Think of the interest dollars you'll save delaying payment and keeping the dollars on your mortgage!
Or people buying items beyond their means...
The consumer doesn't pay extra to use the service, but you can bet that the merchant pays fees for every sale made using Afterpay - guessing a percentage of the sale price. For the merchant, it'd be a matter of whether the increase in sales due to having the service available offsets the reduced profit they make on the sales.
Yes, that's right. The consumer doesn't pay for the service, as thatsnotme says below. But the service seems to make money from late payment charges.
Might be right there, although I'd reckon if the seller is paying for the service those costs will be passed on to the purchaser in the end.
Yeah, they have late payment fees, but apparently they only charge those after notifying you of the missed payment, and then giving you up to midnight to complete the payment. That actually seems like a pretty fair model - compare that to banks who just slug you an (often much higher) fee no questions asked. I'm sure they end up making some money off late fees, but they'd be crazy to rely on penalties like that to keep a business afloat - it's just too random and inconsistent, and definitely not a way to encourage repeat business.
Most likely, but that already happens with everything else like credit card fees (assuming they don't charge surcharges) and other operating costs. No idea what is in Afterpay's contract with the merchant, but I wouldn't be surprised at all if they prohibit the merchant charging any type of fee for using the service.
Kinda do though as you will get less of a discount. The merchant has to pay like with Certegy, Once, GE and whoever else.
I don't think it'll actually make any difference in this case. From what I can see, this service is exclusively for use with online shopping, giving you another option at the checkout. As the stuff you're buying online is going to be a fixed price anyway, payment method won't affect the price in the end. Like I said before, the merchant may be passing on the cost of the service through increasing their prices, but that increase will be for everyone, regardless of how they pay.
Yes they do. $10 late payment fee, and an extra $7 if still not made a week after. They seem to be doing everything they can to help you avoid getting hit with that fee too - if you ever have to pay it, there's nobody to blame but yourself.
Hit the nail on the head. Buying a whole new frame of expy wheels for example. I think my delegated authority by the minister of war and finance is aroudn $200. Anything more raises an eyebrow, over $500 and things start taking a turn. This is great!
Afterpay is gone they now use ZipMoney. Similar principal but you now have to spend $500 and you get 6 mths interest free. There is a $5 account fee / mth whilst you have an open balance with it.