Every buy now, pay later provider in Australia

While some retailers such as furniture and appliance stores have offered interest-free or delayed payment options for decades, it wasn’t really until the launch of Afterpay in 2015 that BNPL as we know it really started to take off, with many other rival platforms popping up shortly after. A 2024 report from international banking software platform Mambu found that 24% of Australian consumers now use BNPL products.

It seems almost every week a new brand sprouts up claiming to offer buy now pay later services, and quite frankly, it’s getting a little hard to keep track of them all. So Savings.com.au has prepared a list of every BNPL provider in Australia (that we know of) at the moment for every day consumers.

BNPL in Australia is generally split into three distinct categories:

• Specialist products offered by fintechs such as Zip and Afterpay
• Brands servicing a niche, such as for solar panels
• Those offered by big banks and platforms such as Paypal that have integrated instalments into their existing payments framework

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The table below features personal loans with some of the lowest interest rates on the market.

Here is a list of every BNPL provider (that we know of) available in Australia at the time of writing for everyday consumers:

Afterpay

Afterpay is comfortably the biggest of the BNPL platforms in Australia. In 2024, Afterpay said it had 3.5 million active users (customers who have used it in the previous twelve months) and 129,000 merchants.

Now owned by Jack Dorsey's Block, Afterpay is a no-credit-check service with a sign up process designed to be quick enough for users to do while in line at the store. Your purchase is split into four repayments due at regular intervals, and you may make early payments. Usually you'll need to pay about 25% upfront, although some customers can access a feature that allows no upfront payment for purchases under $500.

Other key Afterpay facts:

• • New customers start with a spending limit around $600 which gradually increases with consistently on-time repayments
  • $7 late fees after the initial $10
  • Late fees capped at 25% of the purchase price (for purchases over $40, late fees are capped at the lower of 25% of the purchase price or $68)
  • Four fortnightly repayments 
  • No interest charged 
  • A digital card for purchases
  • Qantas Frequent Flyer (QFF) point compatibility
  • Can be used for flights with Webjet

Brighte

Brighte is a buy now, pay later solution aimed exclusively at solar and renewable energy home improvements. It is the leading 0% interest fintech for solar and home improvements with more than $500 million financed to date. Brighte claims one in 14 solar installations in residential homes are financed through its platform.

Brighte has one of the highest credit limits on this list with up to $55,000, though solar panels can cost thousands so this is to be expected.

Repayment terms are anywhere from six months to ten years.

In terms of costs, Brighte charges:

• A $75 establishment fee
• A $2.30 weekly account keeping fee
• A $4.99 late payment fee (capped at $49.90 each year).

Pre-approval is available for purchases up to $15,000 with Brighte.

Compare Green Financing Options

CommBank StepPay

Commonwealth Bank was one of the first big players to launch a BNPL service in March 2021.Available only to eligible Commonwealth Bank (CBA) customers, StepPay is linked to CBA bank accounts and can be used anywhere its debit or credit cards are accepted, a big advantage over other competitors which charge extra merchant fees.

With CommBank BNPL:

• Purchases over $100 are split into four equal fortnightly instalments
• For purchases under $100, the full amount will come out of the linked CommBank account in one go
• No interest charges, monthly or annual fees apply
• Late fees of $10 apply per missed instalment repayment
• A credit limit of up to $2,000 applies
• Credit checks apply to customers

Customers can access CommBank BNPL via the bank’s app or by adding it to their phone’s digital wallet.

Gimmie

Gimmie says it can turn your "big buys into big brag-worthy buys".

The brand is distinct in the market because customers can purchase products directly from the Gimmie site. 

For example, a Hisense 100" QLED 4K TV starts at $72.63 per week at the time of writing, for a retail price of $5,995.

Customers have two options: Pay the retail price if paid within 90 days; or pay "a little more" than retail price in weekly, fortnightly, or monthly instalments over one or two years.

Missed payments on the second option incur a $10 late payment fee. 

Customers are subject to a form of pre-approval and borrowing power assessment, must provide a drivers license and other ID, pay and bank account info, and not be bankrupt. 

Handypay

Handypay is a subsidiary of personal loan provider OurMoneyMarket and was launched in 2019.

Handypay is slightly different from other providers in that it targets less discretionary items. Instead, it targets home improvement purchases, eco-friendly additions to the home, health treatments, and education courses.

It allows you to borrow up to $75,000 and make interest free repayments, with terms lasting up to seven years.

There is a one-off upfront fee of $250, and a $35 late fee.

Klarna

Swedish-based Klarna is one of the world’s largest BNPL platforms with more than 100 million customers. It only arrived in Australia in early 2020 when Commonwealth Bank acquired 50:50 ownership, but it grew quickly and is now one of the most prominent BNPL providers in Australia along with Afterpay and Zip.

Klarna is very simple, allowing customers to spread a purchase over four interest-free instalments much like Afterpay, although it also offers a 36-month financing plan for larger purchases. Klarna has a minimum spend of $35 and no maximum credit limit, with each limit “subject to an individual availability assessment”.

