Is Afterpay or Zip Money better?

Whether Afterpay or Zip Money is better depends on how much you're borrowing and your preferred repayment schedule. For example, for bigger purchases, Zip Money might be better because of the higher credit limit. To find the solution that's right for you, consider each of their credit limits and repayment schedules.

Can I use Afterpay and Zip Money at the same time?

You can have 2 different BNPL accounts open at the same time, but there are a few things to bear in mind. Firstly, under the new regulations both of these enquiries will appear on your credit file and could affect your score. Secondly, you won't be able to use both of your credit limits towards one purchase. Which leads to the third point: nor should you. It can be dangerous to use up credit limits across 2 different platforms. BNPL debt is still debt and can put you in financial hardship if you can't repay it, particularly when late fees start coming in. You cannot use one BNPL provider to pay the repayments for another.

Zip Money vs Afterpay

Afterpay and Zip Money are 2 prominent buy now pay later services allowing you to buy your goods but pay for them over time.
The main difference between them are credit limits, interest-free periods, fees and repayment flexibility.
You should be wary of fees and charges when using 'interest-free' plans.

What are Afterpay and Zip Money?

Afterpay and Zip Money are both buy now pay later (BNPL) providers. They give you a way to buy your goods but spread the cost out over time.

Zip offers 2 different buy now pay later options, Zip Pay and Zip Money. Zip Pay has a credit limit of $1,000 whereas Zip Money has a higher limit of $5,000. In this guide we're talking about Zip Money.

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Product	Interest rate (p.a.)	Min. loan amount	Max. loan amount	Establishment Fee	Credit Check Required?
Zip Money	25.9%	$1,000	$5,000	$0 up to $99 based on credit limit.	Yes	More info	loading Fetching your data...
Afterpay	0%	$35	$1,500	$0 establishment fee	No	More info	loading Fetching your data...

Showing 2 of 2 results

Do Afterpay and Zip Money conduct credit checks?

From 10th June 2025 BNPL services are subject to new regulations. As part of this, both Afterpay and Zip Money will perform credit checks when assessing your initial application and when considering you for credit increases. These enquiries will appear on your credit file.

Unlike credit cards, they still do not have to report your credit information and repayment history to credit bureaus.

What are the differences between Afterpay and Zip Money?

The main differences between Afterpay and Zip Money are the credit limits, interest-free periods, fees and repayment flexibility. While both options allow you to buy now and pay later, Zip Money functions more as a line of credit. It has an interest-free period, after which interest will be charged on your outstanding balance.

Be sure to keep in mind credit checks, repayment terms and late fees in your comparison.

Here's a more detailed breakdown of Afterpay vs Zip Money:

	Afterpay	Zip Money
Credit limit	Starts at $500 and gradually increases or decreases based on good or bad spending behaviour.	Between $1,000 and $5,000, with potential to increase after 6 months if eligible.
Interest	No interest if you meet repayments.	Interest-free period of 3 months. After this, interest will be charged at 25.9% p.a.
Repayments	To be made over 6 weeks.	Minimum monthly repayments apply. The minimum repayment is $10 a month or 3% of the amount owed, whichever is greater. Any outstanding repayments after the interest-free period will incur interest at 25.9% p.a.
Payment instalments	4 instalments, paid every 2 weeks. Payment begins on the day of purchase with 25% of the price paid upfront. The option for no upfront payment is available for customers with strong repayment history.	Choose to pay weekly, fortnightly or monthly. Your purchase will be broken into equal instalments for the duration of the interest-free period, unless you state otherwise.
Upfront and ongoing fees	None. A subscription service to Afterpay Plus is available for $9.99 a month.	A one-off establishment fee of $0-$99 may apply, depending on the credit limit you apply for. A $9.95 monthly account fee applies when you have an outstanding balance.
Late payment fees	Starts at $10. The late fee is never higher than 25% of the purchase price or $68, whichever is less.	A $15 late fee will be charged 7 days after your due date. If the payment is rejected by the bank, a dishonour fee of $5 will be applied to your account.
Payment flexibility	The number of instalments cannot be changed, but you can reschedule 3 times in a year. You can also make custom payments and pay more or less than the payment due.	You have the option of changing the frequency of your repayments. You can change it to weekly, fortnightly or monthly, so long as it covers the minimum amount owed.
Sign-up	Via app for in-store and online shopping. Registering prior to online shopping is not required; the account can be created afterwards.	You can sign up for Zip Money online.
Eligibility	Afterpay uses a mandatory ID verification process. To qualify for Afterpay, you must: Live in Australia. Be over 18. Have a valid and verifiable email address and mobile phone number. Use a valid Australian credit or debit card. Capable of entering into a legally binding contract.	To qualify for Zip Money, you must: Be over 18. Be an Australian citizen or permanent resident. Be employed (certain pensions may also be accepted). Have a good credit history. Have a valid and verifiable email address and mobile number.
Find out more	Read the full review	Read the full review

According to Finder's Consumer Sentiment Tracker, the average Australian used BNPL to make purchases around 3 times in the 6 months to June 2025. The average debt carried was $1,540.

Source: Finder's Consumer Sentiment Tracker

Our expert says: Be careful of the risks

"BNPL can be a useful tool to spread the cost of purchases over time but it comes with many risks. It can encourage people to overspend on impulse purchases when they don't have the funds available. It's also easy to see BNPL as a 'free' option because providers often advertise 'interest-free repayments'. They get money from other charges like account-keeping fees or late payment fees."

Rebecca Pike

Senior Money Writer

Frequently asked questions about Afterpay vs Zip Money

You can have 2 different BNPL accounts open at the same time, but there are a few things to bear in mind. Firstly, under the new regulations both of these enquiries will appear on your credit file and could affect your score.
Secondly, you won't be able to use both of your credit limits towards one purchase. Which leads to the third point: nor should you. It can be dangerous to use up credit limits across 2 different platforms. BNPL debt is still debt and can put you in financial hardship if you can't repay it, particularly when late fees start coming in.
You cannot use one BNPL provider to pay the repayments for another.

Thank you for your feedback!

Written by

Elizabeth Barry

Journalist

Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024. See full bio

Elizabeth's expertise

Elizabeth has written 208 Finder guides across topics including:

Banking
Personal finance
Investing

More resources on Finder

Full list of stores that accept Zip Money Afterpay vs zipPay

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Look out for repayment terms, late payment fees and flexible payments.