Huge change to Afterpay ahead of Christmas – here’s what it means for you
A new Afterpay feature has been introduced to help shoppers limit their spending on the popular platform.
Customers can now select the ‘Spend Cap’ feature to ensure they stay within their budget by selecting how much they want to spend.
The useful feature must be below the customer-approved limit, but must be above $100.
Once customers select the amount of money they do not want to exceed, the spending limit is applied immediately.
The feature, which comes in time for both the Christmas and Black Friday sales, is the latest to be added to Afterpay to help customers stay in control of their finances.
Other features include Preferred Payment Day and No Upfront Payment.
Preferred Payment Day allows customers to choose the day their payment is debited from their account, such as their payday, which can help avoid late fees.
The No Upfront Payment feature is available to approved buyers and allows them to purchase items under $500 without any upfront payment.
The new Afterpay feature will allow Australian shoppers to set a limit on their spend so they don’t go over their budget – which will be useful for Christmas shopping (pictured a customer using Afterpay in store)
Rescheduled payments and early payment are also an option for shoppers who need an extra week without incurring late fees.
Afterpay executive vice president and ANZ country manager Katrina Konstas told Daily Mail Australia the new features demonstrate the “commitment” the buy now, pay later (BNPL) platform has to the “choice and flexibility” of its customers.
“We prioritize the financial well-being of our customers and strive to provide tools that support economic access and empowerment,” she said.
“Our new Spend Cap feature is a testament to our mission to promote responsible spending so our customers can enjoy the benefits of BNPL with confidence and peace of mind.”
It is hoped that the Spend Cap feature will promote responsible spending habits and give shoppers a sense of control.
Ms Konstas explained that Australians who start doing their Christmas shopping on the platform now will complete their repayments by Christmas or Boxing Day – meaning they can avoid a debt hangover in the new year.
Afterpay is widely available across Australia and recently announced they have partnered with IKEA to allow Australians to budget for furniture purchases in-store or online.
The Spend Cap feature was announced in September to help promote responsible spending habits.
Despite high cost-of-living pressures, 59 percent of Aussies still plan to spend as much or more this Christmas as they did last year.
But the Australian government plans to crack down on ‘buy now, pay later’ services, with new laws set to be proposed in Parliament.
The government says BNPL providers are not adequately regulated by Australia’s consumer credit laws, meaning the companies are not subject to affordability checks like those required to get credit cards or loans.