PYMNTS-MonitorEdge-May-2024

Elepay Debuts 180-Day Pay-Later Offering for Property Owners

man working on house exterior

Australian lender Elepay has introduced its latest pay-later solution for property owners.

The Brisbane-based company’s 180-day offering, announced in a news release Tuesday (Sept. 3), is designed to allow property owners to capitalize on their property’s value before selling without having to worry about upfront expenses.

“The 180-day Pay Later Solution is a natural extension of Elepay’s objective to provide fast, flexible short-term lending solutions exclusive for Australian property owners,” the release said.

“Property owners can now invest in pre-listing renovations, property styling, repairs, maintenance, and marketing — all without upfront costs. By deferring payments for up to 180 days, they can enhance their properties with less financial strain.”

As PYMNTS wrote earlier this summer, buy now, pay later options (BNPL) are becoming more common around the globe, though Australia leads the charge on adoption by a wide margin.

According to the latest edition of the PYMNTS Intelligence “How the World Does Digital” report, only a small fraction of consumers paid for their most recent eCommerce purchase using BNPL — roughly 1% in most countries surveyed.

While just 0.9% of U.S. consumers said they had used BNPL to cover their last online purchase, that share nearly tripled to 2.5% for shoppers in Australia. In fact, adoption in Australia was markedly higher than in any other country included in the survey, with the next-greatest share being the Netherlands, at 2.1%.

“BNPL services Afterpay and Sezzle originated in Australia and gained significant traction early on,” PYMNTS wrote.

“As such, many Australian consumers were introduced to BNPL earlier than those in the U.S., allowing more time for adoption and integration into everyday shopping habits.”

In related news, PYMNTS wrote Tuesday about the use of embedded lending among Australian consumers and microbusinesses and small businesses (MSBs).

In Australia, 13% of individuals and 11% of MSBs have recently used embedded lending, with much wider adoption among key segments. For instance, 20% of millennials said they had recently used this type of lending, as have a little more than a quarter of small businesses.

“However, embedded lending users widely experience friction that detracts from their experience,” that report said. “The biggest problem area is the application process. PYMNTS Intelligence’s research reveals other friction points that lenders need to address to enable this type of lending to reach its potential.”

PYMNTS-MonitorEdge-May-2024