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Lender
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Afterpay

Finanso.Multilogin™

About lender

Afterpay was founded in 2014 in Sydney, Australia. The company has millions of customers worldwide and hundreds of thousands of merchant partners using the platform in Australia, the USA, Canada, the UK, New Zealand, and the EU (where it is called Clearpay). Afterpay's global team currently consists of more than 1,300 employees and growing. Afterpay allows buying now and paying within six weeks. This organization was not founded to offer credit with standard interest rates. It was created to support responsible consumption and convenient shopping with partnering brands. The company generates its income from partners where Afterpay customers shop.

Afterpay became known for its convenience and transparency: no fees if you repay on time. No debt trap, just fixed penalty fees and a frozen purchase account until all payments are paid in full. It's all about reputation and trust. As long as you repay your trusted installment payment, your shopping limit is available and can grow. Since Afterpay has partners in different spots of the world you can shop and travel with lower expenses. Afterpay is beneficial for both businesses and customers:

  • Buyers from all over the world can buy what they want or need from famous Afterpay partners and drop down the price so that it won't be a burden on their budget;

  • Businesses can increase their sales and ensure a constant cash flow.

Pros and cons

Pros

There are serious reasons why Afterpay has become so popular in many countries:

  • no interest is charged, only for late payments;

  • no credit check;

  • no collateral is required;

  • internal credit history is written by your repayments;

  • the credit limit grows;

  • different ways to join:

    • on the website;

    • via the mobile app;

    • by making your first online purchase and choosing Afterpay as your payment method in the partner stores.

  • referral bonus system;

  • you can pay via Afterpay card in-store or while shopping online and enjoy international delivery;

  • only the first of four payments is paid on the same day when you make the purchase;

  • enjoy fashion trends in your wardrobe with moderate expenses;
    reminders about your repayments due;

  • two options for repayment: regular schedule or "pay now", i.e. early repayment;

  • if you wish, your account can be removed from the system;

  • a large list of partner stores for interest-free shopping;

  • possibility to create an account as a buyer or a merchant;

  • convenient checkout;

  • your trustworthiness is based on your payment discipline;

  • dozens of shopping tips to save time and money;

  • ability to plan your spending and afford more purchases;

  • shopping limit that can prevent unwise spending;

  • no need to submit documents for approval before enjoying your shopping with Afterpay;

  • six weeks to repay installments.

  • hardship policy is available for customers which have repayment issues;

  • the Afterpay card can be added as a contactless payment method for purchases in stores or online with your smartphone;

To make shopping with Afterpay as convenient as possible, you should know that when you use Afterpay, you make a financial commitment that reduces your net income until you pay off your purchases.

Cons

  • the concept of "buy now and pay later" may tempt you to spend more than planned in the store;

  • the use of Afterpay means that you use credit funds instead of earning more income, i.e. your financial situation is not improved;

  • the freedom to spend money can lead to emotional consumption;

  • if you do not have a stable income, it can be risky and worsen your financial situation if you tend to spend a lot;

  • you need to verify your residency against the list of supported locations (Australia, the United Kingdom, Canada, the United States, and New Zealand);

  • if you are just starting, the first purchase limit is $600;

  • if you do not repay your trusted installments on time, your Afterpay account will be frozen until the debt is paid;

  • fees will be charged if you have not repaid installments within the schedule.

  • only one payment deferral is allowed per one order due to return to the merchant and only for two weeks. If the seller's refund is not yet transferred, you may have to pay two installments in one day from your funds to Afterpay;

  • Afterpay can only be used for shopping and not for paying your bills;

  • your purchase can be declined;

  • if you use a credit card to pay Afterpay back, you may incur interest charges as the usual interest-free period for bank credit cards is shorter than for Afterpay;

  • Afterpay does not take foreign bank cards;

  • Afterpay has the right to sell unpaid debts to third-party collection agencies, according to some alternative sources of information. This may mean threatening phone calls, letters, and possible defaults if you fail to make your payments. Also, in such a case, you have no guarantee that your credit score will not be affected and that there will not be a dispute with a third party.

If you decide to use Afterpay, you must be aware that whether it is a good or bad thing depends on your situation. There are the following advantages: convenient virtual extra money for purchases online or in-store, thousands of Afterpay partners selling different clothes and accessories, pay in 4 installments, low risk, and no interest. And as always, there are two sides to the coin. We must mention that even such a brilliant idea as Afterpay has several disadvantages for customers:

It does not work around the globe; you do not track the date of your repayments (except in cases when you click "Pay now" to repay the remaining balance in full); your spending limit may grow and it could be a risk if you have a habit of emotional shopping and have problems with a stable income, Afterpay reserves the right to sell bad debts to third parties.

Loan conditions

The process to get your shopping limit with Afterpay is simple. You get some sort of credit when you checkout and pay only a quarter of the total amount on the day of purchase. To purchase with Afterpay, the customer must meet the following requirements:

  • the customer is 18 years old or older;

  • the customer is an authorized holder of an eligible debit or credit card;

  • the amount of the purchases must be over $35;

  • the customer pays 25% of the total cost in advance;

  • residence and country of card issuance must be listed among the countries available for this service (Australia, Canada, USA, New Zealand).

  • the customer must create an account on the Afterpay website or via the mobile app;

  • you must fill in your payment information to guarantee payments.

Methods of loan funding

The company does not give you money to your account nor does it give cash. You simply shop at one of your favorite stores, which you can find in the shop directory, and select Afterpay as your payment method at checkout. First-time customers need to set up an Afterpay account (with instant approval decision) and returning customers simply log in to make their purchase. For online orders, the merchant ships the goods to you after the payment process. For in-shop purchases, download the Afterpay app, follow the instructions in the app to set up the Afterpay card, and use the Afterpay card with Apple Pay, Google Pay, or Samsung Pay to make contactless payments at checkout. Pay 25% (first payment) at the time of purchase and take your purchase home the same day. The company will cover the remaining 75% for you for 6 weeks.

