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Buy Now Pay Later service Afterpay has announced changes to its Terms of Service. Under the new terms, select customers will now have the option to delay their first payment. All customers will now be able to choose a day of the week to pay their instalment, rather than having the day of purchase automatically be the day of all future payments. An expert has labelled the changes “sensible”.
“This is in contrast to, say, making the first 25 per cent of the payment at the time of purchase or order. “So, potentially, there could be higher risk of ‘larger’ bad debts,” he said, such as “non-paying customers defaulting on 100 per cent of their purchase instead of 75 per cent of their purchase. “But this could well be offset by an increasing customer base and by careful credit assessment.
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