Our customers often have questions about using buy now pay later, and how it differs from taking out a personal loan. If you’ve ever wondered if you can use it to take care of your bills or transfer it to your bank account, Rapid Loans has done the deep dive on some common questions about this buy now pay later platform.
Can I transfer Afterpay to my bank account?
Although Afterpay was designed to make your shopping experience smoother, you can’t transfer any money from Afterpay to your own bank account. Since Afterpay isn’t like a personal loan or line of credit, you actually pay a quarter of the amount upfront and the remaining three payments are spread out over six weeks.
Can you use Afterpay for anything?
Initially, Afterpay was mainly for online shopping but you can now use it for online and in-store purchases at over 75,000 retailers. It’s worth noting that certain merchants are only available to shop at within the Afterpay mobile app. Despite this, it seems as if there’s a retailer for everyone whether you’re shopping at Foot Locker, Booking.com, Ampol, Big W and more.
To shop in-store with participating retailers, you’ll need to set up the Afterpay Card which is added to your digital wallet. When you’re shopping in-store, just tap to pay with Apple Pay, Google Pay or Samsung Pay. The retailers who offer Afterpay are actually charged a small fee for each transaction which means that the cost of using the platform is often built into the price of your product.
You can also use Afterpay Plus through the app although this digital card is available exclusively to existing customers on an invitation-only basis and currently has a $9.99 AUD monthly fee. Ouch!
Do you need money in your account to use Afterpay?
We had to be the bearer of bad news but yes, you need to have some money in your account to use Afterpay. This is because you’ll need to pay the first instalment at the time you make your purchase. After you’ve been using Afterpay for a while though with no missed payments, you’ll be able to purchase with no upfront payment – meaning your first of four payments is debited two weeks after the purchase.
When it comes to paying back your instalments, Afterpay has an autopay option so it takes the money from your card on the instalment due date so you don’t miss a payment. If you can’t make one of your instalment payments, you’ll likely be hit with late fees or overdraft fees which can be up to $35. Your account will also be paused, you won’t be able to buy anything else using the provider until your payments are up to date and your spending limit will likely decrease.
Can you pay BPAY bills with Afterpay Australia?
Gone are the days of paying bills in person. BPAY is a well known online banking payment method, currently offered by most financial institutions.
The payment system works by allowing you to choose which account you want to pay bills from and schedule set dates to pay your phone bill, internet, electricity, gas, water, rates, credit card, insurance and more.
Although BPAY is offered by over 60,000 businesses, it does not accept payments from Afterpay.
Can you use Afterpay to pay utility bills?
Afterpay is more about treating yourself than keeping the lights on so you can’t use it for things like utility bills or other services that don’t accept Afterpay. Basically, it’s not meant to be used for paying bills such as energy payments, phone plans, life insurance or car loans.
The good news is that most utility providers offer payment plans that allow you to spread your payments out over, making your payments more manageable and less stressful. You could also try setting up a direct debit or using a budgeting app instead.