How AfterPay Works & How To Get Started

AfterPay works on a simple strategy where member retailers offer customers the option of paying in instalments. The purchase amount is split into 4 manageable fortnightly instalments, and is available both online and in-store. The service is free for customers, and without any interest or contracts for people who pay on time.

AfterPay wants to encourage responsible spending by helping to prevent people from falling into debt. This is done by not allowing customers to use AfterPay for any further purchases until the previous instalments have been paid.

Customers approved spending limits generally depend on their repayment history. While new members have smaller spending limits, those who pay all their instalments and build up their track record may be eligible for larger spending limits.

How It Works

AfterPay works with world-leading brands, retailers and service providers who pay them to help customers plan and pay for their chosen product or services.

Once you sign up, you book, buy or collect your item/service and pay for it in 4 equal fortnightly instalments. So you can get what you want sooner, without losing financial control or divulging your personal bank details to anyone.

Retailers and service providers pay AfterPay to help you plan, buy and pay. So it’s actually through retailers and service providers that AfterPay earns money, and the reason why they don’t charge customers any interest.

However, you won’t be able to purchase anything else with AfterPay if you miss a payment until your account has been settled. There’s also a capped late fee starting at $10, but won’t go beyond 25% of the original purchase price or $68.

AfterPay assesses your repayment ability before each transaction. Responsible shoppers who have been members for a long time have the opportunity for faster approvals.

Here are some important things to consider before using AfterPay:

  • Ensure there’s sufficient funds in your account; typically at least 25% of the purchase amount.
  • The length of time you’ve been a member, since new customers are limited to make only small purchases in the first 6 weeks.
  • The amount you have to pay in instalments, and if you have other previous outstanding purchases. The chances of your purchase approval are higher if the repayment amount is smaller.
  • There is no interest to pay. AfterPay charges you late fees only if you miss payments.

Easy Sign-Up Process

Unlike other sites, there’s no need to register before your first purchase. Only when you buy something or use the services of an AfterPay partner retailer or service provider that you have to choose AfterPay as your chosen payment option at checkout.

You then have to provide your payment details if it’s the first time you are using AfterPay. Your account is created once your first order is approved. You then have to visit to set up a password.

The next time you buy using AfterPay, you just have to securely login while checking out. Downloading their app makes the entire process even easier for you.


There are a few requirements for signing up with AfterPay to ensure a community of responsible spenders who stick to their short instalment plans.

  • Be living in Australia
  • Be at least 18 years of age
  • Be able to enter a legally binding contract
  • Have a valid ID, email address and phone number that can be verified
  • Pay using an Australian bank payment card

Your First Payment

Responsible spenders who have been with AfterPay for a while can expect their first payment to be withdrawn 2 weeks from the day of buying their items. AfterPay generally requires that you pay 25% of the instalment at the time of purchase.

Other situations where you may have to pay the first 25% at the time of purchase are:

  • If it’s the first time you are using AfterPay
  • Purchases costing more than $500
  • Shopping in physical store
  • Orders placed in the first 6 weeks after signing up with AfterPay
  • Jetstar bookings

Where Can AfterPay Be Used?

There are thousands of retailers and service providers around the world who offer AfterPay. Click here to check out available retailers: AfterPay Retailers

How Much Does It Cost?

It’s free for customers as it’s the retailers and service providers who pay them to help you plan, buy and pay for your purchases.

Safety & Security

AfterPay is very particular about protecting your data. They have the highest level of payment data security in the world, Data Security Standard Level 1, applicable to all major worldwide payment companies.

Security is important to AfterPay because their business depends on their community trusting them to help them plan, buy and pay. It’s this trust that has helped them get their millions of global customers, who trust AfterPay to help them safely plan and budget.

Easy, Debt-Free Purchasing

Unlike other purchases, AfterPay is not another form of debt since they don’t charge interest to make money from you. It’s the retailers and service providers who pay them to help a customer make purchases and plan repayments.

AfterPay only charges you late payment fees. This is actually bad for them because they have to spend more to recover the amount. Members who miss payments also cannot buy anything through AfterPay till their account is settled.

This is unlike credit card companies who don’t prevent you from buying and spending more money, where you can eventually end up in debt because of missing payments.

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