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Top 7 Apps Like Afterpay Australia: Best BNPL Platforms for 2024
By
Will Ellis
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Last Updated on October 8, 2024
In recent years, Buy Now, Pay Later or BNPL services have transformed how Australians shop, offering a flexible alternative to traditional credit cards. These platforms allow consumers to split payments into manageable instalments, which can be quite appealing to budget-conscious shoppers.
Their seamless integration with major retailers and e-commerce sites has continued to fuel the rise of BNPL services. They’re making it easier than ever to make purchases without upfront costs.
Among the most well-known BNPL platforms is Afterpay, a pioneer in the industry that has set the standard for convenience and accessibility. Its widespread adoption across countless retail partners has made it a go-to option for Australians looking for flexible payment solutions.
With Afterpay’s massive influence, many similar services have emerged, offering a range of features and options for consumers.
In this article, we’ll explore the top apps like Afterpay. We’ll also be shining the light on Afterpay itself so we can see why we position these all to be the best BNPL platforms for 2024. Let’s begin:
Table of Contents
- TL;DR
- Criteria Breakdown Summary
- Afterpay
- Zip
- Klarna
- PayPal Pay in 4
- Affirm
- Sezzle
- Splitit
- Humm
- Notable Mentions
- Frequently Asked Questions
- Final Thoughts
TL;DR
- Afterpay remains the top BNPL choice with wide acceptance, instant approvals, and no interest or credit checks.
- Zip offers flexible options for small and large purchases.
- Klarna provides an exclusive shopping app with exclusive deals.
- PayPal Pay in 4 integrates seamlessly with existing PayPal accounts.
- Affirm stands out for transparent pricing and longer repayment terms.
- Sezzle offers credit score improvement alongside interest-free payments.
- Splitit uses existing credit cards for instalments without additional credit checks.
- Humm offers high spending limits and long repayment terms for major purchases.
Criteria Breakdown Summary
So, how do different BNPL services compare? To have a fair comparison, we decided to pay attention to five main criteria.
Repayment Terms
How will you repay your debt? Different services offer various plans from interest-free payments to flexible instalment options, depending on the duration.
Interest and Fees
BNPLs don’t offer this convenient service for free. However, sometimes, the fees are non-existent or low if you repay your debt on time.
Credit Checks
This is a major concern, as some people have problems with their credit scores that make them less eligible for financing options. Some BNPL services perform a soft credit check, while others don’t even do one.
Spending Limits
How much money are you allowed to spend? This is an important question, especially if you want to use a Buy Now Pay Later service for a large purchase.
Merchant Availability
Before you commit to a BNPL platform, you want to check the list of available merchants. If you want to buy specific products, you want to ensure you can use this service.
Afterpay
Best Known for Pioneering BNPL in Australia
As mentioned, we couldn’t start off our list without mentioning this incredible pioneer. Afterpay leads the industry of BNPL in Australia and we’ll be using it as our benchmark for this post. Afterpay revolutionised the BNPL scene in Australia, becoming the most widely used service. Their website also shows they have delivered billions of dollars in incremental sales and benefits to Aussie businesses.
The platform’s appeal lies in its simple, user-friendly model, allowing shoppers to split their purchases into four interest-free payments over six weeks. With no credit check required, Afterpay offers accessibility to a broad range of consumers who can join instantly.
What sets Afterpay apart is its proprietary risk assessment algorithm, which carefully evaluates transactions before approval, ensuring responsible lending. It also seamlessly integrates with major e-commerce platforms like Shopify and Magento.
Through its mobile app, users can make in-store purchases via barcode, providing added convenience. Additionally, merchants benefit from an analytics dashboard that tracks BNPL sales performance.
Features
Afterpay is an excellent solution for someone who wants to split their payments over a short period. Any purchase can be split into 4 equal instalments, each due every two weeks. Instant approvals make the app more appealing.
