What is afterpay?
For those who don’t know, Afterpay is a buy now and pay later service geared toward millennials due to their proclivity for impulse purchases and the desire for immediate gratification. According to marketing research by Roy Morgan, millennials account for 40.6 percent of all buy now, pay later transactions.
There is no doubt that Afterpay and other buy-now, pay-later services have revolutionized the way consumers pay for purchases. But what are the afterpay benefits? Is this a problem you’ll face in the future? Here are a few of the critical advantages of using Afterpay to make purchases.
Easy integration within the store
Afterpay is linked into an online store’s checkout, making it easier for customers to buy anything on impulse. You simply select Afterpay as your payment method at the checkout instead of your regular credit card. As far as payment plans go, they’ll work it out and email it to you. As soon as you’ve set up an Afterpay account, you’ll never have to get out of bed again to fetch your debit or credit card. That was very easy.
To take advantage of Afterpay, you don’t need to shop entirely online. Most retailers in Australia offer Afterpay in-store. Using Afterpay is as simple as selecting a barcode icon at the bottom of the app’s home screen, bringing your item to the counter, and scanning it at the register. At the register, you’ll have to hand over 25 percent of your purchase amount, whereas online, you won’t be charged the first installment until two weeks after you’ve been an Afterpay member for a while.
The approval procedure is quick and simple.
Creating an Afterpay account is so straightforward that it can be completed in a matter of seconds. Just like joining up for any other website, there are only a few simple steps you’ll need to take.
Terms with no interest
You don’t have to pay interest on your fortnightly payments if you use Afterpay. Aside from the purchase price and a $10 late fee, Afterpay is free for customers. This is a significant saving over traditional credit cards, which charge interest rates as high as 20%.
Staggered payment plans are also available.
As a result, Afterpay simplifies the process of creating and sticking to a payment plan by dividing your bill into four equal fortnightly installments. It’s as simple as making sure your debit or credit card has enough money in it so that you don’t end up being charged a $10 late fee.
Good alternative to a credit card in some cases.
According to Afterpay research, millennials are 37% less likely than older generations to use a credit card because they see it as too hazardous and expensive. According to the same report, millennials are increasingly turning to buy now and pay later items to manage their finances.