Established in 2014, Afterpay is an Australian financial technology company that is known for their zero interest pay later service. As one of the pioneers in the online pay later industry, Afterpay has managed to attract at least 14 million users from 5 countries including Australia, the US, the UK, Canada, and New Zealand. In each country, Afterpay is widely accepted by numerous retail stores across the country. Afterpay is also available for in-app purchases which comes with numerous different sellers.
How Does Afterpay Work?
One of the main benefits of using an online pay later service like Afterpay is that they are very easy and quick to work with. If you do not have an account, you can quickly sign up for one on their official website or app. You will be asked for several details including the following: Your Email, Phone number, Address, Date of birth and Preferred payment (credit or debit card).
As long as you do not have a problematic credit history, you can expect for your application to be confirmed soon after filling up the details. Aside from a good credit history, the only requirement left is the minimum age requirement of 18 years old. You can pay for your purchases with either a debit or credit card, but there are a few things that you have to take into account before we proceed with the payment details:
- Make sure your credit/debit card has sufficient funds
- Remaining balance that you have to pay for
- Your ability to pay back the purchase
When you pay with Afterpay, you will be granted a zero interest loan that you can pay back in 6 weeks time. The payment itself will be divided into 4 phase which will be charged out of your preferred card (credit or debit card).
Where Can I Use Afterpay?
Afterpay can only be used for online payment. You can either shop in any partnering online store or visit the Afterpay official website/app where you can find a wide variety of retailers partnering with Afterpay. Upon clicking on a retailer, you will be guided into their website to proceed with your purchase.
Afterpay have the right to disapprove your purchase.
The approval process is much stricter for new users with less than 6 weeks of installment.
You will not have to pay any interest, but expect a $10 penalty if you are not able to pay back on time.
An additional $7 penalty will be charged for each week that you fail to pay back your purchases.
Afterpay is one of the best “pay later” payment services that you can sign up for without any strict requirements. While using a loan service like Afterpay is highly convenient, remember to spend wisely as the penalties are quite high.