The Rise of BNPL in Australia
Over the past few years, Buy Now Pay Later (BNPL) services have changed the way Australians shop online and in-store.
Whether it’s upgrading your tech, refreshing your wardrobe, or booking a holiday, BNPL has become a core part of modern retail. Platforms like Afterpay, Zip, Klarna, and others have made it easy to split payments into smaller, manageable instalments, making big purchases feel less overwhelming.
As a digital marketing professional at WebOracle, I’ve seen firsthand how BNPL options can drive higher sales, reduce cart abandonment, and improve conversion rates for eCommerce websites across Australia.
A New Era of Regulation from June 2025
From 10 June 2025, BNPL providers in Australia will be moving under stricter regulations to protect consumers. These changes are significant and will impact both shoppers and retailers.
- All BNPL providers must hold an Australian Credit Licence.
- Credit checks will be mandatory for new customers.
- Missed repayments can now affect your credit score.
- Dispute resolution will be handled through AFCA for added consumer protection.
This shift effectively brings BNPL into line with traditional credit products. While this means more safeguards for consumers, it also highlights the importance of choosing a BNPL service that suits your budget and repayment habits.
The Leading BNPL Providers in Australia
Afterpay
Afterpay is the best-known BNPL service in Australia and is integrated with thousands of online stores and retailers nationwide. Shoppers can split their purchase into four equal, interest-free payments across six weeks. It’s popular for fashion, tech, and everyday shopping, making it one of the most trusted options.
Zip Pay & Zip Money
Zip offers two products:
- Zip Pay: Ideal for everyday purchases up to around $1,000, always interest-free.
- Zip Money: Designed for bigger buys with higher limits and longer repayment periods, though interest may apply after the initial term.
This flexibility makes Zip a strong contender for shoppers who want options beyond simple short-term instalments.
Klarna
Klarna is rapidly growing in Australia and is known for its smooth app experience. It offers four interest-free payments, similar to Afterpay, and has partnered with a wide range of local and international retailers, especially in fashion and homewares.
Humm
Humm focuses on larger purchases, offering up to $30,000 in financing, repaid weekly or fortnightly. Unlike Afterpay and Klarna, Humm includes longer-term repayment plans, making it a great choice for things like home renovations, furniture, and appliances.
Openpay
Openpay provides flexible plans up to around $20,000, spread across 2 to 24 months. While some plans may include interest, it’s a popular choice for medium to large expenses like dental work, education, and travel.
Pay It Later
For smaller purchases, Pay It Later keeps things simple with limits up to $500 and four weekly instalments. There’s no interest, making it a great option for quick, no-fuss buys.
PayPal Pay in 4
Leveraging PayPal’s established reputation, Pay in 4 allows you to split payments into four equal parts with no late fees and no interest. It integrates seamlessly with thousands of Australian online stores and is one of the most consumer-friendly BNPL services available.
Why BNPL Matters for eCommerce Websites
Offering BNPL on your online store is no longer optional if you want to stay competitive, as today, consumers are actively seeking out retailers that provide flexible payment options.
Adding BNPL can:
- Reduce cart abandonment by making purchases feel more manageable.
- Increase average order values as customers are comfortable spending more when they can split payments.
- Attract new customers searching specifically for BNPL-friendly retailers.
At WebOracle, we work closely with Australian businesses to integrate BNPL options into their e-commerce strategies. Our digital marketing services also help retailers target shoppers searching for BNPL-enabled stores, giving you an SEO advantage.
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BNPL services have transformed the way Australians shop, but they also require responsible use. Whether you’re a business owner looking to integrate BNPL into your website or a consumer exploring your options, it’s worth understanding how each platform works and what suits your financial situation best.
At WebOracle, we specialise in helping businesses make the most of BNPL integrations while boosting conversions, traffic, and online visibility. If you’d like to learn more about optimising your eCommerce strategy, get in touch with our team.