Financial counsellors are calling for urgency in reforming Buy Now Pay Later providers as more people turn to the services for essentials.
New data by finance marketplace Compare Club has revealed 30 per cent of Australians use the services for groceries, fuel or medical needs.
It’s also been revealed people are using Buy Now Pay Later services to purchase gift cards as a way to work around the system.
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“Australians are telling us that this is a vital part of their financial management or way of surviving and they are now using these services to pay for essential products,” Compare Club head of research Kate Browne said.
“Quite a few of the Buy Now Pay Later services allow you to purchase gift cards.
“People buy these gift cards and they use the gift cards either online or in-store to buy their food or fuel.”
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Nicholas Wiganda regularly uses Buy Now Pay Later services after he was rejected for a credit card.
The full-time student works part-time and said he keeps up with his repayments.
“I am pretty typical for someone my age, more on the spendy side. I generally buy quite a bit of stuff, I am a bit more impulsive,” Wiganda said.
“I use Buy Now Pay Later practically as a credit card because it’s difficult (to get one).
“I’ve never heard of anyone being declined for it.”
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