Afterpay vs. LatitudePay

By   |   Verified by David Boyd   |   Updated 19 Sep 2023

Afterpay vs Latitude Pay
  • Is LatitudePay a true Afterpay competitor worthy of your consideration?
  • LatitudePay are owned and operated by an established consumer lender.
  • Compare everything from account fees to spending caps for both services.

Afterpay have seen widespread adoption, particularly among key younger demographics in Australia and a plethora of challengers have sprung up, like LatitudePay, who provide the same interest-free finance. If you’re considering LatitudePay as an alternative to Afterpay, this comparison guide will help you decide which one best suits your needs.

How Afterpay works

Established in 2015, Afterpay is now Australia’s most popular buy now pay later (BNPL) service provider. It allows users to make immediate purchases without the need for traditional credit or up-front fees. Through its mobile app, users can shop with Afterpay online, selecting it as a checkout option, or in-store, and both without incurring interest.

To create an account, users must be of legal age (18-years-old) and have a valid debit card or credit card to link with their account for repayments. There is no credit check upon application – simply provide contact information such as your phone number, delivery address, and email address. You will then receive a temporary bar code reflecting your available spend, which will be determined by a pre-authorisation scan of your card.

When shopping online, select Afterpay as a checkout option on a partner retailer’s website. You will be expected to settle the first payment – 25% of the total purchase price – upon shipping, and repay the remainder in fortnightly instalments over eight weeks. You can choose to make manual repayments or set up your account to make automatic deductions. Note that you cannot repay purchases using a bank transfer, BPay, or prepaid card.

Zip Pay

On website

Maximum loan amount



Weekly, fortnightly, or monthly repayments

Late fee



  • Own it now, pay later. Interest free, always.
  • Up to $1,000 for your everyday spending, apply in minutes.
  • No establishment fee.
  • Choose how you repay: weekly, fortnightly or monthly.

Disclaimer: Minimum monthly repayments are required. A monthly account fee of $9.95 applies. This fee is waived each month you pay your statement closing balance, in full, by the due date. Available to approved applicants only. T&Cs apply.


  • Always interest free.
  • Account fee of $9.95 is waived if you have no outstanding balance at the end of the month.
  • Enjoy product features such as Tap to Pay, Zip Bills, Gift Cards, Shop Everywhere, Subscriptions and Refer a Friend.


  • There is a $5 late payment fee if minimum repayment is not paid within 21 days of due date.

How LatitudePay works

Having provided financing for over 2.6 million Australians today, LatitudePay is an interest-free BNPL solution that allows customers to spend up to $1,000 with select retailers. Users pay 10% of the purchase price up-front, satisfying the remaining payments over nine weeks.

Much like Afterpay, signing up with LatitudePay is a minutes-long process. Applicants must be 18-years-old, an Australian permanent resident or citizen, and have a valid credit card or debit card. After qualifying for a quick identification check, customers can use LatitudePay immediately.

Customers can checkout online using LatitudePay with partner retailers or present their account at the register if shopping in-store. Approvals occur in real-time, and once approved, users can keep track of their balance and repayments on the LatitudePay app dashboard and even customise payment dates.

Did you know that you can link a rewards or frequent flyer credit card with your Afterpay and LatitudePay account?

Feature comparison

Repayment frequency

  • Afterpay: Repayments occur in four fortnightly instalments, with the first being an up-front payment of 25% of the purchase price upon shipping. Missing a payment puts you at risk of incurring a late fee, plus an additional fee for missing a payment over seven days.
  • LatitudePay: The repayment period occurs over ten weeks, with the first payment being due upon checkout. Users can schedule automatic repayments via the LatitudePay app or set reminders for manual payments. Shoppers can make additional payments at any time and adjust their repayment schedule as needed.

Borrowing limit

  • Afterpay: Spending limits with Afterpay are more restrictive within the first six weeks of opening an account. The more successful repayments you make over time, the greater your chances of getting approved for a higher budget cap. Per plan, you can make a maximum purchase of $1,500 and hold an outstanding account limit of $2,000.
  • LatitudePay: How much you can spend with LatitudePay will depend on the real-time approval per purchase. A reliable payment history will help increase your limit – you can’t up your spending cap upon request. Users can have six active payment plans so long as the funds are within their current borrowing cap.

