEO of Financial Counselling Australia, Fiona Guthrie, said Afterpay Plus raises red flags because it could tempt even careful spenders into bad habits.

‘I guess the more seamless it becomes, the less people kind of stop and think about it as a product and taking out a loan. People don't think of it as credit, generally, but you're using someone else's money,’ she explained.

Sally Jungwirth, a Financial Counselor at Consumer Action Law Centre, takes calls from struggling Australians through the National Debt Helpline. She shared that BNPL services like Afterpay are often used by people who can’t get loans from banks and fall into debt traps.

‘A lot of clients don't know about alternatives like no-interest loans. You know, these are people who aren't able to access conventional credit because they wouldn't meet the responsible lending criteria, so they turn to BNPL,’ she revealed.

View attachment 32985

Afterpay Plus links the user’s account to payment services like Apple Pay, Google Pay or Samsung Pay. Credit: Blake Wisz/Unsplash

Consumer advocates also pointed out that the Afterpay Plus terms state if you unsubscribe from the $10 per month service, you can’t sign back up again for 12 months. This makes people reluctant to stop payments.

Tom Abourizk from the Consumer Action Law Centre believes this requirement is deliberately designed to avoid regulation.

However, Afterpay shared that their 12-month break is ‘in alignment with the current BNPL regulatory framework and its requirements’.

'Like all BNPL products, Afterpay Plus is designed to fall within an exemption to the definition of credit. Under this loophole, a provider can only charge fees on one credit contract within 12 months,' Mr Abourizk said.

'We have been telling Afterpay for years that we are seeing people use their product to pay for essentials. It is concerning that they have made this even easier with Afterpay Plus while still going to lengths to avoid the consumer safeguards in the credit law,' he added.

Calls to close BNPL regulation loopholes

The government has announced upcoming reforms to the BNPL sector, including requiring responsible lending checks. But the exact details are still being worked out.

Mr Kelly from CHOICE argued that Afterpay Plus proves the need for air-tight regulations.

'It's crucial that any new regulations to rein in buy now, pay later providers include safe lending obligations, including a requirement to verify income before approving a loan,' he explained.

As for consumers, experts suggest being cautious with services like Afterpay Plus:

Tip

If you need help managing debts or bills, contact the National Debt Helpline at 1800 007 007 for free, confidential and independent information and advice.

Key Takeaways

• Afterpay has introduced a new service, Afterpay Plus, that links with Apple Pay, Google Pay, and Samsung Pay, providing easy access to instant loans.
• Consumer advocacy groups are raising concerns about Afterpay Plus, stating it may worsen financial situations for users by enabling too easy access to credit.
• People who unsubscribe from Afterpay Plus will be banned from using the service for 12 months, a stipulation being criticised as a deterrent from cancelling.
• Advocacy groups are urging reforms and new regulations, including safe lending obligations, as the BNPL sector lacks consumer protections.

Members, have you used BNPL services like Afterpay? What has your experience been? Let us know in the comments below.

How come these organisations are allowed to flourish without control. When first set up they should have been put under the credit act. After all it is credit. Beggars belief it can get to this stage before some jerk in government starts yelling loud enough to get something happening when the customers of the organisations and those who provide them have been screaming for months about how big a scam it is

 

[Ian Crane-Luff]

I use Afterpay regularly but never for groceries, but for shoes, cloths and other more expencive items as a pensioner I would not be able to buy when price advantages are available, never missed a payment and I;ve spent up to a thousand $

 

[mylittletibbies]

I use Afterpay regularly but never for groceries, but for shoes, cloths and other more expencive items as a pensioner I would not be able to buy when price advantages are available, never missed a payment and I;ve spent up to a thousand $

Alright when you know how to manage money.

 

[Mikeyboy2012]

Buy now, pay later (BNPL) services like Afterpay and Zip have exploded in popularity recently. Their success is built on allowing shoppers to split purchase payments into multiple instalments with no upfront costs.

But consumer advocates warn these services can also lead customers into debt traps.

Now, Afterpay has launched a paid subscription service called Afterpay Plus, which makes it even easier to access loans.

What is Afterpay Plus, and how does it work?

Afterpay Plus costs $10 per month and links your Afterpay account to payment services like Apple Pay, Google Pay or Samsung Pay.

This means Afterpay users can get instant access to an Afterpay loan simply by tapping their phone anytime with limited checks on whether it is appropriate for their financial situation and no oversight over whether the user is paying for essentials.

View attachment 32984

Afterpay Plus is a monthly subscription service that links Afterpay to other payment services. Credit: Afterpay

According to financial counsellors and consumer rights groups, the new product allows Afterpay to dodge regulations and could tempt users into bad financial habits.

Afterpay claims the paid subscription model is currently invitation-only and aimed at their most engaged users for now.

