We live in a time where we can buy most things at the click of a button. And now, we can walk away without paying for it all upfront if we don’t want to!
AfterPay is the Aussie darling that everyone knows, but there are 7 alternatives and most of them are listed on the Australian Stock Market!
Buy now pay later services (BNPL) have taken the world of digital payments to a new level. They allow you to delay full payment on something you buy until later AND without credit checks (unless you miss a payment).
CommBank and Apple have joined the market, offering customers payment in installments without the hefty interest fees of credit card purchases.
This means competition among the buy now pay later players, and big tech can’t afford not to be in the race.
PayPal prepare to launch Pay in 4 in Australia
Paypal has recently introduced their own buy now pay later service, Pay in 4. The interest-free micro-loan is available now for Aussies with a PayPal account at millions of online stores.
PayPal have taken advantage of the market – financing a purchase feels a lot less daunting than parting ways with $600 up front.
If you choose to “pay later”, PayPal pays the vendors upfront in full, and then you autopay the balance in 4 installments: a down payment on the spot, and the remaining 3 payments every two weeks.
This might make you think again about walking away from that $200 pair of shoes.
Aussie company Afterpay to be bought by Square
A leading contender in the race is US financial tech company Square. The company already offers buy now pay later, Point of Sale and payment services, but by merging with Afterpay, they’re seeking to grow their international customer base.
Square is taking advanage of the growing buy now pay later market and consumer shift away from traditional credit.
The merged companies may even launch their own series of “pay later” products for their online payment epicentre.
Buy now pay later services for small and large businesses
What does this mean for business owners? Offering a buy now pay later option can showcase that you’re meeting your customers needs.
Aussie company QuickFee offers buy now pay later financing for professionals like accountants and lawyers.
Using QuickFee, clients enter an invoice number, the total amount of the service, and then the QuickFee system will simply deduct follow-up payments from a credit card.
To ease their credit risk concerns, QuickFee pre-authorises and holds the total amount of the the customer’s service fee on their credit card.
WizPay integrations for your business website
WizPay offers its payment services with competitively low merchant fees and a range of plugins for integration onto a website.
If you’re using WordPress for your online business, for example, you can use the WooCommerce plugin to integrate WizPay onto your site.
WizPay and other payment companies that offer buy now pay later, can help drive traffic to your website and build awareness of your brand. Many of these companies have their own shopping apps where merchants are listed, giving your business free exposure to generate new leads and paying customers.
Starting or building an online business?
If you’re starting a or growing a business, it’s important to get your payment options and digital marketing right.
With more payment service companies offering buy now pay later, you may have to cater your marketing to your payment company’s user network.
People are starting businesses more than ever before, and this competition means you need the right resources and support ro get your business customised to your clientelle.
Explore the Startup Academy Cloud Training Package to get your business up and running, broadcast your message, and build a community of clients.
Other Buy Now Pay Later News
- Commonwealth Bank of Australia now offer StepPay to their merchants
- Fatfish Global (listed on the ASX) have a number of BNPL technologies that they are offering to South Each Asian consumers
- WizPay is owned by ASX listed Credit Corp Group Limited
- ZipPay is the second biggest pure play BNPL public company
- Humm has increased their Net Profit After Tax by 160.2%
- Sezzle and splitit are both listed ASX companies offering BNPL service
Reconciling Buy Now Pay Later Accounts using Xero
Entrepreneurs are notorious for looking for the next “shiny object” and one of the reasons that established payment providers will gain traction and market share is because business owners don’t need to create another “bank account” that needs to be reconciled.
Bank reconciliation is one of the arduous tasks that accounts staff do at the end of each month and the more payment accounts you have the more work and cost is involved. Master your bank reconciliation with Xero Beginners Certificate Online Training Courses from National Bookkeeping Career Academy.