The good news is that there’s no interest fee. You’ll only be charged a fee if you miss a payment. However, you can always activate automatic payments and reminders to avoid delays.
But that’s not all. People can instantly split their purchases without having their credit score checked, manage their payments, see their spending limits based on their payment history, and browse partnered retailers. Moreover, buyers can benefit from exclusive offers made to Afterpay users.
So, what happens when you always pay on time? You become a trustworthy customer and your credit limit increases—which can be a double-sided weapon sometimes.
As for retailers and businesses, Afterpay features merchant integration via API or platform plugins, allowing businesses to quickly join.
Pros
- No interest charges ever
- Widely accepted at major retailers
- Easy-to-use mobile app
- No credit check required
Cons
- Late fees can add up quickly
- Limited flexibility in payment schedule
- Lower spending limits for new users
Criteria Evaluation
- Repayment terms: 5/5
- Interest and fees: 4/5
- Credit checks: 5/5
- Spending limits: 4/5
- Merchant availability: 5/5
Community Reviews and Expert Recommendations
People who use Afterpay usually praise the platform’s simplicity, as it allows them to make larger purchases without exceeding their credit card limits. Sonia S explained on TrustIndex how it made her life easier, ”Been using it for a year and a half now! As long as you pay them, you can continue to use their service, and your amount to borrow gets higher!”
Melissa T on Capterra agrees, “I love that you can shop at tons of different places, both online & in person, & instead of paying what could likely be a hefty amount you can split the total into 4 more easily affordable payments with no interest charged.”
However, Grecis Cola wanted to warn TrustPilot readers against missing payments, “I had an accident, as a result, I didn’t have access to the phone, and I was one day late with the payment. They lowered my credit and also blocked my account!”
Overall, experts agree the app can facilitate online purchases and help people make larger purchases. Moreover, it’s a good service that increases retail sales and supports Australian businesses.
Nevertheless, it should be used cautiously, as some people might rely on it too heavily and eventually spend more than what they can afford.
Price
Afterpay is free as long as you pay on time. However, you’ll be charged a late fee of $10 and then an additional $7 if you miss your timely payment.
Zip
Best Known for Flexible Payment Options
Zip is a convenient BNPL service that offers dual services to cater to the needs of all clients, whether shopping in-store or online. It offers two main products—ZipPay is similar to Afterpay with interest-free payments for small transactions. Zip Money is another product that suits larger purchases as it offers more financing options.
This dual versatility makes Zip appealing to more shoppers, thanks to its flexibility. The user-friendly app is another plus, as it provides easy payments and fast-tracking of transactions.
Although Zip does a soft credit check, it doesn’t hurt your credit score as it features automated credit decisions for quick and instant approvals.
Features
In Australia, Zip has three payment options. ZipPay is suitable for everyday purchases with a limit of $1,000, and it’s always interest-free. This account has a fee of $9.95 but it’s waived if you pay off your purchase before the due date.
Zip Plus offers a spending credit of $4,000 with a 12.95% interest fee if your spending exceeds $1,500. It charges an account fee of $9.95 but it’s waived if you don’t have any pending payments.
Zip Money is a payment plan for larger purchases, providing a $5,000 spending limit. The account fee can be up to $99, depending on your credit score upon approval, which also determines your financing terms. However, each payment has an interest-free period of at least three months.
The Zip app helps users manage repayments easily offering a comprehensive view of their financial activity. The app is user-friendly and makes online and in-store shopping more accessible.
Zip uses machine learning algorithms to provide personalised credit limits, ensuring each user gets an offer tailored to their financial profile. Multi-factor authentication enhances security, keeping accounts safe.
Real-time balance updates and seamless payment processing ensure smooth user experiences, while API integrations streamline merchant onboarding.
