What are the major interest-free payment options available in Australia?
We hear the phrase “buy now, pay later” more and more these days. There is no doubt that Australians have embraced this concept when it comes to retail shopping. It offers the opportunity to enjoy a new product without having to pay the full amount upfront.
There are now a stack of interest-free payment options in Australia, so let’s dive in and summarise the big players!
Let’s discuss these major system of interest-free payment and see how they work.
1. Afterpay
Afterpay seems to be the most popular interest-free payment option in Australia with 2.9 million customers across Australia and New Zealand.
It typically involves the splitting of your purchase into 4 instalments, and the remaining payments every fortnight. By making payments on time, there will be no additional cost – making your purchase truly interest-free!
- Available on purchases online and in-store
- 4 equal fortnightly instalments
- Late payment fees – initial $10 late fee, and a further $7 if the payment remains unpaid 7 days after the due date.
- For each order of $40 or above, the total of the late fees that may be applied are capped at 25% of the original order value or $68, whichever is less.
- See Afterpay’s full terms of service
Bedding companies that use Afterpay include: Eva, Snooze, Original Mattress Factory, and Sleep Republic.
2. Zip
Zip (or more accurately Zip Co Limited) is another popular and well-known financial technology company in Australia. Zip offers ‘zip pay’ for everyday purchases (under $1000) and ‘zip money’ for larger purchases (over $1000).
Bedding companies that use Zip Pay include: Amart Furniture, Fantastic Furniture, and Macoda.
Zip Pay
Bedding companies that uses Zip Money include: Beds n Dreams, Sleeping Duck, Ergoflex, and Macoda.
Zip Money
3. Humm
Humm is another new and popular interest-free finance option that allows you to break up your repayments into 5 or 10 repayments. Humm calls these repayments, ‘slices’.
- Available on purchases online and in-store
- Under $2000
- Choose to repay in 5 or 10 ‘slices’
- Weekly or fortnightly repayments
- Monthly fee: $0 (5 repayments) | $8 (10 repayments) | Late Payment fee: $6
- See full fees and charges
Bedding companies that uses Humm include : Beds R Us, Eva, and Myer.
4. Laybuy
For those of us who choose to use Laybuy, it involves 6 (equal) weekly repayments over the span of 6 weeks. As with other interest-free payment options, late payment fees apply.
- Available on purchases online and in-store
- 6 equal payments (6 weeks)
- Weekly repayments
- First instalment when you place your order
- Late payment fee: $10 (for each payment you fail to make on time)
- See full fees and charges
5. Openpay
Openpay is another interest-free payment option available to Australians. It involves an initial 20% payment and payments can be scheduled through the openpay app.
- Available on purchases online and in-store
- Initial payment required (20%)
- Plan management fee can be charged
- Schedule your payments through the app
- Late payment fees apply
- See how it works
Bedding companies that uses Openpay include: Chiropedic, Beds R Us, Regal Sleep Solutions, and Eva.
As you can see there is now a wide range of interest-free payment options that offer finance on your shopping. As long as you plan your cash flow and make your payments on time, these companies offer a useful, interest-free service that has become extremely popular.
Buying a new mattress using one of these interest-free groups is certainly something to consider. If you have any queries about finance on your new bedding purchase, comment below or please contact us!
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