Pay It Later

How does Pay It Later work?

Pay It Later is an interest-free buy now pay later platform offering split payments over 4 weeks. You can sign up for free and choose Pay It Later at checkout.

• Online. Select Pay It Later at checkout with one of its participating merchants. Once you’ve chosen Pay It Later as your payment option, you’ll be redirected to its website. You can complete your purchase there.
• In-store. To use Pay It Later in-store, the merchant will provide you with a QR code. You can scan this code using the Pay It Later app. Select your payment plan and receive an order confirmation.

For both online and in-store purchases, you will need to pay 35% of your order at the time of purchase. The balance amount will be split into 3 equal weekly payments. Payments will be processed automatically, and you will receive reminders prior to the due date.

What features does Pay It Later offer?

• No interest. Like other BNPL services, no interest will be charged for the service.
• Shopping limits. You’ll have a maximum shopping limit between $500 and $2,500.
• Split payments. Your payments will be split into 4 installments to be paid over 4 weeks. You will need to pay an initial 35% of the order at the time of purchase. You will then pay the balance in equal weekly payments over the next 3 weeks.
• Instant online approvals. If you haven’t signed up already, you can do so at the time of purchase. You’ll be redirected to Pay It Later’s sign-up page.
• Free sign up. You won’t be charged a sign-up fee to use the service.
• Automatic payment deductions. Pay It Later will automatically debit your account for the payment. You can nominate an Australian bank account or use your debit or credit card issued by Visa or Mastercard.
• Reminders. You’ll receive reminders ahead of your payment date, so you can make sure you have the funds in your account.
• Account management. You can manage your account through the app. You can use it to see your upcoming payments, your order schedule, make a payment and view your order history.
• Security. Pay It Later uses a PCI-DSS compliant system to process your payments. Its payment-processing partner is Stripe.
• Early repayments. You can make early repayments without charge.

How much does Pay It Later cost?

With Pay It Later, there are 2 costs you need to consider:

• The cost of the product you’ve purchased.
• Late fees.

If your payment is overdue by 24 hours, you will be charged a late fee of $10. Another $10 will be charged if your payment is overdue by 7 days. Pay It Later will work towards covering the amount you owe through automatic payment deductions and collection agencies. You may also be contacted via telephone. Pay It Later may report negative credit activity with a credit reporting agency if required. This can include late payments, missed payments, defaults or chargebacks.

No fees will be charged for early repayments.

There may be other charges if you request to move your payment schedule. This can be up to $25.

Does Pay It Later do a credit check?

Pay It Later claims it doesn’t perform credit checks. However, it does reserve the right to make inquiries with credit reporting agencies.

What should I be aware of with Pay It Later?

Pay It Later, like other BNPL services, can be part of your financial toolkit, but you should keep in mind the following:

• Change of mind service fee. If you changed your mind after purchasing a good or service, Pay It Later could charge you a service fee of $25.
• Overspending. Making payments in bite-sized chunks could make products seem more affordable. It may also be tempting to buy beyond your means. You are, however, entering into a credit agreement with the service provider. The provider pays your bill on your behalf, and you repay the provider back in instalments. You are bound to the terms of this contract, and so, regardless of the staggered payments and no-interest plan, you still have to pay up. If you’ve shopped beyond your means, you may have trouble paying back the loan. This could lead to late fees and even a black mark in your credit report. Pay It Later also reserves the right to use a collecting agency to recover its loss. To avoid this, you should ensure that you can comfortably make each payment. Treat BNPL as you would treat any other credit agreement – that is, with caution and prudence.
• Late fees and repercussions. If you miss your payment, you will be charged a late fee of $10. If you fail to make your payments after this, you’ll be charged a further $10. From this point, it can escalate to a black mark on your credit report and a credit collection agency knocking at your door. Pay It Later can also use the details you’ve provided, including your phone number, to contact you.
• Your credit score. Pay It Later reserves the right to report payment defaults to a credit bureau. This can negatively affect your credit score and your ability to get credit in the future.

Am I eligible to apply for Pay It Later?

To use Pay It Later’s services, you need to meet the following criteria:

• Be over 18 years old
• Have a valid and verifiable email address and Australian mobile phone number
• Provide a valid delivery address in Australia
• Capable of entering into a legally binding contract
• Provide Pay It Later with the information it requires to verify your identity.

How do I sign up to Pay It Later?

You can sign up for Pay It Later using its app. The app is available to download on Google Store and Apple Store.

You can also sign up on its homepage or at checkout with its participating merchants.