DO AUSSIES KNOW THE RISKS AFFILIATED WITH 'BUY NOW, PAY LATER' SERVICES?

Money surveyed 1,005 Australians to gauge how many Aussies have previously used a ‘buy now, pay later’ (BNPL) service such as ZipPay or AfterPay when shopping.

The study also sought to uncover how much Australians really know about BNPL services. Respondents were asked to identify which of the statements they believed to be true. Respondents could select more than one of the following statements:

The pool of survey respondents matches the age and geographical spread of the Australian population. 

Money asked responders whether they have ever shopped online using a ‘buy now pay later’ (BNPL) service, such as ZipPay or AfterPay.

The survey found that majority of respondents (59%) have previously used a BNPL service when shopping online, opposed to 42% which stated they have not used such services.

There is a notable difference between the age groups when it comes to using BNPL services. The survey found that younger respondents were most likely to use these services when making online purchases. Specifically, 77% of 18-30-year-olds said that they have previously used a BNPL service. This is followed by 69% of 31-40-year-olds and only 39% of respondents over 50.

Across the states, there is a similar consensus for the use of BNPL services, such as ZipPay or AfterPay, when shopping online. Respondents in NSW and WA are equally most likely to have used these services before, with 61% stating so. This is followed by:

When asked to select the statements on BNPL services that respondents believe to be true, younger respondents are most likely to believe that BNPL is not a form of credit, at 28%. This compares with:

53% of 31-50 years olds believe that BNPL providers are bound by the same consumer protection laws as banks. This compares with:

Interestingly, younger respondents who are more likely to use BNPL services are less likely to believe that they will get charged a fee for late payments. 12% of younger respondents believe they will not be charged a fee for late payments if they use a BNPL service. This compares with:

16% of respondents over 50 years of age believe that their bank or credit card supplier will not know if they have a BNPL account. This compares with:

Respondents over 50 are also most likely to believe that missing a payment for a BNPL service affects their credit score (68%). This is followed by:

By state, NSW respondents are most likely to believe that BNPL is not a form credit, at 27%. This compares with:

The survey found a similar consensus across the States when respondents were asked if they think BNPL providers are bound by the same consumer protection laws as banks. An equal percentage of responders in Victoria, Queensland and West Australia believed this statement to be true (48%). This is followed by:

When asked if survey responders believe they will not be charged a late fee for untimely payments, Victorians were most likely to select this statement as true, at 11%. This compares with:

18% of West Australians believe that their bank or credit card supplier will not know if they have a BNPL account. This compares with:

WA and SA respondents were most likely to believe that missing a payment for BNPL service affects their credit score, at 69%. This compares with: