Has the pandemic changed the payment landscape?
Team Veye | 14 Jul 2020
Among the first things that the pandemic changed was the shopping habits of most individuals. Online shopping became more popular and in fact, overtook a major part of the retail for the first time ever. And this further led to a change in payment methods.
Earlier credit cards used to come extremely handy for most of the consumers. Buy Now, Pay Later’ services are the new financial programs that are quickly replacing this.
This ‘Buy Now, Pay Later’ services have changed the payments landscape not only in Australia but throughout the world. These are essentially a service that allows you to make purchases and receive the product without paying the full price upfront. Instead, you are allowed to pay in regularly scheduled instalments over a certain time.
‘Buy Now, Pay Later’ services, also a bit like interest-free loans are increasingly becoming popular with shoppers to pay for their purchases. More and more retailers have realised its usefulness and are offering their services which allow customers to buy without any credit card or taking loans or pay any interest. It allows shoppers to spend money that they currently have. Though this interest-free finance isn't like a traditional loan, there are still costs involved.
Platforms such as Afterpay, Zip, Openpay, Humm, Payright and Sezzle allow them to spread the cost of a purchase over time without having to pay interest. These Platforms have been uniquely positioning to further expand through a number of near-term growth initiatives. For BNPL players, innovation remains crucial to carve out their space.
Recently, Afterpay and Qantas Frequent Flyer announced an exclusive partnership that allows members to earn Qantas Points through the Afterpay platform.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing reports. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.