Buy Now Pay Later services use BPAY to make life simple for their customers

- By Keith Brown
Over the last 12 months Buy Now Pay Later (BNPL) services have created interest in the payments sector unlike anything seen for a long time. Initially targeted at spreading the cost of in store purchases, they have rapidly moved online, and are now looking to target new payment sectors, one of which is spreading the cost of bills.

For many existing payments services, BNPL is seen as a threat to their current market domination, but for BPAY, their move into bill payments has been an opportunity to bring the benefits of BPAY to a whole new generation of bill payers.

BNPL companies have been around for a long time (Zip Money launched in 2013), but it’s only in the last couple of years that they have gained mainstream acceptance. RFI’s research for BPAY showed that 12% of consumers use a BNPL service in a typical month, with the majority of these in the 25 to 34 age group.

Though Afterpay and Zip are the main providers of BNPL services, there are also many other organisations looking to take some of their market share by offering new innovative services to their customers.

This has led a number of these organisations to look at bill payment as a new use case, and who better to work with than Australia’s preferred bill payment service BPAY?

In October 2019 BPAY launched its first APIs to market through a new Developer Portal (developer.bpaygroup.com.au). These APIs allow users, amongst other things, to look up BPAY biller details and validate BPAY payments, thereby making integration with BPAY simpler.

Zip were the first BNPL service to take advantage of these new capabilities and allow their customers to pay any bill showing the distinctive BPAY logo through their service. Zip are also a BPAY biller themselves, allowing their customers to use the convenience of BPAY to make their regular payments to Zip.

Since then both deferit and humm have also started offering their customers the ability to pay their bills by leveraging BPAY’s services.

So rather than competing with BPAY, these BNPL services have shown how they can leverage BPAY’s existing capabilities to make bill payment simpler for their customers and help to ensure that BPAY continues to be a key payment option for future generations.

Keith Brown is our General Manager of Product, Scheme and Business Development. He’s also a massive David Bowie fan.

This article represents the views and opinions of the author and do not necessarily reflect the opinions of BPAY. Published by BPAY Pty Ltd.  BPAY payment products are offered by over 150 Financial Institutions. Contact your Financial Institution to see if it offers BPAY payment products and to get the terms and conditions. This is general advice – before using BPAY payment products please review the terms and conditions and consider whether BPAY payment products are appropriate for your personal circumstances.

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