Afterpay has millions of active Australian users, nearly one in 10 Australians - and $2.2 billion in sales. According to the latest report published by ASIC, it was found out that Australian customers, collectively, owe $903 million in buy now, pay later debts through platforms like Afterpay.
All in all, there was a 400 percent jump in customers who had used these schemes for their shopping in the last financial year, which increased the company’s shares as much as 10 per cent to a high of $14.29.
On the other hand, Afterpay comes at a high cost for small businesses. One business owner stated she has a love - hate relationship with Afterpay, simply because whenever a customer asks for a refund, the payment service provider keeps its 75.6 per cent fee.
Statistically speaking, most of Afterpay’s loyal customers are female, who use this payment platform to hide purchases from their husbands and partners.
“For one purchase of $100, Afterpay comes up as four separate payments of $25 spread over two credit card statements,” she says. “Best of all the statement only refers to Afterpay, not to the name of the store.”
Switching to Afterpay opens up great opportunity for retail and small businesses as long as they can avoid circumstances like product returns. Without customers asking for refunds and the like, the higher the chances of maximising the benefit Afterpay can offer.