Pros
- Options for both small and large purchases
- Potential for longer interest-free periods
- User-friendly mobile app
Cons
- Monthly account fee for Zip Pay
- Interest charges apply after interest-free period on Zip Money
- Fewer merchants than some competitors
Criteria Evaluation
- Repayment terms: 4/5
- Interest and fees: 4/5
- Credit checks: 4/5
- Spending limits: 4/5
- Merchant availability: 4/5
Community Reviews and Expert Recommendations
So, how does Zip perform compared to other BNPL services? Ed A. on G2 admired how fast and seamless this application is,” Easy and cheap way to spread out purchases. Everything is quick and online, and the application is fast and seamless.”
An anonymous user on G2 highlighted a big plus,” User-friendly, great for online shopping. Never does a hard pull on credit.” This means that whether you get accepted for a financing plan or not, your credit score won’t be impacted.
However, an anonymous shopper on Trustpilot wasn’t impressed,” You charge a fee to use your service. None of the other “afterpay” companies do that.”
Experts agree that Zip’s credit practices are impressive and it uses encryption protocols throughout the transaction process to protect customers from fraud. Using Zip doesn’t impact your credit score in the long run and it has a well-established algorithm. However, the account fee is an obstacle to some users.
Price
There’s no instalment fee for Zip Pay, and the interest fee for Zip Plus and Zip Money depends on the size of the purchase and the financing option.
There’s a $9.95 account fee that applies to all accounts, as long as you have a pending balance.
Klarna
Best Known for Shopping App and Deals
Klarna is a flexible shop now pay later service that allows people to repay their purchases in interest-free instalments. However, it goes beyond traditional BNPL services by integrating a comprehensive shopping experience within its app.
This platform offers flexible payment options, including extended financing terms for larger purchases. The app also provides useful features like price drop alerts and exclusive deals from partnered retailers. For most transactions, Klarna conducts a soft credit check that doesn’t impact your credit score.
But that’s not all. As one of Afterpay competitors, Klarna leverages AI to deliver personalised shopping recommendations, enhancing the user experience. It partners with major retailers for seamless in-app purchasing and utilises open banking integration to securely verify user accounts.
Additionally, Klarna employs machine learning algorithms for advanced fraud detection.
Features
Klarna offers instant credit approvals, allowing customers to shop any time they like. You can choose to split your payment into 4 interest-free instalments, pay the entire amount in 30 days, or opt for extended financing. This is pretty much what most companies like Afterpay deliver.
However, the app takes things a little further with wish lists, price tracking, and access to exclusive offers from partnered retailers, enhancing your shopping experience with Klarna. For in-store purchases, Klarna provides a one-time virtual card for added convenience.
Klarna uses real-time credit decisions powered by proprietary risk models, providing clients with a spending limit that actually matches their ability to pay.
The platform integrates with various payment gateways, while merchants can apply customizable approval rules to tailor the checkout experience. This makes Klarna more appealing to Aussie retailers and businesses.
Pros
- Versatile payment options
- Shopping app with deals and price tracking
- Can be used at most online retailers
Cons
- Interest charges on longer-term financing
- A soft credit check required
- Limited in-store availability in Australia
Criteria Evaluation
- Repayment terms: 5/5
- Interest and fees: 4/5
- Credit checks: 4/5
- Spending limits: 4/5
- Merchant availability: 4/5
Community Reviews and Expert Recommendations
Judging Klarna based on what actual users say about this app is a smart decision. Ishua Garcia on Trustpilot explained that it saved the day,” Klarna has made my purchases run smoothly, I’ve had the freedom of buying what I need when times are not that great financially speaking.”
Sussana on ProductReview explained that sticking to a spending limit without increasing it like other BNPL services made Klarna her favourite app,” l found Klarna the best of the apps of its kinds. l found no stress or negative effects of using it. l like how l can set a limit and stick to it.”
Kat D. on ProductReview faced some issues with customer support,” I had an issue with the one-time card system where the details weren’t generating at checkout. I called customer service and spoke to someone while I worked the problem out myself without their assistance. While on this call I was now no longer able to pay in 4 equal I instalments but had to pay 50% upfront on purchases over $50 rendering my account next to useless.”
