ZipMoney vs Afterpay

Look out for repayment terms, late payment fees and flexible payments.

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By

Elizabeth Barry

Updated

Fact checked

Are you shopping for interest-free finance platforms? There are several options available, with varying costs and features. To help you narrow down your options, we've compared 2 prominent providers: Afterpay and Zip Money.

The main difference between them are credit limits, interest-free periods, fees and repayment flexibility. While both options allow you to buy now and pay later, Zip Money functions more as a line of credit. It has an interest-free period, after which interest will be charged on your outstanding balance.

Be sure to keep in mind credit checks, repayment terms and late fees in your comparison.

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Updated regularly
Product Interest rate (p.a.) Min. loan amount Max. loan amount Establishment Fee Credit Check Required?
Zip Money
Zip Money logo
25.9%
$1,000
$5,000
$0 up to $99 based on credit limit.
Yes
More Info
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AfterpayzipMoney
Credit limit
Starts at $500 and gradually increases or decreases based on good or bad spending behaviour.
Between $1,000 and $3,000.
Interest
No interest.
Interest-free period of 3 months.

After this, interest will be charged at 19.9% p.a.

Repayments
To be made over 6 weeks.
Minimum monthly repayments apply. The minimum repayment will be either stated on your contract or will be 3% of the amount owed, whichever is greater.

Any outstanding repayments after the interest-free period will incur interest at 19.9% p.a.

Payment instalments
4 instalments, paid every 2 weeks; 25% of the price is paid upfront.

The option for no upfront payment is available for Platinum and Mint tiers and eligible accounts in the Pulse tier.

Choose to pay weekly, fortnightly or monthly.

Your purchase will be broken into equal instalments for the duration of the interest-free period, unless you state otherwise.

Upfront and ongoing fees
None.
A one-off establishment fee may apply, depending on the credit limit you apply for. The fee starts from $25.

A $6 monthly account fee applies when you have an outstanding balance.

Late payment fees
Starts at $10. The late fee is never higher than 25% of the purchase price or $68, whichever is less.
A $15 late fee will be charged 21 days after your due date.

If the payment is rejected by the bank, a dishonour fee of $10 will be applied to your account.

Payment flexibility
The number of instalments cannot be changed, but you can make custom payments and pay more or less than the payment due. This feature can be accessed only on the website.
You have the option of changing the frequency of your repayments. You can change it to weekly, fortnightly or monthly, so long as it covers the minimum amount owed.
Sign-up
Via app for in-store and online shopping. Registering prior to online shopping is not required; the account can be created afterwards.
You can sign up for Zip Money online.
Find out more
Eligibility
Afterpay uses a mandatory ID verification process.

To qualify for Afterpay, you must:

  • Live in Australia.
  • Be over 18.
  • Have a valid and verifiable email address and mobile phone number.
  • Use a valid Australian credit or debit card.
  • Capable of entering into a legally binding contract.
To qualify for Zip Money, you must:
  • Be over 18.
  • Be an Australian citizen or permanent resident.
  • Be employed (certain pensions may also be accepted).
  • Earn more than $300 of primary income per week.
  • Have a good credit history.
  • Have a valid and verifiable email address and mobile number.
Credit check and score
No credit check. Late payments are not reported.
Zip may need to perform a credit check to confirm you can make repayments. They could disclose if you've met your payment obligations and if you've committed credit infringements to credit reporting bodies.
Availability
Elizabeth Barry's headshot
Journalist

Elizabeth Barry is an experienced journalist with over 10 years of expertise in personal finance, contributing to outlets like the ABC, Sydney Morning Herald, and 7News. She holds a Master of Arts in Creative Writing and a Bachelor of Arts in Communication from the University of Technology Sydney, and has earned multiple award nominations, including a Highly Commended recognition at the 2017 Lizzies. Elizabeth began her career at Finder in 2013, progressing through roles to become Lead Editor, where she oversaw a wide range of personal finance coverage until 2024. See full bio

Elizabeth's expertise
Elizabeth has written 210 Finder guides across topics including:
  • Banking
  • Personal finance
  • Investing
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