Ever wanted to shop now and pay later, interest-free? Openpay could be just what you’re looking for.
Openpay is one of several buy-now-pay-later platforms that allow consumers to make purchases with partner merchants and make flexible, staggered repayments, without paying any interest.
How does Openpay work?
When you make a purchase, whether online or instore, you can choose Openpay as your payment method.
If you are purchasing online, you will be redirected to sign into your Openpay account; or, if you’re a first-time user, to create an Openpay account. If you are buying in-store, the retailer will be able to assist you in making a purchase using Openpay.
Once you have authorised Openpay as your payment method, you will then be given several repayment options. The standard payment term for Openpay is no longer than eight weeks, with the default being an equal repayment every fortnight.
However, Openpay does have flexible repayment options, so you can choose from several repayment plans.
How do I sign up for Openpay?
Openpay has a few requirements to sign up for an account, but no long or complicated credit checks.
To be eligible for an account, you must be aged over 18 and provide valid Australian or New Zealand identification. To create your account, you must also provide a valid email address and two phone numbers, as well as a Visa or Mastercard (either credit or debit).
When you sign up for Openpay, the company will use this information to verify your identity and, provided that you are eligible, provide instant approval.
Does Openpay charge fees?
Unlike a credit card or loan, you do not pay interest on your purchases with Openpay, despite paying them off over eight weeks. This is the main selling point for Openpay and other platforms like it.
However, for some purchases, Openpay may charge a processing or establishment fee. Processing fees are small charges of a few dollars, and are applicable to each repayment. Whether or not you will need to pay this fee will depend on the merchant you are purchasing from.
Establishment fees could apply to Openpay’s ‘Open Plus’ plans for larger purchases. All fees and charges should be disclosed at the point of purchase, so there should be no nasty surprises once you have committed to a repayment plan.
Like other platforms of this type, Openpay also charges late fees for missed repayments. Keep an eye on the upcoming payment email reminders Openpay will send, as these will detail the late fees you will incur for missing a payment.
Should I use Openpay?
If you have a big purchase coming up and want a manageable repayment plan, without incurring any interest, Openpay could be a great option for you.
On the other hand, if you’re prone to impulse shopping, or struggle to pay off your credit card every month, Openpay could make this process even more difficult for you.
Like all financial products, Openpay has both its pros and cons, and you should consider how it will affect your spending and saving habits before signing up.