OpenPay is no longer operating. It may not be used for new purchases, though existing customers must still pay off their remaining instalments.
Openpay is an innovative online and in-store payment solution enabling you to purchase now and pay later, with no interest. Openpay is available in Australia and New Zealand, spanning across different industries including retail, automotive, home improvement, medical and more.
Find out how the platform works in this guide.
How does Openpay work?
1. Signing up
Signing up for the service is simple. You first download the Openpay app from the App Store or Google Play Store. Then, you register basic information through the app, linking your new Openpay account to your Visa or Mastercard (credit or debit). Openpay will give you an instant response to your application and once approved, you can use Openpay right away.
You're also able to sign up for Openpay in-store when making a purchase.
2. Purchasing with Openpay
Once your Openpay account has been approved, you can use Openpay at more than a thousand participating merchants across Australia and New Zealand. These can be brick-and-mortar shops, home delivery businesses and online stores.
At the point of purchase, you need to choose Openpay as the payment option and select from among several repayment options using the app.
3. Repayments
After selecting Openpay as your payment method, you'll receive an instant decision from the app and, once approved, you'll be responsible for making the agreed repayments every two weeks. Repayments are automatically deducted as scheduled from your linked Visa or Mastercard. You can also make a payment early through the Openpay apSee the full list of stores with Openpay
Interest-free. Openpay works like a no-interest loan. You pay back the amount of the purchase without needing to pay any interest.
Borrow only as needed. Since you use Openpay at the point of purchase, you'll never be stuck with borrowing more (or less) than what you need.
Quick application. It'll take just a few minutes to download the app and sign up. Everything's done electronically and you'll get a decision instantly.
Instant in-store purchases. As long as the store is a participating business, you simply select Openpay as the payment method to complete the transaction.
You choose the repayment plan. At the point of purchase, Openpay will give you several repayment schedule options. You can choose the repayment plan best suited to you.
Automatic deductions. Unless you specifically choose to pay cash, check or money order, Openpay will automatically deduct the agreed repayment every two weeks from your linked Visa or Mastercard.
No processing fees for certain plans. If you choose a two-month plan you won't need to pay any processing fees.
Advance repayments allowed. You're able to make early repayments at no extra cost.
Payment reminders. Openpay sends out reminders before your scheduled repayments.
What do Australians think of Openpay buy now pay later?
4.04/5 overall for Customer Satisfaction — lower than the average of 4.17
4.09/5 for Trust — lower than the average of 4.38
4.01/5 for Customer Service — lower than the average of 4.08
Openpay is interest-free, meaning you won't have to pay any interest on your outstanding balance. However, Openpay charges certain fees in the following cases:
No interest. You will not be charged interest to use Openpay.
Plan management fees. These vary based on the plan selected and the price of your purchase, but will not exceed $5 per fortnight.
Deposit. A 10% deposit is required for purchases under $2000, and a 20% deposit is required for purchases over $2000.
Late fees. Openpay may charge you a late payment fee if you fail to make repayments on time, but these are capped.
How do I sign up for Openpay?
Signing up for Openpay is quick and easy:
Download the Openpay app from the App Store or Google Play Store.
Fill out the electronic application within the app. This includes simple, basic identifying information.
List the Visa or Mastercard (credit or debit) you want linked to your Openpay account and pay a small initial security deposit.
Instantly receive an approval or rejection.
You can also sign up for Openpay at the checkout of participating retailers.
To be eligible for Openpay, you must meet the following criteria:
Be at least 18 years of age
Have a valid Australian or New Zealand ID
Have a verifiable email address and two contact phone numbers
Provide a valid Visa or Mastercard (debit or credit card)
Should you offer Openpay?
Offering Openpay as a payment option in your store and online has a range of benefits for store owners. However, there may also be some potential drawbacks:
Pros
Increase conversions. Customers are more likely to make the transition from browser to buyer if your products are more affordable.
