Two-thirds (66%) of Australians expect to make a significant household purchase this year, such as a new fridge, sofa or computer, with almost three-quarters (73%) of households interested in using a Buy Now, Pay Later (BNPL) service to purchase these items, according to new research commissioned by BNPL online retailer, Gimmie.
One in three (33%) Australian families say they couldn’t afford to pay for it upfront with the vast majority (91%) saying they prefer to pay for high-value items over time to help manage household budgets.
BNPL services are by far the most popular borrowing scheme when compared against Interest Free and Rent-to-Own. 76% of Australians have used a Buy Now, Pay Later services in the past 12 months, compared to only 32% who used an Interest Free scheme and 17% who used a Rent-to-Own scheme (noting some use multiple services).
Nine in 10 (90%) Australians enjoy the flexibility that BNPL services provide, saying they better match their expenses with their income and when they’re actually paid.
However, there’s significant distrust when it comes to lender schemes with 78% of Australians saying they think the fine print has hidden costs designed to trick consumers into paying more. Almost nine in 10 (89%) Australians say companies should have easy to understand T&Cs for consumers to know the real cost upfront of using a BNPL service.
The independent survey conducted by Pureprofile polled 1,002 Australians aged between 18 and 65 who have used a Buy Now Pay Later, Rent to Own or Interest Free scheme to make a purchase in the last 12 months.
“Gimmie is revolutionising how we buy now by giving people access to life’s big buys in a simple, transparent and affordable way without the need for traditional credit or interest-based products such as credit cards and other finance solutions that can be complex and confusing,” Gimmie co-founder, Scott Roworth said.
“Most BNPL products are aimed at small transactions that are paid off across a few short weeks, while Gimmie is different – it’s specifically designed for higher-value purchases for customers who need a safe, flexible and responsible way to pay over a longer period of time.
“Gimmie is completely interest-free with no hidden fees or charges, and we offer instalment payment plans so customers can pay over one or two years in an affordable timeframe that suits their income. Gimmie is also a responsible lender – we operate under a credit licence and ensure our customers can afford the instalment payment plans they have applied for to avoid getting caught in a debt trap,” he added.