Afterpay collects nearly NZ$20m a year in late fees in New Zealand
Buy-now-pay-later platform Afterpay collects almost NZ$20 million a year in late fees in New Zealand, despite the service being interest-free. According to RNZ, the figure has revived consumer-group debate over sector charges.
Buy-now-pay-later platform Afterpay collects almost NZ$20 million a year in late fees from New Zealand customers, despite the service being interest-free. According to RNZ, the figure has put consumer-group concerns over sector charges back on the agenda.
Afterpay's model splits a purchase into four payments due over two weeks; if a customer misses one of the instalments, a late fee is applied. Consumer advocates say the fees fall disproportionately on lower-income users.
The New Zealand government has been working for several years to bring the buy-now-pay-later sector under a regulatory framework; how effective oversight will be shaped remains unclear. Afterpay says its model offers consumers choice; a possible cap on late fees is on the table in regulatory discussions.
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