Industry experts had good reviews about Klarna, praising the app for its seamless operation. In fact, the company’s website published business details to enhance transparency, emphasising that 95% of payments were made on time. However, like other BNPL companies, Klarna is urging lawmakers to set new rules for these services, separating them from credit cards.
Price
Klarna is free for all purchases that cost up to $1,000 when payments are made over 4 instalments. You can also choose other financing options where you don’t pay anything at checkout and make monthly interest payments of up to 33.99%, depending on the amount paid.
PayPal Pay in 4
Best Known for Integration with PayPal
You’ve probably used PayPal to make online payments, but it offers an integrated BNPL service that allows you to finance your purchases. PayPal Pay in 4 utilises PayPal’s extensive infrastructure and lets users split their purchases into four payments with no interest or fees, as long as payments are made on time.
A key advantage is its seamless integration with PayPal, meaning no separate app is needed—everything is managed within your existing PayPal account, making it widely accepted across its merchant network.
From a technical standpoint, PayPal Pay in 4 benefits from PayPal’s advanced fraud prevention systems. It integrates smoothly with PayPal’s digital wallet and One Touch technology for faster checkouts.
The service leverages PayPal’s vast network for instant acceptance, while real-time transaction risk assessment ensures secure transactions.
Features
PayPal Pay in 4 allows you to split any online purchase into 4 bi-weekly payments, as long as the amount is between $30 to $1,500. No interest or late fees apply, making this option suitable for small purchases.
For larger transactions up to $10,000, you can choose to pay your instalments monthly for up to 24 months for an interest rate. However, late fees don’t apply. You can activate autopay at any time to avoid missing a payment.
PayPal Pay in 4 is available for millions of merchants and allows customers to transact in any of the currencies accepted by PayPal. The automated transaction scheduling and processing facilitate your purchase, while you can also use the resolution centre for any disputes. Nevertheless, it doesn’t work for in-store transactions.
Regardless of your payment plan, PayPal Pay in 4 won’t affect your credit score, and it uses machine learning to personalise your spending limits. Merchants can also use APIs to access PayPal Pay in 4 different offerings.
Pros
- Widely accepted wherever PayPal is available
- No interest or fees if paid on time
- Integrated with existing PayPal accounts
Cons
- Lower maximum purchase amount than some competitors
- Limited flexibility in payment schedule
- Not available for all PayPal transactions
Criteria Evaluation
- Repayment terms: 4/5
- Interest and fees: 5/5
- Credit checks: 4/5
- Spending limits: 3/5
- Merchant availability: 5/5
Community Reviews and Expert Recommendations
Users praise how straightforward PayPal’s BNPL service is. Alexander O mentioned that this service changed his shopping habits in his Smart Money People review, “It’s a really handy thing to have when making large purchases, with no fees and a very easy process to go through with no hassle with complicated setups.”
However, some people noted that the spending limits were low compared to other BNPLs. Moreover, some had their transactions denied for no reason. Jon S reported his unpleasant experience on Trustpilot, a “Regular “Pay in 3 months” user here. Wanted to buy a new phone using PayPal Credit. The offer was to pay £15 per month for 36 months, but I was denied credit. Checked my credit rating on Transunion, and I was rated “Excellent”. So, I applied for a new credit card, 0% for 20 months, and got accepted the same day.”
Experts agree that PayPal Pay in 4 is convenient to use for online shopping, as it’s not available for in-store operations. It also leverages PayPal’s security practices to eliminate the risk of fraud. Nevertheless, many users were left unsure about the eligibility criteria.
Price
Free to use
Affirm
Best Known for Transparent Pricing
For those confused about payment plans and want more flexible financing options, Affirm will be an excellent choice. Unlike many BNPL services, Affirm provides the total cost of your purchase, including any potential interest, before you commit. It offers a range of payment plans, from 4 interest-free instalments to longer terms with interest. Affirm also conducts a soft credit check that doesn’t impact your credit score.
