Afterpay holiday guide

What you need to know to using Afterpay to layby your holiday

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Afterpay is a way to purchase items online and pay for them in instalments over an eight-week period before interest kicks in. If you haven't heard about it yet, you will soon. Especially now that the service is focusing on the travel market.

Already heavily integrated into the Australian shopping market, Afterpay has now partnered with Jetstar offering eight-week interest-free bookings on domestic and international flights. It is also offered on experience website RedBalloon.

More holidays are destined to follow, with Jetstar and other airlines and travel agencies, and when they do we'll keep you updated with all your options to book your trip using Afterpay.

Until then, you can still book your holidays and pay them back during each company's designated period with the buy now pay it later programs offered by travel agents and tour companies like Flight Centre and Contiki.

Which holiday retailers already offer book now, pay later options like Afterpay?

Afterpay isn't the only book now, pay later payment method in Australia. ZipMoney works in a similar way offering three-month interest-free repayments on holiday purchases with Luxury Escapes and Webjet.

Then, there are other retailers that offer their payment plans. Here's a snapshot of the most popular retailers that let you book now and complete your payment later.

What is Afterpay?

Afterpay is a payment option that lets you lay-by your purchase and pay it back in four equal instalments. Repayments are taken fortnightly and are complete after eight weeks. If you miss a payment or don't pay your purchase back on time, you'll be charged a late fee and your Afterpay account may be locked and stop you from making further purchases.

You can only use it if you're signed up with Afterpay and include your bank details. When you make a purchase, opt to pay via Afterpay, follow the prompts and your repayments will automatically be deducted from your account when due. You'll receive a text message the day before each payment is taken to remind you to have enough funds in your account.

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