Increase average transaction value. Customers are more likely to make additional purchases when given the option to spread the cost.
Receive full upfront payment. Openpay offers full upfront payment to merchants (minus fees).
Increase brand loyalty. Flexible repayment options give customers good reason to make repeat purchases.
Fee refund on returns. If a customer returns something, Openpay will return almost all merchant fees.
Marketing opportunities. All of Openpay’s partnered merchants are featured on its website.
Cons
Fees. Merchants who offer Openpay must pay a merchant fee on all transactions made through the service. This fee is usually a percentage of the cost of the transaction. Fees will differ depending on your agreement with Openpay and the cost of the purchase.
Have more questions about Openpay?
You can choose your own payment schedule when you set up your account. However, you will always need to pay an initial instalment at the time of purchase. For most Openpay merchants and retailers, you will need to pay a 20% deposit at the time of purchase.
If you are unable to make a payment on time, you should contact Openpay directly to discuss your options.
If you need a refund of your purchase, any payments you've made will be returned to your linked credit card or debit card and any future instalments will be waived. Any processing fees already paid will not be refunded.
Openpay is PCI DSS Level 1 certified compliant meaning it uses the highest level of secure technology to help protect your information.
Openpay charges retailers to be listed on the platform and also makes money from fees charged to customers.
The minimum spend varies between businesses that offer Openpay. The minimum spend can range from $1 to $50 depending on the business.
Your payments will be automatically deducted from the credit or debit card you used to sign up. If you want to make an early payment, you can do so using the Openpay app.
Elizabeth Barry was the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review. See full bio
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Elizabeth has written 211 Finder guides across topics including:
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What are the several payment options roughly? Do I have to have money in my account when I first purchase something ?
ArnoldJanuary 6, 2018
Hi Marley,
Thanks for your inquiry
You may make the installments in the following ways:
1. By your Nominated Card;
2. In cash in person at our office at Level 40, 120 Collins St, Melbourne, VIC 3000 between 9am to 5pm Monday to Friday; and
3. By cheque or money order sent by post to GPO BOX 5262, Melbourne VIC 3001 quoting your Openpay Plan Number.
Unless you inform openpay that you wish to make a particular installment by cash, cheque or money order, you direct and authorize them to charge the amount of any installments to your Nominated Card when the installment is due.
At the time you make a purchase which is, or is to be, financed under this credit contract, you must pay them an initial payment (“first installment”) inclusive of any Establishment Fee and a Plan Management Fee for the installment. This first installment must be paid using a MasterCard or Visa debit or credit card issued in your name and is payable within the Participating Merchant’s store at the time of purchase or, where you make a purchase from a Participating Merchant’s website, at the time of your online purchase.
Hope this information helps
Cheers,
Arnold
JoshuaDecember 23, 2017
Do I need funds in my account straight away for fist time purchase using openpay?
ArnoldDecember 28, 2017
Hi Joshua,
Thanks for your inquiry
Your credit or debit card must be adequately funded at the time of purchase because you’ll be charged with the first installment.
Hope this information helps
Cheers,
Arnold
MaliliNovember 9, 2017
I had initially created an Openpay account 4 weeks ago and was given a customer ID number. I didn’t end up going through with it. Now I have a different item I want to purchase when I log in to Openpay account app it gives me a different ID # and says to provide customer ID to the Sales assistant at the desk. Was I meant to pay anything or set up installment arrangements or is this the second step after approaching sales assistant?
JonathanNovember 10, 2017
Hi Malili,
Thank you for your inquiry.
At the time you make a purchase, you must pay them an initial payment (“first installment”) inclusive of any Establishment Fee and a Plan Management Fee for the installment. This first installment must be paid using a MasterCard or Visa debit or credit card issued in your name and is payable within the Participating Merchant’s store at the time of purchase or, where you make a purchase from a Participating Merchant’s website, at the time of your online purchase.
Hope this helps.
Cheers,
Jonathan
LorrindaNovember 3, 2017
Does open pay check our credit files ?