This BNPL company incorporates alternative data sources for better lending decisions. It features real-time integration with merchant inventory systems for smooth purchasing experiences and relies on automated processes for loan servicing.
The app employs machine learning algorithms to enhance fraud detection and prevention, ensuring secure transactions. Additionally, it offers the Affirm Card, which is preapproved for $2,000.
Features
Affirm offers bi-weekly or monthly payments, depending on the size of your transactions. For purchases up to $1,000, you can split your payment into 4 payments with no interest or late fees.
Transactions of up to $5,000 or more can be repaid in up to 36 monthly instalments for interest. However, interest rates will come upfront.
Affirm also allows you to manage your spending, benefit from available offers, and even get cashback on some of your payments.
The platform uses an API-first architecture for seamless integration with merchant platforms, providing a frictionless checkout experience. It also uses blockchain technology for secure and immutable transaction recording, ensuring high levels of data integrity and security.
Through advanced data analytics, Affirm personalised offers for users based on their spending habits and preferences. The platform’s automated credit decision process ensures quick approvals, while also allowing for manual review when necessary.
Pros
- Transparent pricing with no hidden fees
- Longer repayment terms are available
- Option for 0% interest on some purchases
Cons
- Interest rates can be high for longer terms
- Not as widely accepted as some competitors in Australia
- A soft credit check is required for approval
Criteria Evaluation
- Repayment terms: 5/5
- Interest and fees: 3/5
- Credit checks: 3/5
- Spending limits: 5/5
- Merchant availability: 3/5
Community Reviews and Expert Recommendations
Users praise Affirm’s transparency and ease of use. Mark on Trustpilot mentioned that it was an excellent BNPL,” Excellent service!! Would recommend it to anyone!!! Easy plans to fit your budget!”
Davin on Trustpilot mentioned that Affirm made large purchases more accessible, “The prices are very reasonable everywhere else tyres cost way too much and with Affirm the payment plan is excellent so that you won’t be broke.”
However, Renee Woodruff on TrustPilot reported that the higher fees made this service less appealing, “You charge me a $200 down payment and then another $143 at the end with payments so I paid 200% on one item.”
Industry experts praised how transparent and straightforward Affirm is. It offers several flexible financing options for different purchases. However, interest fees can be high with longer repayment options. Despite having an easy onboarding process, there are limited stores available in Australia.
Price
Affirm charges from 0% to 36% interest depending on the plan.
Sezzle
Best Known for Financial Education Initiatives
Sezzle sets itself apart by combining its BNPL services with a commitment to improving users’ financial health. It offers a standard 2 or 4-payment plan with no interest, along with the option to reschedule a payment once for free. Moreover, there’s an option to finance your purchases for up to 48 months for an interest fee.
What truly makes Sezzle unique is its Sezzle Up program, which reports users’ positive payment histories to credit bureaus, offering an opportunity to build or improve their credit scores. However, this option is only available for US and Canadian customers. Additionally, Sezzle provides educational resources on responsible spending, empowering users to make informed financial decisions.
Sezzle leverages a proprietary credit scoring model that incorporates alternative data sources to better assess users’ creditworthiness for more inclusive approval processes.
Sezzle’s automated payment rescheduling system features customizable rules, allowing users to adjust their payment schedule with ease while maintaining a seamless user experience.
To ensure security, Sezzle employs machine learning algorithms for fraud detection and risk assessment, providing real-time protection against suspicious activities while enhancing trust for users and merchants.
Features
Sezzle’s primary offering as an Afterpay alternative is its Pay in 4 plan, which divides purchases into four payments, due every two weeks. Users can reschedule one payment per order for free, providing added flexibility for in-store and online purchases.
The Sezzle app offers a user-friendly interface where you can manage payments, browse through partnered retailers, and access valuable financial education resources.