Reviews

FAQ

What is Afterpay?

The company was founded in 2014 in Sydney, Australia. Afterpay now has millions of customers worldwide and hundreds of thousands of merchant partners choose the Afterpay platform in Australia, the USA, Canada, the UK, New Zealand, and the EU (where it is called Clearpay). Afterpay is a company that accelerates the turnover of goods in the market. It was founded to reduce the burden of shopping expenses on the family budget by offering trustworthy installment payments. The average order value is less than $150. The company's main revenue comes from its merchant partner network. Diligent paying customers who are in control of their budget and spending never pay interest or fees to Afterpay. The company itself does not check credit scores or apply collection procedures for delinquent debtors. Afterpay's services are available for online and in-store purchases. Customers who choose Afterpay can return goods to the merchant to arrange one deferred installment per purchase while the merchant's refund runs to pay the outstanding balance for that order.

Who owns Afterpay?

According to sources, the shares of the Australian company Afterpay were bought by Block (former company name: Square). Block is a financial services provider that enables smartphone users, including SMEs, to process credit card payments through its compact terminals. It's not Block's first experience in such a business as Afterpay. Overseas, Block also has a consumer app called Cash App. It is very popular, as evidenced by the number of active users. Over 70 million people use the app and transfer money, and trade digital assets such as cryptocurrencies and stocks. Block believes that cryptocurrency has strong potential and is building a bitcoin mining system and already has more than 8,000 bitcoin on its books, in addition to plans to mine the digital currency.

How do you qualify for Afterpay?

Afterpay was created for incremental sales and to promote responsible consumption. That's why they pay close attention to the selection criteria for their community. Afterpay pays close attention to the verification of new members because they believe it is important for a good repayment rate. The company has developed its own model to assess potential repayment ability and compliance with the payment plan. The rules for repayment ability are strict but transparent. You can join Shoppers Community if:

  • You are at least 18 years old

  • You have a valid and verifiable email address and cell phone number

  • You have a credit or a debit card to make a purchase

  • You can enter into a legally binding contract.

  • Afterpay uses a mandatory ID verification process to ensure your eligibility.

Note: Passing this verification alone does not guarantee that your purchase will be approved with Afterpay.

How much can you borrow from Afterpay?

Afterpay values transparency, so it is convenient and easy to find out the customer's current spending limit. Once you successfully log in to the company's website or app, you can see your current spending amount. Standard terms are offered for new customers: You start with a spending limit of about $600. It increases over time as you properly repay the installments for your purchases. The exact length of time limit can be increased by Afterpay and the percentage of growth is not specified on the company's website. It is said that the longer you are a responsible customer with Afterpay and make all payments on time, the more likely the amount you can spend will increase. If you have specific questions about this issue, you should contact the company's customer support. According to some sources, Afterpay has order and account limits that start low and only increase once you've established a consistent repayment track record. The maximum amount per transaction is $1,500, while the outstanding account limit is up to $2,000. Afterpay transaction and order limits also vary from store to store.

Is Afterpay a legitimate company?

Afterpay is an official company established to make shopping at the merchants whose logo you can find in the list of partners convenient and pleasant. Afterpay Limited (abbreviated as Afterpay) is an Australian financial technology company. The company headquarter is located at Australia Southbank, 23/2 Southbank Blvd. The Melbourne office only has the following contact information: Melbourne GPO Box 2269The US office is located in San Francisco, Phelan Building, 760 Market St 2 2nd floor. There are no offices in Canada.

Company documents

Terms of use
Privacy Policy

Afterpay empowers customers to access the things they want and need, while still allowing them to maintain financial wellness and control, by splitting payments in four, for both online and in-store purchases. Afterpay is deeply committed to delivering positive outcomes for customers.

© Afterpay

Financial products

Afterpay
Buy Now Pay Later
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

up to $2,000
Term
i

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6 - 8 weeks

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Calculate loan payments in Afterpay

Afterpay calculator will allow you to calculate an approximate payment schedule for the loan

Loan amount
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Enter the desired loan amount

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CAD
100 $
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Loan term
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Specify the loan term for the calculation

days
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What to pay attention to when applying for a loan from Afterpay

  1. The company must have a license if it runs business in Alberta, British Columbia, Manitoba, Ontario and Quebec.
  2. You can check the availability of the relevant license (copy) at the branch of the lending company.
  3. Membership in a self-regulatory organization (SRO) is an additional guarantee of the reliability of the lending company. This information can also be checked at the company's branch or on its official website.
  4. Availability of lending policies.
  5. The procedure for applying for a loan.
  6. The procedure for concluding the loan agreement and receiving the payment schedule.
  7. Other conditions for granting loans.

We recommend

  1. To check out the interest rates and frequency. 
  2. Check the availability of individual terms in the loan agreement (principal amount, term, date of advance, etc.).
  3. Check whether the loan agreement contains information about the total cost of borrowing.
  4. Take time to think – you can change your mind before agreeing or signing a loan agreement.
  5. Speed of loan processing.
  6. Accessibility – alternative lenders often operate where there are no bank branches.
  7. For the borrower - high interest on the loan.
  8. For an investor, the safety of funds is not guaranteed by the state.

What distinguishes Afterpay from banks:

  1. Simplicity - loan processing is less formalized than in a bank.
  2. Fast loan processing.
  3. Accessibility.
  4. For the borrower - high interest on the loan.
  5. For an investor, the safety of funds is not guaranteed by the state.
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All Afterpay’s reviews by August 2022
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