Klarna does charge late fees too, which amount to $3 per instalment for purchases over $50, capped at $7.

Customers can also be charged a varying amount to 'snooze' repayments if they think they’ll miss the deadline.

See also: Klarna the first BNPL platform to launch its own loyalty scheme

NAB Now Pay Later

NAB was the last of the major banks to dip its toe into the BNPL pond. In late May 2022 the bank launched "NAB now pay later".

The maximum limit is $1,000, and customers can split purchases into four fortnightly repayments, with no late fees, no interest, and no account fees.

Late payments could mean the customer's BNPL account will be blocked, and customers are also unable to go into negative balance on their account.

Payo

Payo claims to be Australia's first 'eat now pay later' app. It is designed specifically for BNPL but at cafes, restaurants and other dining options, and allows customers up to $1,000 in credit.

Customers can eat now and pay later in four instalments, deducted on Wednesdays. The app charges no interest and no account fees. Participating restaurants can be found on the app.

There is a minimum payment of $10 per fortnight, and if the payment is late there's a $10 fee per instalment up to $40.

PayPal Pay in 4 

Another entrant to the market for 2021, payments giant PayPal released its own platform called PayPal Pay in 4 in March 2021. PayPal Pay in 4 works the same way other leading platforms do, allowing customers to split eligible purchases between $50-$2,000 over four equal, interest-free fortnightly instalments and charging no fees for on-time repayments.

There are no late fees, however Paypal could suspend the service until the balance is paid in full. For extended non-payment periods, other Paypal services could be suspended as well.

In late August 2022, Paypal boosted the maximum balance to $2,000 from $1,500.

PayRight

PayRight is a payment plan provider that's been around since 2016, and became ASX listed in December 2020. It works essentially the same way Afterpay and co. does, offering interest-free fortnightly or monthly instalments with terms of up to 36 months.

It claims to be different however by being geared towards larger purchases, and has a maximum credit limit of $20,000. According to internal data, the average transaction with PayRight is approximately $3,000. For purchases from $10,000 to $20,000, the terms allowable are 48-60 months.

In terms of costs PayRight has:

• An establishment fee that depends on your plan length
  • $5 for three months
  • $39 for six months
  • $69.90 for 12-18 months
  • $74.90 for 24-36 months
  • $89.95 for 48-60 months
• A monthly account keeping fee of $3.95
• A payment processing fee of $2.95, added to each repayment
• And a late payment fee of up to $12.95, charged separately

There may also be extra costs to take out additional repayment plans.

Zip Money & Zip Pay

Zip is the second biggest BNPL platform in Australia, and actually has two separate BNPL brands:

• Zip Money: for larger purchases, account limit over $1,000 (up to $5,000)
• Zip Pay: for smaller purchases, account limit under $1,000

Zip in total has 6.3 million active members globally and is offered by more than 34,000 different stores and merchants. According to Roy Morgan, almost half of Australians know of Zip. Zip has also teamed up with Qantas to offer 'fly now pay later'.

What is Zip Money?

Zip Money is a line of credit with credit limits over $1,000, and is the less popular of Zip’s two brands. Regular accounts can access up to $5,000 and in special circumstances, credit limits can be up to $50,000. Zip Money does charge some interest, but it is interest-free for the first three months. Zip Money's late fee is $15.

What is Zip Pay?

Zip Pay (for smaller purchases) functions in a very similar manner to Afterpay in that it allows you to create an account in minutes (two minutes 18 seconds for us) and allows you to link a debit card for in-store and online purchases. Zip allows users to choose how often their repayments are made based on their preferences, be it monthly, fortnightly, weekly or instantly, and unlike Afterpay does require a credit check.

Other key Zip Pay facts:

• It charges a $5 late fee (capped)
• $9.95 monthly account fee which is waived if you carry no balance or pay the closing balance in full by the due date 
• $40 per month minimum required payments 

Similar BNPL platforms

Not to be outdone by these heavy hitters above, there are other platforms that aren’t quite a traditional BNPL service but are worth mentioning nonetheless. These are:

• Amex Plan It
• Limepay
• Splitit
• Westpac PartPay

Plan It (American Express)

American Express dipped its proverbial toes into the BNPL sector in mid-2020 when it released a new feature for customers called Plan It. Using the American Express App, Plan It lets customers move a portion of their credit card balance into a payment plan spread over three, six, or 12 months, with a fixed monthly fee and 0% interest.

Available for use on balances above $100, Amex Plan It charges a fixed monthly fee of 0.42%-1.04% of the starting plan balance, depending on the type of card the customer has.

Limepay

Limepay is one of the smaller BNPL platforms in Australia but is still worth a shout. Launching in mid-2020, Limepay is a bit different as it is a white-label BNPL, allowing merchants to effectively launch their own BNPL platform through its website.

Limepay offers flexible payment instalments in the standard four blocks. It is designed to streamline the process for the consumer, who can link a credit or debit card or use a digital wallet to access the service.

Splitit

Splitit lets customers make purchases using an existing debit or credit card but in deferred instalments, letting them continue to enjoy the benefits of their current payment methods such as rewards points. Splitit doesn’t charge any fees beyond your usual debit and credit card fees and interest charges.

