According to Zip, consumers are continuing to turn their backs on more traditional payment options, in favour of interest free ‘buy now, pay later’ (BNPL) platforms
Gone are the days when consumers only had the choice between cash or card when shopping. Over the past few years, Buy now pay later (BNPL) providers, like Zip, have well and truly captured the attention of Aussie consumers and the market continues to grow.
According to Zip, Australian consumers are increasingly turning to BNPL as the service allows them to purchase goods or services and pay for them in instalments over a period of time. Unlike traditional credit cards, purchases made with most BNPL providers are interest free.
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Data sourced from YouGov indicates that motivations to use BNPL include spreading the purchase over time, allowing shoppers to purchase something they might not otherwise be able to afford, helping to budget as well as interest free repayments.
Zip explains that BNPL allows customers to make large purchases without having to pay the entire amount upfront, which can help with cash flow.
The YouGov report also reveals that approximately 25 per cent of Australians have used a BNPL service and Zip says the high uptake has a lot to do with the ease and convenience of using these services. Zip Pay customers can add their Zip card to Apple Pay or Google Pay to pay for anything, as long as the store accepts contactless payments.
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Customers can choose from flexible weekly, fortnightly or monthly repayments, which are automatically direct debited from the payment method that was added in the initial sign up.
There is no denying the Buy now pay later (BNPL) industry has changed the payments landscape in Australia, allowing consumers to spend and budget in new and more convenient ways.
In addition to offering BNPL, Zip also offers business loans. To learn more about the products and review terms and conditions, contact Zip directly.
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