Layby has been around in bricks and mortar stores for ages.

It was a staple for many people who wanted to buy things and pay it off over a period of time.

A similar option has now sprung up for the ecommerce industry. Except they can receive their packages before paying for them.

And ecommerce shoppers are loving the feature.

It’s a bit like offering free shipping. The perception of getting something for free appeals to consumers.

Similar to a credit card, but without the risk of overspending – Afterpay and zipPay are a payment method (known as buy now pay later or BNPL). The customer receives their goods, and the payment platform is paid back over a set timeframe.

Using services such as Afterpay and zipPay can be beneficial to a business, particularly if your goods are attractive to the target market (women between 18-35) of such payment platforms.

Businesses can see up to 80% increase in order value by offering these BNPL payment options, and a 30% increase in online sales.

We’ve got the pros and cons of both Afterpay and zipPay, so your business can choose the best payment option to your customers.

Pros and Cons of Afterpay

Afterpay is a payment method anyone can choose if it’s offered in the online store. It’s a simple process of applying for approval and then going through the checkout.

Afterpay splits the total order amount into four equal payments and will charge the customer’s card on a fortnightly basis.

Once a customer has ordered and processed their payment with Afterpay, Afterpay will pay your business the total cost of the product. The customer then pays back the owed amount to Afterpay.


  • Approval is a simple and easy process for consumers.
  • Afterpay pays your business straight away for the products, minimising the risk of profit loss.
  • Easy integration for returns/refunds.


  • The consumer is charged a $10 late fee if they’ve missed a payment. A customer could take their dissatisfaction with this fee out on your business.
  • Your business is charged between 4-6% per transaction depending on order value.
  • Customers need a quarter of the sum total available in their account prior to purchase, which could prevent them from following through with the purchase.

Afterpay is an incredibly popular BNPL platform for many consumers and can help your customers pay for items they may not have bought without the option of BNPL.

Pros and Cons of zipPay

Much like Afterpay, zipPay is another payment method which allows your customers to buy products immediately, and then pay back zipPay over a set period of time.

Unlike Afterpay, which has a set amount due over four weeks, zipPay allows the customer to set up their own payment schedule dependent on their individual needs.


  • zipPay pays your business on the same day of sale, so you won’t risk any profit loss.
  • Customers can set up their own payment schedule, so your business can capitalise on this flexibility (customers are charged $5 for any balance owing after the first month).
  • The fees are lower than Afterpay (by about 2%).
  • Easy integration for returns/refunds.
  • Your customers don’t need any money in their account prior to purchase, they simply need to set up the payment schedule.


  • You pay a single fee per transaction based on your total monthly zipPay payment volume (up to 4% for small businesses)
  • Consumers can blame your business for any charges associated with using this payment method (though technically not the fault of the business)

As you can see, buy now pay later payment methods have both their pros and cons. As a whole however, there is minimal risk to your business as this lies with the payment platforms.

Giving your customers the freedom to choose their payment method is just another way to build loyal customers and grow your business.

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