Did you just hear about Openpay and want to know what it is and how it works? Openpay is a buy now pay later or BNPL service that allows businesses to accept payments through their website or app while their customers pay for the goods or services over time.
But how does Openpay work? In this blog post, I’ll answer this and many more questions, including the fees you should know about and the pros and cons of using it. Let’s get started.
Openpay is an Australian company that offers interest-free payment plans from 60 days to 24 months. It has flexible payment options for online and in-store purchases of less than $1,000 and up to $20,000 in numerous businesses across more than 4,000 locations in Australia.
Openpay allows customers to pay for goods and services over time using their smartphones. There are no interest or hidden fees, so you only pay what you agreed on when you signed up.
The service encrypts and stores your personal and financial information securely. Openpay doesn’t share your information with third-party companies or sell it for marketing purposes.
Before I explain how to use Openpay and its service, you should know the requirements:
Once you provide the required information, you can create an account.
Now, let’s go over the sign-up process and what comes after it.
The first thing you need to do is download the app from the App Store or Google Play. Alternatively, you can sign up on the website.
Next, you’ll need to enter your financial details and link your credit or debit card to your account. After that, you’ll be able to make purchases using Openpay.
You can use Openpay with retailers that accept the service. Look for the Openpay logo at stores or search the official website or app.
Once you find a store that accepts Openpay, you can make a purchase using your linked credit or debit card at checkout.
Next, you’ll choose your repayment plan. That can vary from store to store, but it typically ranges from two weeks to 24 months.
The first payment is usually due at the time of purchase, and it’ll likely be 20% of the total price. You’ll make the subsequent payments in a way that works for you — on a weekly or fortnightly basis. You can set the date, and Openpay will automatically take the agreed amount.
Openpay runs credit checks on customers depending on how large the purchase is. But the service notes that it asks for consent before running a credit check.
If you cannot pay your outstanding balance, Openpay will work with you on a repayment plan.
If you’re thinking of using Openpay, you probably wonder about the costs. Let’s break down all the fees:
Now that you know how Openpay works and what fees it involves, let’s look at the pros and cons of using this service:
|You can easily find participating stores.||Openpay may run a credit check.|
|You can set automatic payments.|
Openpay is a great way for businesses to let their customers pay over time. The service offers a flexible and straightforward solution that customers can tailor to their needs.
Some industries that can benefit from the service include:
If you’re a business owner who uses Openpay, you can take advantage of these benefits:
But we should mention one disadvantage. Businesses that use Openpay must pay a merchant fee for all transactions made through their app. The fee depends on the deal made with Openpay and the total amount of the customer’s purchase.
Openpay is a great option if you’re looking for an alternative to traditional banking. It’s fast and easy to use. The best part about Openpay is that you don’t have to worry about interest rates.
So, if you’re looking for a convenient and affordable way to shop online, pay your vet bills or any other service, Openpay is a great choice.
Openpay offers various payment terms. They’re typically from 2–24 months, depending on the amount you owe.
Openpay pre-approval works similarly to other interest-free providers. You complete an application and have a credit limit.
You can use Openpay at various online and in-store retailers. You can check the complete list of on the Openpay website. There are over 4,000 locations in Australia.
How does Openpay work, and is it different from Afterpay? Both services work similarly. They’re BNPL providers that offer interest-free repayment plans.