Westpac PartPay

After dipping its toe in the BNPL world through investments in Zip and a partnership with Afterpay, Westpac has launched its own version of BNPL, called PartPay.

PartPay allows Westpac credit card customers to split payments into four instalments. 

The purchase must be on a linked digital PartPay card and be valued at $100 or more, with four repayments split over six weeks.

The digital card can be added to smartphone wallets via the Westpac app.

The account is linked to a bank account and fortnightly payments will be automatically deducted. 

There are no late payment fees and zero interest, but if a customer misses a payment, the instalment is transferred to the main credit card purchase balance, which accrues interest.

PartPay customers can still accrue rewards and points, and access complimentary insurance associated with their Westpac credit card.

Anti-BNPL platforms

While the BNPL craze might have taken off here, that doesn’t mean everyone is a fan of it. There are a couple of platforms and startups that have appeared with the intention of combatting the potentially dangerous practices of buying now and paying later. Arguably the most prominent are:

YouPay

The recently launched YouPay describes itself as an alternative to BNPL, having begun in response to the 'staggering number' of people signing onto consumer debt products. YouPay lets shoppers send private payment links to friends and family, instead of encouraging people to pay for one-quarter of a purchase upfront, potentially accruing late fees. This way, people can tap into support networks or shared expense groups instead of relying on debt plans.

"BNPL is an amazing piece of technology and a huge convenience when managed appropriately. When it isn’t though there can be problems for customers," CEO and Founder Matt Holme told Savings.com.au. 

"Before going into debt with an institution - be it BNPL or a credit card - we want you to turn to your support network of family and friends for assistance."

Up Maybuy

As a tongue-in-cheek marketing stunt, neobank Up launched Maybuy, which is marketed as a delayed-gratification savings feature in its app.

Customers can create automated savings plans for items in their online cart, called a Maybuy.

Once the savings goal is reached, customers can either purchase the item or opt to keep the money and put it towards something else.

What are the pros and cons of using buy now, pay later?

There are a lot of different BNPL providers out there and more popping up by the minute, while similar products are being launched by banks and credit card companies like American Express too.

Advantages of using buy now, pay later

With millions of Australians potentially using these products, they must be doing something right, and there definitely can be benefits to using them. For one, even the most expensive ones give you less runway than a credit card.

While most BNPL platforms cap their late fees (which are only a few dollars each time), the average credit card interest rate is around 17% per annum. When you combine that with higher credit limits on credit cards they have the potential to accrue thousands of dollars in interest debt, not to mention annual fees of hundreds of dollars on some cards.

Most BNPL platforms don’t charge ongoing fees, and will often have a debt ceiling of several dozen to a couple of hundred dollars before you get cut off. All in all, BNPL is generally cheaper than credit cards.

Other perceived benefits of BNPL include:

• They’re easy to apply for quickly
• You can easily sign up to multiple, as they have less extensive credit requirements
• Four in five consumers (81%) find BNPL convenient and easy to use (ASIC)
• They can have flexible repayments as well as simple ones
• Many stores offer them now

But of course, there are risks to using them too.

Disadvantages of using buy now, pay later

Although it can be cheaper than using a credit card, that isn’t always the case, especially if you don’t meet your repayments on time. While some BNPLs limit how much they charge in late fees (e.g. Afterpay never charges any higher than $68 in late fees before you get cut off) these can still add up if you’re missing repayments on other platforms as well, potentially accruing hundreds of dollars in late fees.

Some other potential cons of BNPL:

• There are less stringent credit checks on some, making them easier to apply for (see more about how BNPL can affect your credit score here)
• It can encourage impulse spending, particularly if you're already bad with credit, while you can also get into the habit of paying with debt, instead of with money you already have.

Another potential problem of using BNPL too much is that it could harm your ability to get a loan in the future, such as a home loan or car loan. Lots of lenders still regard them as a line of credit because you’re borrowing money you don’t have, which can look bad on an application and lead to you getting rejected.

So with buy now, pay later, the disadvantages might not always be visible to you.

Which BNPL platform is the best?

As with any financial product, no buy now, pay later service is ‘best’ for everyone. Afterpay might be the biggest and most well-known, but what makes a product right for you is how well it suits your financial personality.

If for example you only occasionally use BNPL, larger players like Zip or Afterpay might be a better shout as they’re more widely available and have simple repayments. Other options like Klarna might be more suited to those who want to make more regular purchases or perhaps want to buy more expensive items.

Further, some might be offered by your bank or payments platform, and can be convenient to use as you are already used to the brand, and the instalment option might be integrated into the app.

There are lots of points of difference between each of the different BNPL platforms:

• Some conduct credit checks, some don’t
• Some charge higher fees, some don’t charge fees at all
• Some offer higher credit limits, while others offer longer or shorter repayment plans
• Some are available at a broader range of shops, while others are better suited for more niche purchases (such as Brighte for solar panels)

When deciding which one to use, consider each of these and compare each platform on them. But most importantly, you should think about whether you really need to use one at all.