What is AfterPay? Learn About Its Pros and Cons

Description:

Is it valid and safe to purchase anything from online stores in Australia using AfterPay? Learn everything about AfterPay: From its process to pros and cons.

Introduction:

If you are a frequent online shopper, you might already have heard about the term “AfterPay.” This “Buy now, pay later” service has quickly emerged as one of the most innovative and used approaches of payment solutions for online buyers.

• AfterPay is a popular payment method in Australia. According to a report by Choice, more than 1.5 million consumers use AfterPay as their payment solution to buy goods.
• AfterPay is a platform that makes it possible for you to buy anything now and pay for them later in instalments.
• Although the deal may sound good, it is natural to think about whether AfterPay is the safest payment solution or not.

Also Read: 5 Lead Magnet Ideas to Increase Revenue in Your eCommerce Store

This article will highlight everything about using AfterPay as your payment option.

What is AfterPay?

• AfterPay is part of the “buy now pay later” (BNPL) facility, which allows you to buy any product online and pay for the same later in instalments.
• AfterPay is growing fast across Australia and other countries as people find it not only convenient but also an affordable payment option.
• AfterPay is mostly used by millennials as it adheres to their spending habits and a great way to enjoy the product.
• Founded in Sydney in 2015, AfterPay lets you buy any products online – from clothes, furniture, makeup, pharmaceuticals, to even flight tickets!

What is The Process of Using Afterpay?

• Since AfterPay is a BNPL platform, it acts as a mediator between retailers and customers.
• AfterPay pays to the retailer on behalf of the customer, and then the customer pays back AfterPay.
• Once you purchase the product through AfterPay, you will need to make four fortnightly payments for eight weeks straight.
• The payments made to AfterPay are of the same value and are interest-free.
• AfterPay is a great payment option for customers as it doesn’t charge interest. However, the case is not the same with merchants.
• AfterPay charges fees to retailers who offer this service. Additionally, if you fail to keep up with the payments, a late fee will also be charged to you.
• While using AfterPay, you don’t have to enter into any loan or credit facility. But it also means there will be fewer protections in place for you as a customer.

The offer of getting the product straight away and paying them later in small repayments may sound tempting and positive, but things can quickly go out of control if not taken care of.

How To Use Afterpay?

Step 1: Signing up

• Go to AfterPay’s website, sign up for an account. The terms and conditions may include you being over 18, having a valid debit or credit card (from Visa or Mastercard) in your name, being capable of entering into a legal binding contract.

• When signing up, make sure you use a verifiable email address and phone number.

Step 2: Creating a Barcode

Once you are signed in, generate a temporary barcode. A temporary barcode will show the available spending amount that is scanned at the register when you make your purchase with the retailer.

Step 3: Making Payments

Now you can start using AfterPay as your payment option. You can either opt for an automatic payment option or manually pay during due dates.

Also Read: 5 Biggest Ecommerce Crisis and What to Learn from Them

Pros of Using AfterPay

• Seamless integration within stores
• A fast and easy approval process
• Fee and interest-free terms
• Provides an automatic framework for payment
• Easy Refund process

Cons of Using AfterPay

• Increased impulse spending
• Limited spending
• Non-payment fees

If you are planning to buy beds using AfterPay, check out Kings Warehouse. You can use AfterPay to buy bed frames, beds, furniture, and many more. Additionally, you can even buy kids furniture using AfterPay.