The contents provided on this page are for informational purposes only and do not constitute financial advice. Consider your personal circumstances and objectives before making any financial decisions.
Buy Now, Pay Later (BNPL) has exploded in popularity across Australia, becoming a go-to payment method at both major retailers and smaller online stores. With the promise of interest-free instalments and easy checkout processes, it’s easy to see the appeal. But what seems like a smarter way to pay can sometimes lead to a cycle of spending beyond your means.
This article breaks down how BNPL works, the pros and cons, and when it might be better to consider a more cash-based approach like a pay advance product instead.
BNPL lets you buy a product or service today and pay for it in a series of smaller instalments — usually four payments spread over six weeks. These services are often integrated directly into checkout pages online or in-store.
Popular BNPL providers in Australia include:
The model is especially appealing to younger consumers who might not qualify for traditional credit cards or who want to avoid interest. However, the convenience can make it easy to overextend your budget.
When you select BNPL at checkout, you typically can purchase an item straight away and spread out the cost over time (typically a number of weeks).
If you pay late or miss a payment, late fees typically apply, and sometimes other fees such as collection fees, bill transaction fees and dishonour fees. If not addressed, these fees can snowball quickly.
Some services might also offer longer-term repayment options for bigger-ticket items, which can come with interest and begin to resemble more traditional loans.
BNPL can be a helpful tool for:
The key is making sure it’s a financial choice — not a reaction to impulsive spending or a lack of emergency savings.
Issues can arise when:
It’s important to treat BNPL like any other form of credit. Just because it's marketed as easy doesn’t mean it’s without consequences.
One of the key differences between BNPL and a pay advance product like Beforepay is the outcome:
If your need is financial — rent, groceries, transport — BNPL won’t help. Alternatively, you could also consider borrowing cash upfront like online pay advances with Beforepay to pay for the goods or services that you need now.
Beforepay supports real-life expenses and gives you more control over how and where you use the money.
BNPL is here to stay, and when used responsibly, it can be a helpful way to spread out certain costs. But it's not a substitute for budgeting — and it certainly isn't a cash solution for emergencies.
Before you select the BNPL option at checkout, consider asking yourself: Do I need this, or do I need money for something more essential? If it's the latter, a straightforward, transparent option like Beforepay might be the safer, smarter option.
Disclaimer: Beforepay Group Ltd, ABN: 63 633 925 505. Beforepay allows eligible customers to access their pay and provides budgeting tools. Beforepay does not provide financial products, financial advice or credit products. The views provided in this article include factual information and the personal opinions of relevant Beforepay staff and do not constitute financial advice. Beforepay and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this blog post and do not accept any liability for any loss whatsoever arising from the use of this information. Please read our Terms of Service carefully before deciding whether to use any of our services.