The truth about Afterpay.
The truth
about Afterpay.
Get to know Afterpay and how we really work.
Get to know Afterpay and
how we really work.
Say no to compounding debt.
Afterpay is about enabling people to get what they want and need without the risk of compounding debt. Here’s how we protect customers:
We don’t charge interest.
When you pay with Afterpay, it’s always interest-free.
We don't charge late fees.
If you miss a payment, we don’t charge late fees.
We pause accounts.
If you miss a payment, we pause your account and you won’t be able to buy anything else with us until your payments are up to date. You may notice that your spending limit decreases too; this is because our real-time technology takes into account a range of different factors, including late payments, in deciding spending limits. Ultimately, all steps we take are to help you spend responsibly with Afterpay.
Afterpay in numbers.
0%
Interest, really.
Unlike credit cards, we don’t charge interest.
$600
That’s where our spending limits start; low.
They only increase with proven on-time repayment behaviour.
$150
1
The average amount spent per Afterpay order.
$95
2,3
That’s the average
Afterpay outstanding
balance in Canada.
By comparison, the average outstanding credit card balancein Canada is $4,185.496%
5
The amount of Canadians who pay their Afterpay installments on-time or early.31
The average age of an Afterpay customer is 31.
Did you know?
Afterpay encourages responsible spending
We take a number of steps to help ensure you spend responsibly. Our spending limits start low, at $600, and increase gradually over time with consistent on-time payments. We use email and text message reminders to make sure payments are made on time. If you miss a payment, we pause your account and you won’t be able to buy anything else with Afterpay until you’re up to date on payments. If an Afterpay shopper is having a hard time paying off their balance, we work with them on a case-by-case basis to develop a payment plan without any additional costs.
Afterpay is the opposite of credit cards
We created Afterpay to help people make purchases with their own money and avoid being stuck in compounding debt. Unlike credit cards, if an Afterpay shopper misses a payment, their account is paused and they won’t be able to buy anything else until they are up to date.
Afterpay does not affect your credit score.
We don’t do credit checks or report late payments, so there is no impact on your credit score or rating. We don’t believe that missing an installment payment with Afterpay should result in a bad credit history.
How does Afterpay work?
What happens if I miss a payment?
If you can't make a payment, you should contact us as soon as possible to discuss your options. You may be able to reschedule the payment or make a partial payment. We do everything we can to help you, including sending reminders leading up to the payment due date and an alert after a payment has failed. If you do miss a payment, we will pause your account and you won’t be able to buy anything else with us until your payments are up to date. You may notice your spending limit decreases too; this is because our system takes into account a range of different factors, including late payments, in deciding spending limits. If you do find yourself in financial difficulty, we have a dedicated team that can design a program specific to your circumstances to help you get back on track. Our team is here to support you if you are unexpectedly faced with a change in your financial situation. Ultimately, all steps we take are to help you spend responsibly with Afterpay.
Total late fees are capped at 25% of the order price, and will never exceed $68 per order, regardless of the order amount.
- For orders $40 and over: each time a payment is late, an initial fee of $10 will be charged. A further fee of up to $7 will be charged if the payment remains unpaid seven days after the due date. For example: A $60 order with four $15 instalments will incur an initial $10 late fee, and a further $5 if the payment remains unpaid seven days after the due date. In this case, the further fee of $7 is reduced because total late fees are capped at 25% of the order price, $15.
- For orders under $40: the maximum possible late fee is $10 and will only be charged once. For example: A $20 order with four $5 instalments will only ever incur a one-off $5 late fee.
We also pause your account until the balance is paid and you're back on track. We’re committed to doing everything we can to help you not miss a payment. We’ve designed Afterpay to be completely different to traditional credit products that charge interest, so that our customers are never in a situation of high compounding interest and revolving debt.
How does Afterpay make money?
The simple answer is that Afterpay charges a fee to merchants for each transaction; this is the main way we make money. Merchants gain access to a large and growing segment of shoppers who prefer not to incur credit card debt or interest. We have been purposefully designed to be free to consumers.
The simple answer is that Afterpay charges a fee to merchants for each transaction; this is the main way we make money. We have been purposefully designed to be free to consumers who pay on time. And unlike traditional credit providers, those are our best customers.
