Are AfterPay, ZipPay etc signs of the beginning of the end ?

Anonymous
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These systems don't really represent a new 'convenience'.

They are a strong indicator that disposable income has almost dried up.

The 'system' must keep chugging along ( people buying stuff ) or fall down in a screaming heap.

I suppose the only upside is that people who are already up to their eyeballs in debt with a few

payment defaults will be denied this 'convenience' ( for now ).

We will 'recover' from the next GFC the same way we did from the most recent one.

Millions more people will lose it all.

 

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Are AfterPay, ZipPay etc signs of the beginning of the end ?

No one will be denied Afterpay as all you need is a bank account.

But ZipPay is a different story where you will need to qualify for credit as it's a repayment over 12 months and Afterpay is a fortnightly repayment over 2 months.

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Are AfterPay, ZipPay etc signs of the beginning of the end ?

A clothing store I went into with my son yesterday had a sign that they accepted Afterpay.

My kid is 16 and very into clothing, and he does have a job to earn money for those items he wants.

He doesn't qualify for a credit card yet, so this is perhaps a good way for him to learn that he has to pay what has been loaned by the due date or else pay interest (I think Afterpay is done in 4 installments).

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Are AfterPay, ZipPay etc signs of the beginning of the end ?

Unfortunately for your son you need to be 18 and already have a credit card to join Afterpay.

 

"No one will be denied Afterpay as all you need is a bank account."

Afterpay do and have denied customers, and when you sign up you authorise them to assess your capability to make payments as per their T&Cs.    

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Are AfterPay, ZipPay etc signs of the beginning of the end ?


@Anonymous wrote:

These systems don't really represent a new 'convenience'.

They are a strong indicator that disposable income has almost dried up.

The 'system' must keep chugging along ( people buying stuff ) or fall down in a screaming heap.

I suppose the only upside is that people who are already up to their eyeballs in debt with a few

payment defaults will be denied this 'convenience' ( for now ).

We will 'recover' from the next GFC the same way we did from the most recent one.

Millions more people will lose it all.

 


That assumes these ideas are about maintaining rather than increasing, and that the appeal is affordability rather than palatability.

 

Smaller payments over longer periods have been around for a long time, and they're designed to perform the same psychological trick as $19.99 vs $20.00. 

 

Spoiler
smbc math education
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Are AfterPay, ZipPay etc signs of the beginning of the end ?

ROFL @Digi - absolutely love your spoiler and agree wholeheartedly with the sentiment expressed.

 

We're already doing this in the education system and have been for years.

 

Best to just develop kids in a minimalist way and try not to teach them anything approaching logic.

 

That other system was tried in the 60's and early 70's and the results caused govts nothing but trouble so will not be repeated.

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Are AfterPay, ZipPay etc signs of the beginning of the end ?

I'm reminded of this 'special' on that fishing website recently

 

I guess they believe their shoppers have never heard of 'rounding up' to the nearest cent

 

29542342_10156547621670663_9117497747741221062_n.jpg

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Are AfterPay, ZipPay etc signs of the beginning of the end ?


@Anonymous wrote:

These systems don't really represent a new 'convenience'.

They are a strong indicator that disposable income has almost dried up.

The 'system' must keep chugging along ( people buying stuff ) or fall down in a screaming heap.

I suppose the only upside is that people who are already up to their eyeballs in debt with a few

payment defaults will be denied this 'convenience' ( for now ).

We will 'recover' from the next GFC the same way we did from the most recent one.

Millions more people will lose it all.

 


I think they're just one more way to try and get people to spend money they don't have.  I don't know how closely connected they are to banks (they have to be connected to a certain extent) but a lot of people hate banks and will prefer to use these new methods.  Some people know they can't control themselves and won't have a credit card because of it, but they may well be tempted by things like afterpay.

 

Plenty of people still have disposable income.  On another site, at least 3/4 of my customers pay by bank deposit.  They couldn't do that if they didn't have the money in their accounts.

 

Most of the people I've known who are up to their eyeballs in debt are in that situation simply because they buy things they don't need or that have no lasting value.  I'm not saying it applies to everyone but it does apply to most that are in debt.  The best way to stay out of debt is not to buy anything you can't pay for straight away (with money you already have).  It's also 

 

We never recovered from the last GFC.  Things were only propped up artificially by creating even more debt but that only created a bigger problem, one which we WILL have to face sooner rather than later.

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Are AfterPay, ZipPay etc signs of the beginning of the end ?


@enigmabear wrote:

I'm reminded of this 'special' on that fishing website recently

 

I guess they believe their shoppers have never heard of 'rounding up' to the nearest cent

 

29542342_10156547621670663_9117497747741221062_n.jpg


Smiley LOL

 

And then you get combo deals where the unit price for a 5-pack turns out to be more than buying them singularly - or in smaller packs. Subway do this with their cookie prices, I noticed - it goes something like 1 cookie is $1.50, $3 cookies are $3, 6 cookies are $4 and then 8 cookies are $8.00, so basically if you buy 2 packs of 6 (12 cookies), you pay the same as the price for 8 cookies. Smiley Frustrated

 

@dazzledayz - I was pondering the differences in my primary school education vs what my niece and nephew were taught, and how they were discouraged in areas that I was encouraged instead (eg I was never held back from reading "older" books etc, whereas my niece, who was fully capable of reading at levels above most of the other students in the class, was not allowed to read more difficult books because her handwriting wasn't as neat as the teacher liked - I understand sometimes this is an individual teacher issue, but her brother was disadvantaged and discouraged in similar ways). I was also taught how to write formal letters in 4th grade, which guides how I approach businesses and other institutions (no one-liner text-speak messages from me), correct formatting of addresses, how to read / fill out cheques and bank deposit slips and all sorts of other little tasks like that, so that certain things were just intuitive when I was faced with them in the real world (some are less relevant these days, like cheques, but there are still equivalent things that many people just don't know how to do).

 

These days, I think kids are mostly taught that authority figures are in the right, even if they're not right. Smiley Sad

 

 

PS, only very vaguely related, but smbc has some real gems in amongst the series. The one in the spoiler below is a personal favourite...

 

Spoiler
human fuel

 

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Are AfterPay, ZipPay etc signs of the beginning of the end ?

The only one's that get denied are those that have missed payments and the one's that have a pre authorisation payment on their cards and fail to have the funds for that payment otherwise all you need is to be over 18 with a card.

It's not a line of credit so you don't need all the character assassination like you would get when applying for the creditcard lol.

My whole family do AfterPay and without a problem.

ZipPay is the more difficult to get as they do require all your personal details eg; employment 

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