Australia: Afterpay goes international

Afterpay, the Australian-owned payments facilitator, has officially signed its first international venture with the New Zealand buy, swap, sell marketplace, Trade Me. The new deal will allow New Zealander Trade Me customers to make purchases between $20 and $800 through four smaller repayments. As in Australia, Afterpay is free to use for buyers however a cost will be involved for merchants who wish to use the facilities. Head of Marketplace at Trade Me, Stuart McLean, explained that the fees involved for using Afterpay are still to be decided. “We haven’t finalised the pay yet but it will be similar to the percentage in Australia. But needless to say, sellers are using it in droves in Australia because it really drives up sales,” McLean explained.

While Afterpay is likely to help Trade Me increase sales, there are some who believe that the new service could be dangerous for some New Zealand customers. Hannah McQueen, a Financial Advisor, explained how Afterpay could affect New Zealand consumers, “The challenge is it’s just tempting, and a lot of people are already struggling to get ahead. Spending money on something you don’t need - even in instalments - is always bad if you’re trying to get ahead.” It is expected that many more merchants will follow after Trade Me in New Zealand, due to the success Afterpay has had in Australia.

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