Giving your customers another way to pay for purchases can make shopping easier and remove barriers to purchasing. It can also translate to increased sales for you.
BPD websites have the ability to offer interest-free Buy Now, Pay Later options to your customers, such as zipPay / zipMoney, Openpay and Afterpay.
Along the same lines as old fashioned Lay-by, the customer pays for their purchase in instalments over a period of time. The difference with Buy Now, Pay Later is that they get their goods now, rather than waiting until the purchase is paid off.
While they all operate on a similar principle, there are some differences between the three options.
|Who||How it works||Fees and limits|
- zipMoney is a line of credit for larger purchases, generally valuing $1,000 or more.
- Customers enjoy a guaranteed 3 months interest-free period for all purchases, but the interest-free period may be extended up to 36 months by some retailers. (The interest-free period can vary by merchant and is confirmed with the user at the time of their purchase.)
- zipMoney repayments start from as little as $40/month, but are dependant on the credit limit. Repayments can be made monthly, fortnightly, or weekly. Customers can also made additional repayments at any time.
- Small establishment fee based on credit limit, which zipMoney will confirm at time of application and contract.
- $4.95 monthly account fee while there is an outstanding balance.
- Limit of $1,000 - $20,000 (subject to credit check and depending on what is offered by the merchant).
- Merchants pay a flat % fee per transaction.
- No setup fees, no monthly charges.
- Merchant service fee varies depending on trading volume and the length of the interest-free period .offered (for example, offering 6 months interest-free costs you less than offering 12 months).
- Minimum annual turnover of $500,000.
- Minimum trading history of 12 months.
- zipPay is an online shopping wallet of up to $1,000, always interest-free.
- First 60 days incur no fees.
- zipPay repayments start from as little as $40/month, and be made monthly, fortnightly, or weekly. Customers can also made additional repayments at any time.
- Funds are available for the customer to use across one transaction or many.
- Monthly account fee of $5 accrues if there is money owing at the start of the month.
- Limit of either $250, $500, or $1,000 per customer (determined by zipPay).
- Merchants pay a flat (%) fee per transaction.
- No setup fees, no monthly charges.
- Merchant service fee varies depending on trading volume (contact zipPay for further details).
- No lock-in contracts.
- Afterpay offers fee-free, interest-free credit for purchases
- Instant approval
- Repayments are made over 4 equal, fortnightly installments
- No fees are charged to shoppers, aside from late fees for missed repayments.
- No set credit limit. The amount a customer can spend is increased over time by Afterpay, once successful repayments have been demonstrated.
- Merchants pay a 4-6% fee per transaction.
- The percentage is set by Afterpay and is based on order volume and value. The more you sell through Afterpay, at increased value, the lower your % fee will be.
- Openpay allows customers to shop now and customise repayments to suit their schedule. There a various terms available (e.g. 6, 12, 18 months).
- Approval is subject to applicants already possessing either a Visa or Mastercard. Openpay reserve the right to run a credit check, which the applicant must consent to.
- No interest is charged to customers, but depending on the plan they select, a small management fee may apply to each repayment.
- In the case of high value purchases, an establishment fee may apply to the initial payment.
- Get paid in full (less fees) the next business day, minimising risk to your business.
- Merchants pay a fee per transaction. Contact Openpay for further details)
- Take advantage of access to analytics through the Openpay dashboard, providing insight into order data and customer behaviour.
Depending on your site's configuration, the user will see the total cost of the product, but also be presented with a Buy Now, Pay Later option with information about installments and a link to learn more.
|Minimum Version Requirements|
Dependent upon payment provider
Merchant Account with payment provider
|Ballpark Hours From CV (if opting for CV to complete self config component)|
|Ballpark Hours From CV (in addition to any self config required)|
|Third Party Costs|
Settings → Feature Management