HomePARTNER ARTICLESAfterpay, Laybuy, Humm & Zip, which BNPL service suits you best?

Afterpay, Laybuy, Humm & Zip, which BNPL service suits you best?

As Buy Now Pay Later (BNPL) services continue to rise globally, we thought it would be an ideal time to showcase the key differences between the providers as well as bust a few myths and common misconceptions on the services.

To help highlight key differences between the main BNPL players along with common misconceptions, local insights, and ASX figures, Afterpay has pulled together the attached BNPL comparison chart which provides the primary information you need on each provider.

With more and more people signing up to Afterpay (3.6 million across Australia and New Zealand to be exact) and other BNPL services like Laybuy, Zip, and Humm, we think it important to showcase the differences between these to keep people informed.


How it works

Afterpay allows you to make a purchase and pay it off in four equal fortnightly installments. Afterpay is always interest free.

Afterpay sets a sensible initial spending limit for your first purchase using the service, which will then increase gradually over time based on a customer’s ability to repay on time.

Common misconceptions  

Misconception: Using BNPL services can push consumers into financial hardship and debt.

Truth: All orders are subject to Afterpay’s approval, meaning if customers have any overdue payments, Afterpay will not be available to them, ensuring customers don’t get into a debt spiral.

Additionally, for each order below $40, a maximum of one $10 late fee may be applied per order. For each order of $40 or above, the total of the late fees that may be applied are capped at 25% of the original order value or $68, whichever is less.

Misconception: BNPL incentivises people to overspend 

Truth: Every Afterpay customer starts with a limit of $600. This pre-approved spend amount increases gradually. The longer customers have been a responsible shopper with Afterpay – making all payments on time – the more likely the amount customers can spend will increase.Afterpay has also implemented a financial hardship policy since its inception.

Major differences 

Afterpay is a BNPL service that has 4.6 million ANZ customers. 

Afterpay does not conduct credit checks or report late payments. Its main aim is to help customers spend responsibly, and it takes a lot of steps to help ensure this, including pausing accounts when payments are missed. There are no other consequences for a customer. 

Afterpay has a new payment method available instore, Afterpay Card. Afterpay Card has replaced the barcode system of shopping in-store. It’s a contactless Visa Card stored in the Google Pay or Apple Wallet that works just like a payWave card. 

Payment: 4 installments

Frequency: Fortnightly

Customer limit: $2,000

Maximum order: $1,500

Fees: $10 late fee, and a further $7 if the payment remains unpaid 7 days after the due date

Interest charges: Interest free


How it works

Laybuy offers shoppers an interest free payment plan that lets you secure your purchase today and pay for it in 6 equal payments, once a week for 6 weeks. 

Common misconceptions

Misconception: Using BNPL services can push consumers into financial hardship and debt.

Truth: Laybuy conducts credit and affordability checks on its customers. If a customer is unable to make a payment or misses a payment, their account is suspended. 

Laybuy does not allow customers to make a new purchase until all previously unpaid payments (instalments and late fees) are paid.

Misconception: BNPL incentivises people to overspend 

Truth: Laybuy enables customers to spread out payments over six weeks, with the intention of living within your means. Laybuy also shares tips to encourage customers to use Laybuy responsibly. These include budgeting, planning ahead, being mindful of credit ratings and managing spending. 

Major differences

Laybuy is a BNPL service that has 28k ANZ customers.

Missed Laybuy payments can negatively impact credit scores. 

Payment: 6 instalments

Frequency: Weekly

Customer limit: $1,200

Maximum order: $1,200

Fees: $10 late payment fee Laybuy may arrange for a debt collection agency to collect the amount customers owe the company

Interest charge: Interest free


How it works:

Categorised into two services for smaller and larger purchases. 

Humm Little things – Humm Little things allows customers to create an account online and spend up to $1,000 online or instore with any humm retailer. Customers can pay off purchases in 5 fortnightly or 10 weekly instalments.

Humm Big things – Humm Big  things allows customers to create an account online and spend up to $10,000 online or instore with any humm retailer. Depending on where you shop and what you buy, repay over 6, 9, 12 months all the way to 24 months.

Common misconceptions

Misconception: Using BNPL services can push consumers into financial hardship and debt.

Truth: Humm conducts AML checks with all customers that sign up to ensure Humm know the source of customers’ funds. 

Humm has also implemented a policy which ensures customers facing financial hardship are assisted on a case by case basis.

Major differences

Humm has 1 million ANZ customers and the product ecosystem includes buy now pay later, credit cards, and business financing products. 

Humm conducts credit checks. 

Humm allows customers to fund whatever they need, both big and little. This means its services are split into two categories; ‘Little things’ for purchases up to $1,000, and ‘Big things’ for those purchases over $1,000 and all the way up to $10,000. They each have their own set of rules for approval.

Payment: See below

Frequency: Little things: Repay in 5 or 10 instalments weekly or fortnightly

Big Things: Repay over 6, 12, 24 months all the way up to 60 months

Customer limit: $1,000 (Little things) $10,000 (Big things)

Maximum order: $2,000 (Little things) $30,000 (Big things)


  • $10 late payment fee
  • Collection Fee of $30 each time a collection agent collects money due by you.

Interest charge: Interest free (if using Humm Little things and Humm Big things)

Zip Pay

How it works

Zip allows customers to purchase an item paying 25% upfront, followed by 3 fortnightly instalments.  

Common misconceptions:

Misconception: Using BNPL services can push consumers into financial hardship and debt.

Truth: Zip is a responsible credit provider. It’s both a core value for the brand and a legal obligation of its credit license as regulated by ASIC. Zip prides itself on offering products with a strong focus on accountability and financial wellbeing. 

Misconception: BNPL incentivises people to overspend 

Truth: In 2016 Zip acquired Pocketbook, the market-leading app-based provider of free personal financial management solutions. This free app gives consumers a unified view of their finances, access to market-leading budgeting tools and empowers them to make informed spending and saving decisions.

Major differences:

Zip offers Zip Pay and Zip Money and has 1.4 million ANZ Customers. 

Zip also offers Zip Money which is not interest free. Every order on a Zip Money account has its own interest free period. If the order is paid in full before the interest-free period finishes, you will not incur any interest on the order. If the order is not paid off and the interest-free period has ended, you will incur interest on the remaining balance. The interest rate is 19.9% per annum. 

Payments: See below

Frequency: 25% upfront, followed by 3 fortnightly instalments.

Customer limit: $1,000 or $1,500 for those with very high credit scores

Maximum order: $1,000

Fees: Minimum monthly repayment of $40

$6 monthly account fee applies when there is an outstanding account balance after initial eight week free period 

$8 late payment fee and further $8 each week if you still haven’t paid In the event of non-payment of any Instalment under an Instalment Plan, Zip may appoint a third party collection agency to collect any amounts owing and this does not require customer consent or agreement.

Interest charges: Interest free (if using ZipPay)

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