JonathanNovember 4, 2017
Hi Lorrinda,
Thank you for your inquiry. On the FAQ’s page of Openpay it was mentioned:
“In some instances you will be asked to consent to a credit check. This will depend on the purchase you are making, you will be clearly asked to consent to this check before a purchase is made.”
Hope this helps.
Cheers,
Jonathan
monikaAugust 31, 2017
Hi there,
is there a admin fee?
Is there a transaction fee?
JonathanAugust 31, 2017
Hello Monika,
Thank you for your question.
Openpay does not charge any interest and depending on the plan selected and the participating merchant in which you are shopping at, there may be no fees at all. In some, a small plan management fee may be applicable to each repayment. This fee varies depending on the merchant in which the purchase is being made. In the case of higher value purchases an establishment fee may apply and it will be payable by approved applicants only in line with the initial payment. All costs will be disclosed before you make a purchase.
Hope this helps.
Cheers,
Jonathan
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What are the several payment options roughly? Do I have to have money in my account when I first purchase something ?
Hi Marley,
Thanks for your inquiry
You may make the installments in the following ways:
1. By your Nominated Card;
2. In cash in person at our office at Level 40, 120 Collins St, Melbourne, VIC 3000 between 9am to 5pm Monday to Friday; and
3. By cheque or money order sent by post to GPO BOX 5262, Melbourne VIC 3001 quoting your Openpay Plan Number.
Unless you inform openpay that you wish to make a particular installment by cash, cheque or money order, you direct and authorize them to charge the amount of any installments to your Nominated Card when the installment is due.
At the time you make a purchase which is, or is to be, financed under this credit contract, you must pay them an initial payment (“first installment”) inclusive of any Establishment Fee and a Plan Management Fee for the installment. This first installment must be paid using a MasterCard or Visa debit or credit card issued in your name and is payable within the Participating Merchant’s store at the time of purchase or, where you make a purchase from a Participating Merchant’s website, at the time of your online purchase.
Hope this information helps
Cheers,
Arnold
Do I need funds in my account straight away for fist time purchase using openpay?
Hi Joshua,
Thanks for your inquiry
Your credit or debit card must be adequately funded at the time of purchase because you’ll be charged with the first installment.
Hope this information helps
Cheers,
Arnold
I had initially created an Openpay account 4 weeks ago and was given a customer ID number. I didn’t end up going through with it. Now I have a different item I want to purchase when I log in to Openpay account app it gives me a different ID # and says to provide customer ID to the Sales assistant at the desk. Was I meant to pay anything or set up installment arrangements or is this the second step after approaching sales assistant?
Hi Malili,
Thank you for your inquiry.
At the time you make a purchase, you must pay them an initial payment (“first installment”) inclusive of any Establishment Fee and a Plan Management Fee for the installment. This first installment must be paid using a MasterCard or Visa debit or credit card issued in your name and is payable within the Participating Merchant’s store at the time of purchase or, where you make a purchase from a Participating Merchant’s website, at the time of your online purchase.
Hope this helps.
Cheers,
Jonathan
Does open pay check our credit files ?
Hi Lorrinda,
Thank you for your inquiry. On the FAQ’s page of Openpay it was mentioned:
“In some instances you will be asked to consent to a credit check. This will depend on the purchase you are making, you will be clearly asked to consent to this check before a purchase is made.”
Hope this helps.
Cheers,
Jonathan
Hi there,
is there a admin fee?
Is there a transaction fee?
Hello Monika,
Thank you for your question.
Openpay does not charge any interest and depending on the plan selected and the participating merchant in which you are shopping at, there may be no fees at all. In some, a small plan management fee may be applicable to each repayment. This fee varies depending on the merchant in which the purchase is being made. In the case of higher value purchases an establishment fee may apply and it will be payable by approved applicants only in line with the initial payment. All costs will be disclosed before you make a purchase.
Hope this helps.
Cheers,
Jonathan