Find out how Openpay's interest-free payment plans work to see if they will work for you.
Openpay is an innovative online and in-store payment solution enabling you to purchase now and pay later, with no interest. Openpay is available in Australia and New Zealand, spanning across different industries including retail, automotive, home improvement, medical and more.
Find out how the platform works in this guide.
How does Openpay work?
1. Signing Up
Signing up for the service is simple. You first download the Openpay app from the App Store or Google Play Store. Then, you register basic information through the app, linking your new Openpay account to your Visa or Mastercard (credit or debit). Openpay will give you an instant response to your application and once approved, you can use Openpay right away.
You're also able to sign up for Openpay in-store when making a purchase.
2. Purchasing with Openpay
Once your Openpay account has been approved, you can use Openpay at more than a thousand participating merchants across Australia and New Zealand. These can be brick-and-mortar shops, home delivery businesses and online stores.
At the point of purchase, you need to choose Openpay as the payment option and select from among several repayment options using the app.
After selecting Openpay as your payment method, you'll receive an instant decision from the app and, once approved, you’ll be responsible for making the agreed repayments every two weeks. Repayments are automatically deducted as scheduled from your linked Visa or Mastercard. You can also make a payment early through the Openpay app.
What features does Openpay offer?
- Interest free. Openpay works like a no-interest loan. You pay back the amount of the purchase without needing to pay any interest.
- Borrow only as needed. Since you use Openpay at the point of purchase, you’ll never be stuck with borrowing more (or less) than what you need.
- Quick application. It’ll take just a few minutes to download the app and sign up. Everything’s done electronically and you’ll get a decision instantly.
- Instant in-store purchases. As long as the store is a participating business, you simply select Openpay as the payment method to complete the transaction.
- You choose the repayment plan. At the point of purchase, Openpay will give you several repayment schedule options. You can choose the repayment plan best suited to you.
- Automatic deductions. Unless you specifically choose to pay cash, check or money order, Openpay will automatically deduct the agreed repayment every two weeks from your linked Visa or Mastercard.
- Advance repayments allowed. You’re able to make early repayments at no extra cost.
- Payment reminders. Openpay sends out reminders before your scheduled repayments.
How much does using Openpay cost?
Openpay is interest free, meaning you won’t have to pay any interest on your outstanding balance. However, Openpay charges certain fees in the following cases:
- No interest. You will not be charged interest to use Openpay.
- Establishment fees. Establishment fees apply to higher purchases but only need to be paid by approved applicants.
- Plan management fees. These may apply to some plans and will be applicable to every payment.
- Late fees. Openpay may charge you a late payment fee if you fail to make repayments on time.
How do I sign up for Openpay?
Signing up for Openpay is quick and easy:
- Download the Openpay app from the App Store or Google Play Store.
- Fill out the electronic application within the app. This includes simple, basic identifying information.
- List the Visa or Mastercard (credit or debit) you want linked to your Openpay account and pay a small initial security deposit.
- Instantly receive an approval or rejection.
You can also sign up for Openpay at the checkout of participating retailers.
To be eligible for Openpay, you must meet the following criteria:
- Be at least 18 years of age
- Have a valid Australian or New Zealand ID
- Have a verifiable email address and two contact phone numbers
- Provide a valid Visa or Mastercard (debit or credit card)
Have more questions about Openpay?
How do I make payments?
Your payments will be automatically deducted from the credit or debit card you used to sign up. If you want to make an early payment, you can do so using the Openpay app.
When do I make payments?
You can choose your own payment schedule when you set up your account. However, you will always need to pay an initial instalment at the time of purchase. For most Openpay merchants and retailers, you will need to pay a 20% deposit at the time of purchase.
What if I need to make a late payment?
If you are unable to make a payment on time, you should contact Openpay directly to discuss your options.
How do refunds work?
If you need a refund of your purchase, any payments you’ve made will be returned to your linked credit card or debit card and any future instalments will be waived. Any processing fees already paid will not be refunded.
Is Openpay safe?
Openpay is PCI DSS Level 1 certified compliant meaning it uses the highest level of secure technology to help protect your information.
How does Openpay make money?
Openpay charges retailers to be listed on the platform and also makes money from fees charged to customers.
The buy now pay later sector is currently under an ASIC review. Find out more about this review.