Afterpay vs Latitude Pay: Which is Better?

If you're struggling to decide whether or not to go with Latitude Pay, this article will help you understand what makes it the best choice for your organization. Read on to learn how Latitude Pay Stores compares with Afterpay Stores and other alternatives.

Afterpay has been around for a few years now and has become the most popular buy now pay later service in Australia. Using their app, you can make purchases online and in-store, as well as avoid having to pay interest if you haven't paid for it yet.

For users to open an account, they must be at least 18 years of age and have a valid debit or credit card for repayment. The approval process will be quick and easy! The card will then be scanned to determine the available balance, which will be indicated by a temporary bar code.

Latitude Pay is a BNPL solution that allows you to make purchases up to $1,000 with select retailers and enjoy an interest-free payment plan. You also satisfy the remaining payments in nine weeks.

Frequency of repayment :

Afterpay: Repayments are broken into four fortnightly instalments with the first being an upfront payment of 25% at the time of shipping. Missing a payment will result in a late fee and an additional fee if it takes more than seven days.

LatitudePay: This BNPL service breaks your repayment into ten easy payments. The first payment will be automatically taken from the card you provided, and each following payment will automatically be downloaded from your LatitudePay bank account. Shoppers are able to make additional payments at any time and change their schedule if needed, which helps those who want to repay their debts faster than the initial 10-week period.

Spending Limit :

Afterpay: When you first open an account with Afterpay, there is a more restrictive spending limit. The more successful repayments you make over time, the better your chances are of getting accepted for higher spending limits. With each plan, you can buy up to $1,500 and hold an outstanding balance of $2,000.

Latitude Pay: The amount you're approved for will depend on your payment history. You can't change the amount that you spend on Latitudes per purchase, although an improved payment history will increase the limit of what we allow you to spend. If you have six active plans in place, then so long as the funds are within your spending limit, you'll be fine.

Credit Check :

Afterpay: There is a soft credit check required when you're shopping for more expensive items. But, if you're just looking to buy smaller items, you'll be able to open your Afterpay account without one.

Latitude Pay: In order to apply for Latitude Pay, it is necessary to have a reasonable credit score. Upon approval for an account, you may be subjected to another credit check from a partner retailer when making a purchase (i.e., every time you make a purchase).

Both online and offline :

Afterpay: Afterpay is a great way to shop online. It lists its partner retailers in its Shopping Directory, so it can be easy to order anything through its service. Once you've shopped in-store, your checkout experience will automatically be saved to an Afterpay account. Remember that Soft Credit Checks will be used for approval- so if you're denied (due to insufficient information), you won't have any other options.

LatitudePay: LatitudePay lets you set your own terms for in-store purchases. So for example, a merchant will create a LatitudePay plan similar to your name, and then text or email it. You'll add a product to your cart and checkout using the LatitudePay option. When the order is confirmed by the merchant, you'll receive an email with your plan information.

Some customers may shop for the lowest price, but it's best to compare what you're getting for that price.

Cost Comparison :

Account Keeping Fees

Afterpay: Using Afterpay is free of charge. You'll only have to pay the purchase price and potentially late fees, though these are rare occurrences.

Latitudepay is a payment platform that doesn't charge an account fee or interest. It's very similar to other BNPL platforms, like Afterpay for instance.

Interest Charges

Afterpay: With this BNPL service, you won't bear any interest related costs when using their service.

Latitudepay: Unlike traditional interest payments, using LatitudePay won't cause any problems with your bank. However, you may be charged a cash advance fee depending on the type of account you have. You should call your bank to find out what their Merchant Category Codes (MCC) are assigned to your payment and explain that it's not a cash-related expense.

Late fees

Afterpay doesn't require a cash advance fee, so it's ideal for impulse payments. The system will automatically collect the payment amount and then charge your card when you're ready. You'll avoid any late fees, and can pay the outstanding balance any time without restriction. If you're having financial difficulties, Afterpay offers a Hardship Policy to help get you back on track.

Latitude Pay is the only mobile app that provides you with an app notification or a text message in case your automatic payment fails. If you miss a due date, you'll be charged $10 for taking too long. Miss more than three dues and there is a cut on your spending limit.

Afterpay :

Pros.

• You can do a lot when you don't have cash in your pocket.

• If you're uncertain as to how much you can handle at any given time, customizing instalment amounts is the answer.

• There's no interest on your invoices. All the slices are interest-free.

• The application process for Afterpay takes less than a minute. You'll be able to start shopping right away.

Cons

• Missing just one payment on a single purchase can result in up to $68 in late fees.

• If the late fees happen, you may end up paying more than the original purchase price.

• "Interest-free" right now might be tempting, but it will catch up with you eventually.

• If you get more debt than you can afford, then there's a chance that you will be unable to make all of your payments.

Latitude Pay

Pros.

• It's simple: Up to $1000 spending limit without any cost of interest.

• You can make purchases at thousands of different partner retailers and the list is always expanding.

• You can pay off your balance beforehand and avoid the early instalment fee.

Cons

• Late fees can quickly mount up and restrict your purchase capabilities. If you have more than one overdue payment, your late fees could even end up costing you $50.

• Sometimes it is not possible to purchase large-amount items because of a lack of good financing options.

• Late payments on your loans or credit cards can have a big impact on your credit rating.

The best service between both is the one that suits your financial needs. Both payment options offer relatively the same spending limit but have different repayment schedules. Both have their pros and cons. So ultimately, it’s up to you to decide which is better for you.

Latitude Pay is the go-to payment method for consumers who don't plan to purchase a large item. With LatitudePay, you can get your hands on items such as appliances, electronics, furniture, and anything else that's in high demand. On the other hand, Afterpay has a wider range of partners and integrates with eCommerce shops seamlessly. Both charge late fees.

Shopy Store provide the most cheap prices with the best payment options as the Afterpay, Laybuy, Latitudepay Stores , Wizpay, Zippay and Humm.