Buy Now Pay Later (BNPL) has transformed how nearly one-third (31%) of kiwis purchase and pay for a range of items and services. Forecasting into the future, it looks like this way of making purchases is here to stay. BNPL transactions grew by 49% in the first quarter of 2021 compared to the same period in 2020. Moreover, younger kiwis are more likely to be using BNPL, with 52% of Gen Z (those born between the late 1990s and early 2010s) and 44% of millennials (those born between 1981-1996) having used BNPL within the past three years, setting a precedent for these groups both as they age and for the younger generations.
Simply put, Buy Now Pay Later looks like it’s here to stay – and health clinics among a range of other businesses must now adapt to offer this payment method – or be left behind, risking being eliminated as a potential new health provider for many due to not offering this payment method.
So which BNPL are on offer here in New Zealand, how do they work, and does BNPL as a business really fit in with the integrity and care of working in healthcare? Let’s take a look.
First: What’s The Difference Between Different BNPL Providers?
Before looking into New Zealand’s key players, it’s important to know what kinds of differences we’re looking for. These include:
- How many payment instalments they offer (more instalments means less paid at each)
- The instalment frequency (how often they need to be paid and therefore over which time period in weeks the full cost must be paid)
- Late fees
- Whether there is a cap on late fees (meaning whether a person can continue being charged indefinitely or whether there is a limit on how much extra they will be charged by the BNPL provider)
- How easy the company is to work with for both the consumer and the provider
- The values and ethos of the BNPL provider themselves
AfterPay
AfterPay is an Australian-based BNPL that holds approximately 40% of the NZ market. It offers the total cost to be split over four payments. The payment frequency is fortnightly. If any of the payments are late, the consumer is charged $10.00, then $7.00 for each week thereafter. Their ongoing fees are capped at 25% of the total item cost, and the total item cost must be above $35.00. While this may seem like a small amount, in 2020, Afterpay earned $68.8 million Australian dollars from late fees alone, forming part of their total revenue of $519.2 million AUD.
Laybuy
Laybuy also holds 40% of the NZ market. It lets you split the cost of your purchase over 6 instalments, but these are weekly. If any of the payments are late, the consumer is charged $10 per missed payment up to a total of $40.00. Unfortunately, there have been many reports that Laybuy run extra checks that affect credit score ratings. This has seen it come under fire from the Australian Advertising Standards Authority (ASA), after the company claimed that the credit checks would not impact the credit score. Laybuy has now removed this claim from their website.
HealthNow
HealthNow launched as the world’s first health-focused BNPL platform here in NZ. Health consumers choose how many instalments they’d like to pay in at the time of purchase, up to a total of 12 instalments. These are paid weekly. The company charges only $7.00 per late payment, and that is after allowing for an extra 24-hour penalty-free grace period after which the payment was due. This is the lowest of the BNPL platforms reviewed. HealthNow also accepts requests to waive these fees under certain circumstances, as their mission is to support the health of New Zealanders and make healthcare more affordable, as opposed to focusing on profit.
HealthNow can only be used by health and medical providers for the goal of better healthcare accessibility. HealthNow also offers a health wallet with employers contributing to their employees’ health wallets – meaning the funds spent on BNPL can come from a pre-loaded wallet, as opposed to being a form of ‘credit’, removing the risk of fees.
Humm
Humm offers either five or ten instalments that can be paid either weekly or fortnightly, depending on the instalment number selected. The company charges $10.00 per missed payment, with no late cap fees, which can leave you up to $100.00 out of pocket. They also charge a collection fee of $30.00 every time you get a call from a collection agent to chase up your debt. Humm also caters for ‘little’ purchases (less than $1000) and ‘big’ purchases (up to $10,000). Big purchases require a separate application followed by a credit check and an approval amount will be provided that may or may not cover the cost of your purchase. A $20 fee is also applied when paying the deposit, and comes with a $2.50 per month account administration fee.
Zip Pay
Zip pay offers four fortnightly payments with an $8.00 default fee and $8.00 per missed payment at a cap of $40.00. There is also a $6.00 monthly fee for all Zip Pay and Zip Money accounts, which can be waived when your balance is paid by their due date. You are also liable for debt collection costs if Zip passes on your debt to a collection agency. Zip has an upwards limit of $1000.
***all information about BNPL providers has been attained from Canstar and we hold no liability if any of this information has changed since the date of publication.
Which BNPL Platform Is Best?
While each person’s needs and preferences vary, for health consumers and health and medical professionals, HealthNow’s benefits, features, user interface and processes appear to be best matched for health consumers. Additionally, HealthNow is led by a formidable goal of making healthcare more accessible for all in order to improve health outcomes and lessen the burden of health costs in the long term.
How Does HealthNow Work For Clinics And Patients?
HealthNow’s intuitive platform works at the point of sale, working as an app on your smartphone that connects with the HealthNow terminal at a clinic or pharmacy. Health consumers simply activate the app and select how many instalments they’d like to split their payment over. They can select to pay from a card on file, or from their health savers’ wallet, which can be contributed to by themselves, family members or employers. The app is easy and simple to use, and the health provider gets paid in full on the day by HealthNow. This makes it a win-win for both patients and practitioners.
Get Started For Free Today
There is no cost to sign up or integrate with HealthNow, and all training and support are completely free with no ongoing subscription or monthly charges. HealthNow also offers a free trial period so you can ensure it’s easy and simple to use, and right for your team. HealthNow is also offering a free $10.00 credit to every new user, helping all New Zealanders on their journey towards better health.