For users who demonstrate responsible payment behaviour, Sezzle Up, the company’s credit-building program, enables eligible participants to have their payment histories reported to credit bureaus, helping them potentially improve their credit scores. However, it’s only available in the US and Canada.
Sezzle integrates seamlessly with merchants through real-time API connections and platform plugins, ensuring a smooth checkout experience. Its automated underwriting process quickly evaluates users’ eligibility, with the option for manual review to ensure fairness and thoroughness.
Sezzle Premium is another service accessible for those invited or recommended by an existing user. This feature provides access to over 350 exclusive brands.
To enhance security, Sezzle utilises biometric authentication methods, such as fingerprint or facial recognition, protecting user accounts against unauthorised access. Personalised spending limits are determined using advanced algorithms that assess user behaviour and payment history for customised shopping experiences.
Pros
- No interest charges
- Free rescheduling option
- Potential to build credit with Sezzle Up
Cons
- A failed payment fee
- Lower spending limits for new users
- Fewer merchant options than some competitors
Criteria Evaluation
- Repayment terms: 4/5
- Interest and fees: 4/5
- Credit checks: 5/5
- Spending limits: 3/5
- Merchant availability: 3/5
Community Reviews and Expert Recommendations
Sezzle, similar to Afterpay, is a straightforward app, and many users appreciate its user-friendly interface. Melinda P. on Capterra mentioned that she would recommend Sezzle to everyone, “Overall Sezzle is amazing. So far for as long as I have been using it, it has been a Godsend. I will definitely be recommending this to other people so that they can benefit from this as well.”
Rachel P. on Capterra wished more retailers cooperated with the app, “I wish there were more options that offered Sezzle as payment.”
However, an anonymous user on Trustpilot reported that the platform’s policies are pretty confusing, “You can be on an excellent pay streak, and for some reason, they lower it and there’s no explanation why and they lower it drastically for absolutely no reason.”
Financial experts praise the different financing options as they can allow you to pay in interest-free 2 or 4 payments or split your purchase into 48 payments for a fee. The Sezzle Up is another cool feature but should be used responsibly. Moreover, Sezzle can work on their customer support and reconsider their fees as they’re higher compared to other BNPLs.
Price
If you use Sezzle for up to 4 payments, the platform will be free to use with no interest charge. Late charges of $10 apply if you miss a payment.
Larger transactions up to $15,000 are applicable for an interest fee from 5.99% to 34.99%, depending on your financing plan.
Splitit
Best Known for Using Existing Credit Cards
Splitit offers a distinctive approach to BNPL using your existing credit card to split purchases into manageable instalments. Unlike many BNPL services, Splitit does not require an application, credit check, or approval process. No account setup is required, as you can use it immediately.
Payment plans range from 3 to 24 months. While the total purchase amount is held on your credit card, funds are released as you make each payment. This setup allows a more seamless experience for users who want flexibility without new credit accounts.
Splitit integrates with major credit card networks for real-time authorization for instant approval for users based on their available credit limits. The platform uses a proprietary payment scheduling and processing system that allows for customised payment plans while maintaining full transparency on due dates and amounts.
To ensure security, Splitit employs tokenization technology, securely storing sensitive card data without exposing it during transactions. On the backend, Splitit automates merchant settlement and reconciliation processes, providing merchants with a streamlined experience.
Features
Splitit allows you to divide any purchase into 3 to 24 monthly payments using your existing credit card, offering flexibility without requiring additional applications or new lines of credit.
Splitit itself does not charge interest. If you carry a balance on your card, standard credit card interest rates may apply. The app provides a clear, user-friendly interface that displays your full payment schedule and allows you to manage multiple instalment plans at once. Additionally, certain retailers partner with Splitit to offer extended interest-free periods, making it even more attractive.
Splitit performs real-time credit limit verification with your card issuer, ensuring the purchase is within your available credit. It offers highly customizable instalment plans that merchants can adapt to fit their business needs.
