A new Afterpay feature has been introduced allowing shoppers to limit their spending on the popular platform.
Customers can now select the ‘Spending Limit’ feature to ensure they stay within their budget by selecting how much they are comfortable spending.
The practical feature must be below the buyer’s approved limit, but must be greater than $100.
Once customers select the amount of money they do not want to exceed, the spending limit is applied immediately.
The feature, which arrives in time for Christmas and Black Friday sales, is the latest feature to be added to Afterpay to help customers stay in control of their finances.
Other features include Preferred Payday and No Money Down.
Preferred Payday allows customers to choose the day their payment is debited from their account as their payday, which can help avoid late payment fees.
The No Money Down feature is available to approved buyers and allows them to purchase items under $500 with no upfront payment.
The new Afterpay feature allows Australian shoppers to set a limit on their spending so they don’t go over their budget, which will be useful for Christmas shopping (pictured, a customer using Afterpay in store).
Rescheduled payments and early payment are also an option for buyers who need an extra week without incurring late fees.
Afterpay executive vice president and ANZ country manager Katrina Konstas told Daily Mail Australia the new features show the “dedication” the buy now, pay later (BNPL) platform has to the “choice and flexibility” of its customers. .
“We prioritize the financial well-being of our customers and are committed to providing tools that support economic access and empowerment,” he said.
“Our new Spend Cap feature is a testament to our mission to promote responsible spending, ensuring our customers can enjoy the benefits of BNPL with confidence and peace of mind.”
The Spend Cap feature is expected to promote responsible spending habits and give shoppers a sense of control.
Konstas explained that Australians who start doing their Christmas shopping now on the platform will finish their payments before Christmas or Boxing Day, meaning they can avoid a debt hangover in the new year.
Afterpay is widely available throughout Australia and recently announced that they have partnered with IKEA to allow Australians to budget for furniture purchases in stores or online.
The Spend Cap feature was announced in September to help promote responsible spending habits.
Despite the pressure of the high cost of living, 59 per cent of Australians still intend to spend the same amount or more this Christmas compared to last year.
But the Australian government is set to crack down on buy now, pay later services, with the introduction of new proposed laws in parliament.
The government says BNPL providers have not been adequately regulated by Australia’s consumer credit laws, meaning businesses are not subject to affordability checks like those required to obtain credit cards or loans.