‘Invitation to Afterpay Plus is limited and considers credit eligibility criteria,’ according to the Afterpay website.

However, advocates argued making BNPL credit even more seamless is concerning.

'Afterpay Plus takes poorly regulated loans, combines it with a costly subscription model, and allows people to sign up for a new loan just by swiping their phone at the checkout,' said Andy Kelly, Head of Campaigns and Mobilisation at CHOICE.

CEO of Financial Counselling Australia, Fiona Guthrie, said Afterpay Plus raises red flags because it could tempt even careful spenders into bad habits.

‘I guess the more seamless it becomes, the less people kind of stop and think about it as a product and taking out a loan. People don't think of it as credit, generally, but you're using someone else's money,’ she explained.

Sally Jungwirth, a Financial Counselor at Consumer Action Law Centre, takes calls from struggling Australians through the National Debt Helpline. She shared that BNPL services like Afterpay are often used by people who can’t get loans from banks and fall into debt traps.

‘A lot of clients don't know about alternatives like no-interest loans. You know, these are people who aren't able to access conventional credit because they wouldn't meet the responsible lending criteria, so they turn to BNPL,’ she revealed.

View attachment 32985

Afterpay Plus links the user’s account to payment services like Apple Pay, Google Pay or Samsung Pay. Credit: Blake Wisz/Unsplash

Consumer advocates also pointed out that the Afterpay Plus terms state if you unsubscribe from the $10 per month service, you can’t sign back up again for 12 months. This makes people reluctant to stop payments.

Tom Abourizk from the Consumer Action Law Centre believes this requirement is deliberately designed to avoid regulation.

However, Afterpay shared that their 12-month break is ‘in alignment with the current BNPL regulatory framework and its requirements’.

'Like all BNPL products, Afterpay Plus is designed to fall within an exemption to the definition of credit. Under this loophole, a provider can only charge fees on one credit contract within 12 months,' Mr Abourizk said.

'We have been telling Afterpay for years that we are seeing people use their product to pay for essentials. It is concerning that they have made this even easier with Afterpay Plus while still going to lengths to avoid the consumer safeguards in the credit law,' he added.

Calls to close BNPL regulation loopholes

The government has announced upcoming reforms to the BNPL sector, including requiring responsible lending checks. But the exact details are still being worked out.

Mr Kelly from CHOICE argued that Afterpay Plus proves the need for air-tight regulations.

'It's crucial that any new regulations to rein in buy now, pay later providers include safe lending obligations, including a requirement to verify income before approving a loan,' he explained.

As for consumers, experts suggest being cautious with services like Afterpay Plus:

Tip

If you need help managing debts or bills, contact the National Debt Helpline at 1800 007 007 for free, confidential and independent information and advice.

Key Takeaways

• Afterpay has introduced a new service, Afterpay Plus, that links with Apple Pay, Google Pay, and Samsung Pay, providing easy access to instant loans.
• Consumer advocacy groups are raising concerns about Afterpay Plus, stating it may worsen financial situations for users by enabling too easy access to credit.
• People who unsubscribe from Afterpay Plus will be banned from using the service for 12 months, a stipulation being criticised as a deterrent from cancelling.
• Advocacy groups are urging reforms and new regulations, including safe lending obligations, as the BNPL sector lacks consumer protections.

Members, have you used BNPL services like Afterpay? What has your experience been? Let us know in the comments below.

Another debt trap. Small amount add up! Should only be used for one-off purchases...occasionally.

 

[Macarj]

All pay later things are bad .... like credit cards too ... thanks but no thanks.

Why are all pay later things bad if you understand finance and pay when due there isn't a problem they are only bad if people don't pay and those people should be smart enough not to use them I always use PayPal pay in 4 for large expensive items I buy on line The payments are automatic from the card I have linked to my Pay Pal account there is also a text message 2 or 3 days before due so I can make sure there is money available on the card I have been using Pay Pal pay in 4 for 7years and never missed a payment

 

[mylittletibbies]

Why are all pay later things bad if you understand finance and pay when due there isn't a problem they are only bad if people don't pay and those people should be smart enough not to use them I always use PayPal pay in 4 for large expensive items I buy on line The payments areI automatic from the card I have linked to my Pay Pal account there is also a text message 2 or 3 days before due so I can make sure there is money available on the card I have been using Pay Pal pay in 4 for 7years and never missed a payment

I think most people, along with myself did say it was bad for people who are bad money managers
Obviously if you pay it off on time, no interest, no problem.
Most people I know, who use this service, have ended up in trouble because they just have no idea.

 

[Ezzy]

Don't have this & don't want it.

This is a certain trap for the unwary as members have stated above. Paying just the minimum can & will in some cases lead to financial ruin. (don't open the door to that knock lest it is a Debt Collector).