If you’ve ever shopped online before, chances are you were bombarded with emails advertising ‘Afterpay Day’ last week. The sale promo, which ran from August 20 – 21, offered shoppers the chance to save up to 70% at thousands of online retailers if they simply opted for Afterpay at checkout. Not a bad deal, you may think, considering the buy now pay later giant holds deals with over 48,000 merchants worldwide.
Outside of just Afterpay, buy now pay later services are on the rise. Since the outbreak of COVID-19, investors especially have been betting hard on the growth of the new industry – and with good reason. IBISWorld predicts the sector will grow from $679.9 million in revenue this financial year to $1.1 billion by 2024-25.
Meanwhile, credit cards appear to be a dying breed. According to the ABC, Australians dumped more than 100,000 credit cards in May of this year. This takes the number of cards in use back to levels unseen since 2009.
Although buy now pay later is cashing in big with younger generations, consumer advocacy groups are wary. Many claim the services need to see the same regulations as credit card providers do, especially with the pandemic forcing many Aussies out of work.
Currently, corporate watchdog, ASIC, is preparing a new report on the industry after it’s previous review in November 2018 found the products “can cause some consumers to become financially over-committed”.
Contribute to our survey!
In response to the ‘Afterpay Day’ sale, the team here at Oiyo wanted to do a small survey of our own community to see how people feel about these buy now pay later services and spending credit in these COVID times.
Love em or hate em, tell us what you think!