Afterpay vs Zip Pay
Keep an eye out for repayment terms, schedules and fees when comparing.
Key takeaways
- Afterpay and Zip Pay are buy now pay later services which allow you to buy goods but pay for them over time.
- They differ in terms of how they spread out your repayments, but they also have different fees and limits to consider.
- You should be wary of fees and charges when using 'interest-free' plans.
What are Afterpay and Zip Pay?
Both Afterpay and Zip Pay are buy now pay later (BNPL) services. BNPL allows you to buy what you need but either spread the cost out over time or delay the cost.
This works by the provider essentially paying for the product(s) on the buyer's behalf and the buyer repaying the provider later on.
Afterpay requires you to repay over the course of 6 week instalments. Zip Pay provides monthly statements with minimum repayments to be made each month.
Zip Pay has a credit limit of $1,000, but there are other tiers of Zip if you need a higher limit.
Paying late fees
In June 2025, 20% of Australians admitted that they didn't always manage to pay off their BNPL balance in time, meaning they incurred late fees and extra charges.
Compare Afterpay vs Zip Pay
| Afterpay | Zip Pay | |
|---|---|---|
| Credit limit | Starts with a low credit limit and gradually increases or decreases based on good or bad spending behaviour. | From $350 up to $1,000. |
| Interest | No interest. | No interest. |
| Repayments | To be made over 6 weeks. | To be made 1 calendar month after you receive your statement. A monthly account fee will apply if the balance is not paid by the due date. |
| Payment instalments | 4 instalments, paid every 2 weeks; 25% of the price is paid upfront. The option for no upfront payment is available for Afterpay Plus subscribers. | 2 payment schedules are available. You can either choose your own repayment amounts, dates and frequency to suit you. Or you can choose Zip's fee waiver schedule where Zip automatically adjusts your schedule to pay off the full balance owing each month to avoid the monthly account fee. |
| Upfront and ongoing fees | None. | A monthly account fee of $9.95 may apply if you don't pay your monthly statement in full. No fees will be charged for additional payments. |
| Late payment fees | The late fee starts at $10 and is never higher than 25% of the purchase price or $68, whichever is less. | A $7.50 late fee will be charged if you miss the minimum repayment. This will be charged 7 days after your due date. |
| Payment flexibility | The number of instalments cannot be changed, but you can make custom payments and pay more or less than the payment due. This feature can be accessed only on the website. | You can choose weekly, fortnightly or monthly repayments, so long as you cover 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 Pay 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 Pay, you must: ✔️ Be over 18. ✔️ Be an Australian citizen or permanent resident. ✔️ Have a verified Facebook, PayPal or online banking account under your name. ✔️ 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 |
Do Afterpay and Zip Pay 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.
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Our expert says: Don't get caught in the spiral
"Afterpay and Zip Pay may start off by giving you 'low' credit limits but it's really easy to get caught in a spiral. Once the money is seemingly available it can encourage people to spend more on. Just because you're able to pay off the cost later, doesn't mean you'll be able to more comfortably afford it later. Buy now pay later should only be used as an emergency for things you actually need."
Frequently asked questions about Afterpay vs Zip Pay
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Need an answer quick (haha finance assignment) Is ZipMoney a ‘Buy Now Pay Later’ or a ‘Personal Loan?’
Hi Jack,
Thanks for your comment. I hope you are doing well.
Zip Pay is a buy now pay later payment scheme that lets you purchase items you love and pay later how you choose to repay. You can choose a weekly, fortnightly, or monthly repayment schedule. A minimum monthly payment of $40 is required. You can learn more from our Zip Pay review page.
Hope this helps and feel free to reach out to us again for further assistance.
With care,
Nikki
I thought they were the same thing until I saw this comparison. Thanks for doing that. Zippay seems to be a lot more complicated by the looks. The $6 monthly fee is charged the first day of the following month from the date of your purchase, which means if I purchased something on the last day of the month, the next day I will be charged a $6 fee?
Hello Alex,
Thank you for your comment.
The $6 is called a monthly fee that is applied only at the end of the following month from the date of your purchase. To avoid the $6 monthly fee, you need to pay off your purchase by the end of the month you receive your statement.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn
Which is better for my business zip pay or after pay I sell standup paddle boards range in price from $800 to $1400 ?
Hi Ocean coast sup,
Thank you for your question.
Though we are a comparison website, we do not provide specific product recommendations, we can help guide you through the process of comparing options. We are on the right page to compare both Afterpay and ZipPay but the decision still rests on your shoulders on what would be better for your business. Hope this helps!
Cheers,
Reggie
I read on a reply that zipPay loans up to $1,000 but on Supercheap Auto site it says zipPay loans up to $8,000 then on another site it says $10,000. Which of these is actually correct?
Hi Mark,
Thank you for getting in touch with finder.
Regarding your enquiry, I am afraid that you might have confused yourself between zipPay and zipMoney.
With zipPAy, you can get approved for up to $1000 only while with zipMoney, you can get approved for over $1,000 and they identify the maximum limit they can offer you, based on the information you provided. With zipMoney, if your approved limit doesn’t cover the cost of your purchase, you’ll need to make an additional payment (a copayment) at checkout. You may be eligible for a limit increase on your zipMoney account once you’ve been using your account for at least 6 months and have a history of successful repayments.
As a friendly reminder, we do not represent any company that we feature on our pages. It is best to contact zipMoney for further help/enquiries.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
I’m just wondering what the maximum amount that you can spend on zipPay would be, please?
Thank you.
Hi Kerry,
Thank you for getting in touch with Finder.
The maximum loan amount in zipPay is $1,000. Check out our review page for zipPay interest-free payments to learn more.
I hope this helps.
Have a great day!
Cheers,
Jeni