The platform automates payment processing, ensuring timely transactions without manual intervention. Furthermore, Splitit integrates seamlessly with major e-commerce platforms, delivering a smooth checkout experience for users and making it simple for merchants to offer instalment payment options to their customers.
Pros
- No additional credit check or application
- Flexible repayment terms of up to 24 months
- Uses existing credit card rewards
Cons
- Requires available credit on your card
- Regular credit card interest may apply
- Limited merchant availability compared to some BNPL apps
Criteria Evaluation
- Repayment terms: 5/5
- Interest and fees: 4/5
- Credit checks: 5/5
- Spending limits: 4/5
- Merchant availability: 3/5
Community Reviews and Expert Recommendations
Users appreciate Splitit giving them more control over their finances. Gloria W. Nye praised this feature on Trustpilot, “I appreciate splitit.com because of its excellent program to help people manage a large bill. I was alarmed at first when I got a notice from my credit card that the whole amount had been taken off but upon inquiring I learned that it was not taken off and that Splitit had only confirmed that my credit card could handle the whole bill if necessary. And true enough, the monthly amount was the only debit taken off.”
However, some users like Nilima Cano didn’t understand that the whole amount would be on hold as explained on TrustPilot, “I was not expecting that the full balance of the course would be on hold for 30 days. This means I won’t be able to use my card for other things. It was not explained properly during check out.”
Experts agree Splitit can be a good option for those with some credit on their cards. The app allows instant financing and no additional charges are applied.
However, it won’t work for you if you don’t have enough credit. According to Store Leads, Splitit is currently listed with 98 e-commerce stores in Australia, and expanding its operations will make it more appealing to Aussie users.
Price
Splitit is free to use but credit card interest may apply.
Humm
Best Known for High Spending Limits
Humm is Australia’s biggest Buy Now Pay Later app and one of the best Afterpay alternatives, as it offers high spending limits of up to $30,000. Moreover, you can split your payments over 72 months—longer than most BNPL services. This is why it can be your go-to choice for a big purchase.
Humm is available online and in the store, but establishing an account is necessary. The company will check your credit before approving your payment, but this won’t affect your credit score. Humm may even require proof of income for larger transactions.
Humm’s repayment terms are flexible, offering extended options of up to 60 months for substantial buys to provide consumers with versatile financing solutions.
On the technical front, Humm ensures each transaction is assessed appropriately based on the purchase size and risk profile.
It integrates with credit bureaus to perform comprehensive checks, offering an added layer of assurance for the consumer and the merchant. The platform also features an automated income verification system that analyses bank statements, streamlining the application process while ensuring accurate and reliable assessments.
Additionally, Humm uses a risk-based pricing model that tailors interest rates to individual credit profiles, enabling more personalised financing terms based on the customer’s financial history and risk level. This customization ensures that users receive competitive and transparent repayment options, even for larger purchases.
Features
Humm has an instant calculator to calculate your payment plus interest before you make your purchase, unlike other apps like Afterpay in Australia. This can give you a clear idea before you choose this service.
The application offers several payment and financing plans for small and large purchases, with different requirements. Generally, interest rates are determined based on your credit score and payment term.
The Humm app is designed to be user-friendly, enabling customers to easily manage their payment schedules, check their available balances, and explore partnered retailers for exclusive deals. A store directory is also available to facilitate purchases.
Humm uses machine learning algorithms for real-time credit decisions by quickly evaluating a user’s credit profile. It integrates with POS systems in-store, enabling retailers to offer instant financing solutions to make the purchasing process smooth for customers.
The platform also features automated payment reminders, helping users stay on track with their instalments, while an automated system manages late payment processing if needed. Additionally, Humm offers API access for merchants, allowing businesses to customise Humm’s offerings to better suit their sales strategies.
