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dejadeadnz

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#238132 4-Jul-2018 12:34
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One of the absolute head-scratchers to me amidst all the debates/controversies over the (admittedly) high inter-change fees charged by banks and credit card companies is the media's absolute refusal to hold the retailers to account for the mass adoption of services like Afterpay, Partpay and Laybuy etc where consumers are offered interest free weekly instalment payments by these providers in return for fees (paid by the retailers) described by Partpay as being similar to accepting credit cards. Retail NZ constantly carps on about how people paying by cash or EFTPOS are forced to subsidise those paying by CC. Well, by offering those services, aren't they doing the same thing on the majority who don't need/want to use such services?

 

The other thing that makes me laugh is that if the 0.5 to 1% extra supposedly unjustified interchange fees charged by the card issuers/banks are so unbearable, imagine what kind of margins are being added by these instalment providers, when as I understand it most of them take payment out of the user's registered debit and/or credit card. As usual, important debates about important issues are just endlessly clouded by BS and spin from both sides.

 

As someone who have provided voluntary credit law and financial advice, these services also massively concern me. Really, anyone who "needs" to use these to be able to afford a shirt or whatever from a mid-market boutique has a lot more to think about than where to shop.


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networkn
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  #2048918 4-Jul-2018 12:46
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Well, as someone who works with retailers, I see these are very different situations. 

 

One is a convenience to the customer (and I guess to the retailer) to make the payment process faster. It's not a sales incentive, because it's only the tiniest % of people who would go to one food store over another, over one having contactless payment. 

 

The other is a sales incentive. Allowing easier Layby, extended terms on smaller items, and having that automated and user being able to see what's where and for the retailer to also be able to nicely see what inventory is currently being paid off, is quite a benefit to both parties. 

 

The morality of the situation is something different.

 

 


rugrat
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  #2048930 4-Jul-2018 13:06
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networkn:

 

Well, as someone who works with retailers, I see these are very different situations. 

 

One is a convenience to the customer (and I guess to the retailer) to make the payment process faster. It's not a sales incentive, because it's only the tiniest % of people who would go to one food store over another, over one having contactless payment. 

 

 

 

 

 

 

Credit cards also delay payment, plus provide nice record what spent each month.

 

Yep, I’m not going to not shop somewhere because of contactless not available, but if credit card not available or surcharge done if pay by CC will look at shopping else where, so can be a sales incentive.


 
 
 
 


Lias
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  #2048954 4-Jul-2018 13:40
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I realize I'm probably a minority, but I do tend to avoid non pay-wave shops within reason.





nickb800
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  #2048961 4-Jul-2018 13:48
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I suspect that RetailNZ is more representative of small independent retailers when they speak on the interchange fee issue. Little businesses that see a monthly bill with credit fees and then complain, not considering the value provided in return for the fee. They also suffer a lack of scale to negotiate sharp fees.

 

For bigger/chain businesses then they are more likely to see the value offered by credit cards in terms of increasing customers purchasing ability or speeding up transactions with paywave. We often see in these discussions that supermarkets e.g. get a really good deal on interchange fees. These sorts of businesses wouldn't complain so much.


tchart
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  #2048996 4-Jul-2018 14:01
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networkn:

 

The other is a sales incentive. Allowing easier Layby, extended terms on smaller items, and having that automated and user being able to see what's where and for the retailer to also be able to nicely see what inventory is currently being paid off, is quite a benefit to both parties. 

 

 

There is a minimum spend on PartPay so I dont think people will be buying "a shirt". Can you even use it in store? I thought it was online only.

 

I actually used PartPay for the first time the other day. I didnt need to use it but it popped up at the online checkout and getting "significant other" signoff on 4x$85 payments was easier than explaining I need to spend $340. I dont have any other HPs but I have in the past had "interest free" deals from Noel Leeming etc with those terrible GE cards - for which you pay $55 a year for plus there is usually a serious minimum to get any interest free deals. The interest free terms are also usually really long compared to 6 weeks for part pay (1st payment plus 3 x fortnightly payments).

 

I've actually been impressed with PartPay. Everything was seamless, they send (text and email!) reminders that your card will be charged tomorrow etc. Compared to GE I'd say its way more moral and didnt cost me anything to use.

 

The benefit however is that in some cases spreading the cost over 4 payments means a sale for the retailer rather than a lost sale.

 

Im not an advocate for PartPay but TBH I'd say its win win for both parties.


dejadeadnz

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  #2049219 4-Jul-2018 19:56
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tchart:

 

There is a minimum spend on PartPay so I dont think people will be buying "a shirt". Can you even use it in store? I thought it was online only.

 

 

Country Road and Barkers both have deals with one of the part payment providers and you can use them in store.


vexxxboy
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  #2049271 4-Jul-2018 21:16
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i use them all the time but i dont have any credit cards , just a debit card , so i use the them like a credit card without the interest or charges and i find there are enough stores that i can find the thing i need fairly easy . Oxipay is my favourite as the payments are spread over a longer period.





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