Shop online and there’s a very good chance that you’ll see an offer to “Buy Now Pay Later.”
The coronavirus pandemic has thrown normal spending habits out the window. With many Australians continuing to access Government coronavirus supplements, and landlords being pressured into decreasing rent payments and offering forgiveness plans, it seems many consumers are just trying to get by(Zip ).
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As consumers cast off the idea of traditional credit, Buy Now Pay Later (BNPL) providers are leading the way in new payment plans. This has led a shift in mindset for Australians who are thinking of using their interest-free BNPL accounts to pay for essential bills when normally they would use these services exclusively for product purchases.
Although some might see Buy Now Pay Later as another form of credit, there are safeguards in place for consumer protection. Hardship assistance programs are common among BNPL providers as their client base is increasingly affected by recession and loss of employment. With a movement away from conventional credit sources, consumers look for new interest-free payment options within the BNPL industry.
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While Australian’s adjust to their new normal, Buy Now Pay Later companies have been thinking up ways to adapt to the current market. For example, Australian-based BNPL provider Zip now offers the opportunity to pay for bills in interest-free instalments. Zip allows users to pay for their bills anywhere that BPAY® is used, and then pay back the cost over a scheduled payment plan.
Interest-free payment plans such as Zip’s may appeal to those who are looking to cover their essential costs like household bills without the stress of a large upfront expense. For some living week to week, this small delay on their payments could be the respite needed to successfully make it to the next payday.