Pros
- High spending limits available
- Flexible repayment terms for large purchases
- Option for interest-free payments on smaller amounts
Cons
- Credit check required
- Interest charges on “Big things” purchases
- Monthly fees on some plans
Criteria Evaluation
- Repayment terms: 5/5
- Interest and fees: 3/5
- Credit checks: 3/5
- Spending limits: 5/5
- Merchant availability: 4/5
Community Reviews and Expert Recommendations
Compared to other BNPLs, Humm offers high spending limits that appeal to more customers. Samuel Hunter explained how Humm saved his life on Trustpilot, “After experiencing financial difficulties that included losing my job and struggling to pay the essentials let alone an out-of-hand mortgage and other debts incurred. Without going into specifics, Humm went well beyond my expectations in terms of easing my financial burden that went on longer than I hoped it would.”
However, some customers were upset that some stores were no longer available, as Miss T. explained on Product Review Australia, “Very sad shops are absolutely disappearing & by the dozens! Long time loyal customer over the years…. VIP gone! Everything is virtually ripped away!”
Financial experts highlight Humm’s higher spending limits but warn against getting carried away. High spending limits involve higher interest rates, which increase the overall cost of your transactions.
Price
To establish an account, you have to pay a fee between $30 to $110. People who have used Humm before will pay $28. Additionally, members will pay a monthly fee of $8, and a late payment fee of $6 applies.
Notable Mentions
Despite all these cool options, other apps like Afterpay Australia are worth mentioning if none of the previous alternatives work for you:
Payright
Payright specialises in higher-value transactions, offering plans for up to 36 months.
FAQs
How do BNPL apps affect my credit score?
Most BNPL apps don’t affect your credit score when you apply for a financing plan. Some like Afterpay don’t even report your missed payments. However, repeated late payments can affect your creditworthiness and your eligibility to apply for another financing plan. Read our ClearScore review to learn how to check your credit score.
What if I miss a payment on a BNPL app?
The consequences vary by BNPL service. In some cases, there will be no consequences, while some apps can apply late fees. Other apps might freeze your account until a payment is made, or block your account permanently. Nevertheless, late payments can also affect your ability to apply for other BNPLs.
Can I use multiple BNPL apps at the same time?
Yes, it’s possible to use several BNPLs at the same time. However, several services might tempt you to overspend, and this can affect your ability to repay your debts on time. Some services might consider your usage of BNPLs before approving your financing plan.
Are BNPL apps safer than using a credit card?
BNPLs are different from credit cards and can be used for different purposes. Most cater to those who can’t get credit cards and offer lower spending limits. Thanks to their shorter payment plans, BNPLs don’t allow for the accumulation of debt.
On the other hand, credit cards offer more protection. Moreover, dispute resolution is more seamless.
How do retailers benefit from offering BNPL options?
BNPLs offer retailers several benefits, as they make products and services more accessible. By offering financing options, customers can make larger purchases knowing that they don’t have to pay the full amount on the spot. Moreover, the service pays the merchant upfront and takes on the risk of non-paying customers.
Final Thoughts
BNPL services have become a large part of Australian shopping. Apps like Afterpay and Klarna offer customers the convenience of planned purchases. This lets them spread their payments without affecting their credit score.
It’s important to remember that these still represent a debt, though. So, when you do use them, do so responsibly, and avoid any overspending. Always review the terms of each BNPL service to find the best option to meet your needs as the market continues to present new offerings.
As you navigate the world of Buy Now Pay Later services to find alternatives to Afterpay, Privacy Australia has got your back with the knowledge to keep you informed.
While they can be helpful services, BNPLs also use and share your private information. Using a VPN is a must. It will protect your online data and enable you to make the best of your BNPL shopping experience.
Additionally, our resources on things like the 8 most common PayPal scams and how to avoid them and the best pay in advance apps can provide you with valuable information that goes beyond BNPL. Additionally, be sure to check out our detailed guides on the best virtual credit cards in Australia and our resource on how to avoid credit card fraud in Australia.
