What is the Difference between Afterpay and Laybyland?
Find out the Pros and Cons of Buy Now Pay Later (BNPL) services.
You are interested in purchasing something online, but you want to pay over time. You’ve heard a lot about Afterpay and layby fees, but what exactly is the difference between these two ways to pay? Here is more information about both payment methods.
In this article, you’ll learn:
- What is Afterpay and BNPL
- How layby differs from BNPL
- Why layby with Laybyland
What is Afterpay
If you’re an online shopper, you’ve probably seen Afterpay or other BNPL payment services like Zip, Klarna and LatitudePay just to name a few. These services allow customers to order their desired product today for quick dispatch and worry about payment at a later date. When using BNPL as a payment option, you can choose to pay for your product over an agreed period of time. This makes BNPL a desired and popular payment method since you get to receive the product before paying for it in full.
While it might seem like a great idea to choose Afterpay for your next purchase, you should think twice about paying with BNPL. It has its benefits, but there are also many risks involved.
- Credit Rankings
It’s important to note that the BNPL payment option is not regulated in the same way as layby or credit cards. Over time this can lead to increased debt levels, meaning that your credit rating can be affected.
- Late Fees
While BNPL is a convenient way to shop, you will be charged a late fee when you are unable to pay your bill on time. For example, Afterpay charges an initial $10 late fee. BNPL allows merchants to charge customers an interest rate for late payments. It may be a small amount per day but if you do not keep up with repayments, the debt will accumulate and be charged interest at a much higher rate. Make sure you understand how much interest you're paying and what the late fees are before you sign up for BNPL.
- Limited Payment Frequency
When using BNPL as a payment method, the repayment options are very limited. For Afterpay in particular, you are required to pay for your purchase over 4 instalments that are due every 2 weeks. This makes it very difficult to prioritise other payments if emergencies arise. With layby at Laybyland, you get to choose your frequency of payments - from 4 to 52 weeks.
How Layby differs from BNPL
Aside from BNPL, there is another avenue for making payments more manageable - Layby. With layby, you do not have to worry about extra monthly account fees that some BNPL providers charge.
One of the biggest differences between Layby and services like Zip is the time you receive your order. When using layby, you have to complete your payment plan before receiving your desired product. While this might put some customers off, it is one of the ideal ways to budget your finances. It is much easier to overspend when using a BNPL service as compared to using layby. Plus, it can get overwhelming managing different open orders when you have a few purchases with several BNPL providers.
- Customer Conscious
Unlike BNPL, layby at Laybyland is flexible and is customer conscious. You get to choose how much or how little you want to pay. Plus, you get to set the frequency of payments - from weekly, fortnightly or monthly. With flexible plans from 4-52 weeks, it is sure to suit customers’ budgets, whatever that may be. Laybyland also understands that from time to time, you may need to miss a payment for other reasons. Laybyland allows you to suspend your order until you are able to provide payments again.
- Future Price Guarantee
If you start a layby order today, and the price of that product is lower when you finish your payment plan, Laybyland provides you with a Future Price Guarantee Discount Voucher for the difference in price. If, however, the price is higher at the end of the plan than it was when you placed your order, you will still only be charged the initial lower price.
Why layby with Laybyland
Switched on shoppers are now turning to Laybyland to purchase items by layby online, on fair and easy terms, with free delivery and no extra fees. Laybyland makes purchasing quick, painless and affordable, with payment terms that you select and flexibility that no Buy Now Pay Later provider will give you. Give us a try, simply follow our sign-up link and become eligible for a $30 discount off your first purchase. And remember, there are no contracts to worry about. For added convenience, you don’t even have to visit the store to make every payment, we simply take care of it for you by direct debit.