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Afterpay
Interest rate (p.a.)
0%
Min. loan amount
$35
Max. loan amount
$1,500

Summary

Afterpay allows you to shop now and pay later in 4 interest-free instalments over a 6-week period. Late fees will be charged for missed repayments.

Afterpay is a buy now pay later service available in many stores across Australia, both online and in-store. By verifying your identity and setting up an account, you'll have a line of credit up to $1,500 and a shopping account. You may use this account as a checkout option for purchases, which will allow you to pay back the full amount in 4 interest-free instalments over a 6-week period, with the first instalment debited at checkout. Charges will apply if you fail to make repayments on time.

Pros

  • No interest
  • No advance signup for in-store purchases
  • Reminders

Cons

  • $10 late fee

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How does Afterpay work?

You can start shopping with Afterpay by signing up and linking an Australian Visa or Mastercard debit or credit card. All you have to do is sign up and confirm your details.

  • Online. Buy online by selecting Afterpay at the checkout.
  • In-store. Buy in-store at selected retailers by using your phone to visit afterpayit.com.au and entering the amount you want. You’ll get a barcode on your phone that can be scanned at the cash register.

You pay the first quarter of the purchase price at checkout, with the remaining quarters to be paid back every 2 weeks after that date. Payments are processed automatically, and you'll receive reminders before payments are due.
In order to make sure the service is free to use for everyone, the amount you can spend at any one time may be subject to approval. All this information will be communicated to you before you've paid, so you can always make an informed decision.

See the full Afterpay store list

Features of shopping with Afterpay

  • No interest. Working in a way similar to a no-interest loan, the only charges a customer will pay are their instalments every 2 weeks, and any applicable late fees.
  • No advance sign-up for in-store purchases. Even if you don't have an account, you can still walk into a selected retailer and choose Afterpay. You'll just need to sign up later.
  • Manage your account. Sign in to see your upcoming payments, orders and account information.
  • Reminders. You'll be notified ahead of time when a payment is coming up and how much it is, so that you can make sure there's no overdrawing.
  • Automatic deductions. Each quarter amount is automatically deducted from your chosen card to make sure you can keep up with your repayments, even if you’re busy or you can’t get online.
  • Refunds and more. You can still get a refund for purchases you’ve made with Afterpay, in line with each store’s refunds policy.
  • Pay in advance. You can pay instalments ahead of time, penalty-free.
  • Market-leading security. Afterpay is a PCI DSS Level 1 certified compliant Service Provider organisation. This is the highest level of payment security there is, for both your card details and your personal information.
  • Earn rewards. Shopping through Afterpay and paying each of your instalments on time can earn you benefits through Afterpay's Pulse Rewards program. These rewards range from discounts at stores to being able to postpone your upfront quarter payment from checkout to 2 weeks after your purchase.

How much does Afterpay cost?

There are 2 costs involved with Afterpay. Firstly, there is the cost of the item you're buying. The other cost is a late fee for missed instalments.

If a deduction is unsuccessful, you will be notified and you will have a chance to log in and choose a different payment method. Failure to do so will incur a $10 late fee, followed by another $7 for every 7 days your payment is late.

Late payment fees are capped at 25% of the cost of the order, or $68 – whichever is less. For example, a $40 order will not incur late fees above $10, and a $400 order will not incur late fees above $68. If you believe you are unable to pay an instalment, you should contact Afterpay to discuss your options.
If you consistently fail to make repayments, Afterpay holds the right to report it to a credit reporting bureau.

Is Afterpay safe?

Afterpay is touted as a new way to pay and different from traditional credit products, but it is important to still be careful with Afterpay. While Afterpay does not check your credit history before you apply, it still reserves the right to report defaults to credit reporting bureaus such as Experian or Equifax. You need to keep this in mind before you apply.

In terms of your information, Afterpay is a PCI DSS Level 1 certified compliant Service Provider organisation. This means that it abides by a comprehensive set of requirements to keep your data secure.

What should I be aware of with Afterpay?

Afterpay and other buy now pay later services can hold a place within your financial toolkit. But like all financial products, there are things that you should watch out for.

  • Don't spend more than you can afford. While breaking your payments up into parts can make products seem more affordable, you are still paying the same amount for that product. Ensure that you can comfortably make each of your instalments so that you avoid any late fees.
  • The fees can add up. While Afterpay caps its late fees at $68, that amount is per order. If, for example, you fail to make payments on 4 orders, you will be facing late fees of up to $272. If you believe you won't be able to make a payment on time, be sure to contact Afterpay directly to try and work out a solution with them.
  • It could affect your credit score. Afterpay claims it avoids sending defaulted or late payments to credit bureaus, and that it will work with its customers to solve any financial difficulties. However, it does reserve the right to report defaulted payments to a credit bureau or to a third party collections agency.

