Buy-now-pay-later services provide immediate access to essentials for low-income New Zealanders

Families in Kaikohe are using Afterpay to buy groceries, gas, and vet visits to ensure they have food on the table each week. The service allows users to purchase goods and services by paying a quarter of the cost upfront and the remaining total in three fortnightly installments. In Kaikohe, the service is accepted at the Z petrol station, the chemist, The Warehouse, and a mechanic's garage. One resident, Alex Tango, used the service that week to pay for a tank of gas costing $148, a $170 grocery shop at The Warehouse, and a vet bill of just under $300. While repayments are interest-free, users who miss an installment or are late with a repayment are charged a fee. The Salvation Army reports some clients are spending over $367 a week in buy-now-pay-later repayments. These payments are often made from government benefits, reducing the available income for individuals and families.