How buy now pay later works
You take your purchase home now and pay for it in instalments, usually four payments over six weeks, taken from your linked card. Most plans charge no interest; providers earn their money from the store's fee and from late fees.
Some providers instead give you a spending account with a limit, a minimum monthly repayment and a monthly fee if you carry a balance. Others offer longer plans for big purchases, with set-up and monthly fees.
What to compare
- Late fees, and the most you can be charged for one purchase.
- Monthly account fees, and when they apply.
- Any interest after an interest-free period ends.
- Spending limits, and whether the stores you use accept it.
BNPL is regulated credit
Since 10 June 2025, buy now pay later providers need an Australian credit licence. They must check that a plan suits you before approving it, offer help if you're in hardship, and belong to AFCA, the free complaints service. Your BNPL accounts and repayments can appear on your credit report, so missed payments can make other credit harder to get.
Using it well
- Only buy what you could afford to pay for today.
- Keep enough in your linked account for each payment, and set reminders.
- Watch how many plans you have running at once.
- If you can't make a payment, contact the provider before it's due and ask about hardship help.