Is there a limit to how much you can spend with Afterpay?

Afterpay limits your spending based on your history with the service. New accounts will be limited to $500, and this amount increases based on a number of factors based around how long you've used Afterpay and whether you've made your payments on time. Your spending limit may be reduced if you fail to make your payments on time, and the more consistently you miss your payments, the more your limit will be restricted. In short, your limit will increase the more you make your payments on time and will be reduced the more you fail to do so.

Does Afterpay do a credit check?

No. You'll be automatically approved as long as you're 18 or over and have a working credit or debit card.

How to sign up for Afterpay

In order to sign up, you have to meet the following criteria:

  • Be at least 18 years old and capable of entering into a legally binding contract
  • Have a valid and verifiable email address and mobile number
  • Have an Australian credit or debit card

Afterpay is not a store credit application. You don't have to sign anything or fill out an application form. All you have to do is make sure you've read the details and signed up online.

Should you offer Afterpay (for store owners)?

As a business owner, offering Afterpay or any other interest-free payment service has some pros and cons.

Pros

  • Increase buyer conversions. Flexible repayment options make the transition from browser to buyer smoother.
  • Higher purchase rate. Empower your customers to make additional purchases.
  • Increased customer base. Appeal to a larger customer base, such as those who otherwise may not have been able to afford your products. You also have access to Afterpay's 3.1 million strong customer base.1
  • Increased sales. Offering Afterpay as a payment option sees retailers averaging a 40% increase in average order value and new customer acquisition.
  • Decreased cart abandonment. Offering Afterpay sees an average 22% decrease in cart abandonment.

Cons

  • Fees. The cost of fees will depend on the transaction value and on your merchant agreement with Afterpay.
  • Waiting for payment. Processing times for payment from customer transactions may vary, depending on Afterpay and your bank.

Watch: Afterpay vs credit cards: Which is better?

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Elizabeth Finder

Lead Editor

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Bob

February 05, 2024

Hi I can’t get into my portal what should I do I press on the app and it won’t come up


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Sarah Megginson Finder

February 06, 2024

Hi Bob, We’re a financial review site and not affiliated with Afterpay, so we can’t provide personal customer service. You can contact AfterPay customer service here.


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Oliver Buahn

June 15, 2023

What is the repayment for $275 on Afterpay’ please call me. Because’ I have a Afterpay of $275an I was asked to pay $1000


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Sarah Megginson Finder

June 16, 2023

Hi Oliver,


We are not affiliated with or representatives of Afterpay, we are a review site. You can contact Afterpay customer support for assistance with this:

https://help.afterpay.com/hc/en-au/sections/360000137606-Contact-Afterpay


Hope this helps.


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Jackie

March 19, 2019

My Afterpay account has been closed and when I contacted them, I was told it was because of overdue money even though I have no outstanding purchases. They mentioned that I can reapply in 6-12 months. Not sure why this happened.


Avatar

Joshua Finder

March 19, 2019

Hi Jackie,


Thanks for getting in touch with Finder. I’m sorry to hear about your situation.


What I can advise is for you to present proofs that you don’t have outstanding purchases. Show them that you made timely repayments. From there, they should also be able to show you proofs that prove otherwise. By discussing your problem with them, you can better understand why your account was closed.


I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.


Have a wonderful day!


Cheers,

Joshua


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Kel

March 04, 2019

Hi,


So I have sent up an account with Afterpay. I tried to add my bank card details but it said can’t be accepted, is this because there is no money in the account ATM? Will it work when there is funds in that account?


Avatar

Jeni Finder

March 05, 2019

Hi Kel,


Thank you for getting in touch with Finder.


One of the qualifications to set up an Afterpay account is to make sure that there’s sufficient funds in your account like at least 25% of the purchase price. You may try again after depositing funds into your account and it should push through. Kindly contact Afterpay’s customer support team in the event that your account application is still unsuccessful.


I hope this helps.


Thank you and have a wonderful day!


Cheers,

Jeni


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Lala

February 28, 2019

Can I still reinstate my afterpay account after it goes to collections?


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Jhezelyn Finder

March 01, 2019

Hi Lala,


Thank you for your comment.


Once you paid your account in full, you can apply for your account to be reinstated. You may contact Afterpay support directly.


Regards,

Jhezelyn


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