Plenty of newsagents who have applied to to offer Afterpay in their businesses have been rejected early in the application process.
Afterpay is rejecting these businesses on the basis they sell three product categories that are not permitted under its terms: gambling, tobacco and porn.
While I have made representations on the rejections of which I am aware and explained how problematic products can be fenced off from being paid for through Afterpay, the rejection remains on foot.
The terms established by Afterpay reflect their own business terms and, I suspect, terms imposed by financiers and others with a stake in the Afterpay business. Others in this lending space have similar terms.
Newsagency businesses that are not agents and not convenience focussed have a better chance of overcoming the Afterpay ban.
This all matters because of the commercial value to retailers on the buy now pay later model. Through my work with newsxpress I see plenty of business being won by newsXpress members selling items,ms today that shoppers will pay for over time. This is business that would have gone to other retailers.
There are stores winning click and collect business from shoppers repaired to drive an hour or so to pick up something paid for through Oxipay (like Afterpay), which they could have bought locally but COD or on LayBy.
Once a purchase decision has been made people often want the item(s) immediately. Hence the value of offering this buy now take it now pay later service. This is why the Afterpay rejection needs work.
Does Oxipay have the same stance.
Oxipay has not yet rolled out into physical stores. The first one will be list in a week or two. It will be one of my own stores, a trial site. It has been approved. But it does not sell lottery, tobacco or adult products.
I have a better chance of navigating the issue through Oxipay than Afterpay and thereby hope to provide a more retailer-friendly outcome for colleagues here.
So neither oxipay or afterpay is accessible by any newsagency with either lottery or agency or tobacco or porn.
Colin that is a premature assumption on your part. The trial by Oxipay is the first step. Next, is discussions navigating fencing what it can be used for. The Oxipay integration offers more comfort for them than he current Afterpay approach.
Not trying to be negative. It’s a busy time of year and I do not have time to pursue lost causes. There are 1750 newsagents on Tower, have any physical stores succeeded with either system and if yes, did any of those successful have lottery.
Oxipay is not yet released, signup has not been opened. Afterpay was released through Tyro recently – I do not have their data.
Now, while I say Oxipay is not yet released, it is released for online and I am seeing plenty of the newsXpress stores sell online for click and collect (in-store). So, in that sense, it is live, working and delivering revenue which might otherwise have been lost.
Oxipay is active, Betta Homes are advertising it as available on line and in selected stores. Same Afterpay, Hype (fashion) are advertising it as available on line and in selected stores. I suspect both are less than truthful with the in store experience being very close to on line procedure.
The financial regulators will be all over this. There is no way they will wish to see everyday expenditure on lottery, newspapers, strationery, confectionery, postage, groceries being financed by a 10 minute application process for a loosely regulated 4 month repayment plan. The headlines in a few months when it is taken up both those who can least afford payment plans are easily imaginable.
Oxipay and Afterpay both rely on easy access and light regulation, their model will fail if the process is as regulated as getting a credit card.
I will therefore be very surprised if any bricks and mortar stock gets these systems if there is any hint of agency, convenience, gambling or alcohol being available.
Good for the big ticket item shops and on-line stores … but their customers already have access to credit cards. If not, then the regulation question rears its head again.
I would of thought this would be seen and regulated as a financial product and treated as a credit card or loan etc.
Not regulated yet but I expect hat o change.