Dubbed ‘Send Now, Pay Later’, Aussies can now access what the providers call ‘reliable, ethical and affordable’ short term loans to consumers transferring money to over 200 countries and territories.
The service is a collaboration between Western Union, a global leader in cross border, cross currency money transfers, and Beforepay, who provide small short term loans. Consumers who use Western Unions Services borrow the money through Beforepay’s Pay on Demand wage advance product product.
Australians to send more overseas
Gregory Laurent, Regional Vice President of ANZ and Pacific Islands at Western Union, said the new service was part of Western Union’s overall strategy to “make financial services accessible to people everywhere”, and give more options to Australians looking to send money to families or communities.
In 2022, the ABS reported that for the first time, more than half the Australian population were either first or second generation immigrants. An increasing number of these people also hail from developing countries. In the top ten most common birthplaces for Australian immigrants, the department of home affairs now lists the Philippines, Vietnam, Nepal, Pakistan and Thailand. It follows then that there is an increased demand from new Australian residents to send money back to friends or family. Western Union research found 44% of Australians would like the option of borrowing extra money for their cross border transfers.
Eligibility and rates
‘Send Now Pay Later’ will have the same terms of eligibility as Beforepay's Pay on Demand wage advance product. To be eligible for the loan, applicants must be:
-
Over 18
-
An Australian resident
-
Receive regular income (weekly, fortnightly or monthly)…
-
…that works out to be no less than $300 a week
As far as rates go, there is a flat 5% transaction fee on the amount cashed out, with no interest or late fees. Western Union says the transaction fee will always be the only cost to customers on top of their repayments.
In the market for a personal loan? The table below features unsecured personal loans with some of the lowest interest rates on the market.
| Lender | Tags | Features | Link | Compare | |
|---|---|---|---|---|---|
| Featured Loan amounts from $2k to $75k |
| ||||
A bad time to be a fintech app?
Many fintech companies have suffered a difficult last few months. Buy Now Pay Later (BNPL) giant Openpay collapsed earlier this year, while other companies like Zip and Klarna have run into stormy waters.
Former Citi and Diners Club executive Grant Halverson believes rising funding costs and lower consumer spending spelt trouble for fintech apps like Afterpay who offer BNPL services.
“BNPL will be fine, it’s a niche product - fintech apps won’t survive.” Mr Halverson told Savings.com.au.
Beforepay is distinct from BNPL since these loans are not tied to consumer spending, but by the end of last year, their share price had taken an 86% tumble from its initial offering in January, the worst performance of any of the IPO’s listed on the ASX last year.
Beforepay CEO Jamie Twiss said Send Now Pay later catching on could provide “inclusive financial services to aspiring consumers around the world.”
The company are likely also hoping it can be a lifeboat at a time fintech apps are sinking fast.
Picture by Christine Roy on Unsplash
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Harrison Astbury
Brooke Cooper
