Afterpay introduces major payment method update: ‘Exciting news’

Afterpay, the popular buy now pay later service, has announced significant changes to its payment structure that will give customers more flexibility and control over their purchases. Currently, customers are required to pay 25 per cent of the purchase price upfront and the remaining instalments are due every two weeks. However, starting June 18, users will have the option to choose the day of the week they make their payments.

In addition to this, certain customers will be able to delay their first payment by up to two weeks on eligible orders. Afterpay stated in a memo to customers that more users will have access to this benefit, but the company reserves the right to grant access based on individual circumstances.

The change in payment terms aims to help customers align their payments with their pay cycles, reducing the likelihood of missed payments. University of Sydney Business School Associate Professor Andrew Grant praised the move, citing that mismatched pay cycles often lead to payment delays.

Afterpay has specific criteria for customers who wish to delay their first payment, including having held an Afterpay account for over a year, not having more than 5 payment declines in the past 6 months, and not having received financial hardship assistance in the past year.

These changes come at a time when BNPL services are under scrutiny for contributing to growing debt issues. A report from Anglicare Tasmania highlighted the increasing number of people seeking help for BNPL debts, with the average debt amounting to $2,200. Despite the criticism, Afterpay hopes that these changes will help customers manage their finances more efficiently.