Credit check

  • Afterpay: When opening your Afterpay account, there is no credit check. However, a soft credit check is required when shopping for costlier items.
  • LatitudePay: To secure a LatitudePay account, users must have a reasonable credit score, which will undergo a soft check upon application. Should you be approved for an account, varying eligibility criteria from partner retailers may run another credit check when purchasing an item.

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Online & offline use

  • Afterpay: Afterpay lists its partner retailers on its Shopping Directory. Seamless integration allows qualified users to shop in-store and online. First-time online shoppers must input their payment information – something return customers can access anytime thereafter. When shopping in-store, present your barcode at the register. Keep in mind that Afterpay doesn’t approve 100% of orders – whether or not you are one of them will depend on your soft credit check.
  • LatitudePay: In-store, merchants will create a unique LatitudePay plan under your name, which they will confirm via text message or email. To shop online, simply add a product to your cart and checkout using the LatitudePay option. When your order is confirmed, you’ll receive an email reflecting your plan.

Cost comparison

Account fee

  • Afterpay: Using Afterpay is completely free of charge. The only fees you incur are the purchase price itself and potential late fees.
  • LatitudePay: Similar to Afterpay and other BNPL platforms, LatitudePay doesn’t charge an account fee or interest.

Interest rate

  • Afterpay: Users won’t incur any interest when shopping with Afterpay.
  • LatitudePay: There are no interest charges when using LatitudePay. However, some bank issuers will charge a cash advance fee if it interprets your payment plan as an extra expense. Account holders can call up their provider to discuss Merchant Category Codes (MCC) assigned to your payment, explaining that the charge is not cash-related.

Late fee

  • Afterpay: If a user doesn’t make a scheduled payment within the applicable grace period, they will incur a $10 late fee and an additional $7 for missing a payment for more than seven days. Overdue payments will automatically restrict you from making any further purchases until you repay the outstanding amount. If you’re experiencing financial difficulties, Afterpay provides a Hardship Policy to help get users back on track.
  • LatitudePay: An app notification or SMS will inform you of upcoming payments if your automatic payment fails. Miss a deadline and you’ll be charged a $10 late fee. Miss more than three and your spending limit will decrease.

Pros and cons



  • You can shop even when you don’t have the cash on-hand.
  • You can customise instalment amounts according to how much you can shoulder at any given time.
  • You’ll never incur interest on your payments.
  • The application process is achievable in a matter of minutes. You can start shopping with Afterpay almost immediately.


  • You can accrue up to $68 in late fees for missing every payment on a single purchase.
  • You may end up paying more than the actual purchase price.
  • Interest-free terms make it tempting to indulge in impulse shopping.
  • You risk taking on more debt than you can currently afford, even within your spending limit.



  • There is significant purchasing power for shoppers, who can spend up to $1,000 at no interest.
  • You can shop with thousands of partner retailers and the list is still growing.
  • You can pay off your balance early without incurring an early repayment fee.


  • Your late fees can mount up to $50 on a single purchase, can restrict your ability to open up a new payment plan or even lower your spending limit.
  • You can’t purchase “big ticket” items for a lack of financing options.
  • Defaulting on payments can negatively affect your credit rating.

Which is the better service?

The "best" service is the one that meets your specific needs.

LatitudePay, for instance, is ideal for shoppers who don’t plan to make a purchase greater than $1,000 at any given time. With LatitudePay, you can quickly and easily get your hands on items such as FitBits, Apple Watches, gaming consoles, furniture, home improvement items, and the like. On the other hand, Afterpay partners up with a wider range of retailers (10,000 in Australia and New Zealand) and employs a more seamless integration with eCommerce shops. Both have late fees that can add up.

Afterpay and LatitudePay alternatives

Zip, Humm, and Klarna are some of the more popular competitors that you'll see in the market. If you still aren't convinced, our Buy Now Pay Later comparison makes it easy to compare different services like-for-like.