This is the opposite of what our responsible spending limits do. We set out to build Afterpay as a tool to help people make the most of their money and manage their spending responsibly, never to encourage spending more than can be afforded. It’s just not what we’re about. We approve every transaction in real-time, and we don’t allow you to spend if you are behind on repayments. Our spending limits start at around $500 and only increase gradually. The longer you have been a responsible shopper with Afterpay - making all payments on time - the more likely we will be to approve your purchases and the more likely the amount you can spend will increase. We want to grow a community of responsible spenders, not encourage irresponsible spending.
Do I get given a high spending limit to encourage me to spend more money?
Actually, our spending limits start low, at around $500, and increase gradually over time if you are proven to be a responsible spender. If you’re a new Afterpay customer, the amount you can spend will be lower than if you’ve been responsibly using the platform for a long time. We take the time to get to know you, and before each transaction, we assess your ability to make repayments on your short instalment plan using our real-time technology that stops anyone spending too much. But, just as there are circumstances which may lower the amount you can spend (such as missing a payment), good spending behaviour can increase what you can spend with Afterpay. Typically, the longer you’ve been using your account, spending responsibly and making repayments on time, the more likely the amount you can spend will increase.
Does using Afterpay encourage bad spending habits?
Above all else, we are committed to encouraging responsible spending – because anything else is bad for you, bad for our retail partners, and bad for us. When determining which orders to approve, we consider a number of different factors, such as how long you’ve been an Afterpay customer and your payment history. This means we do not approve 100% of orders. The longer you have been a responsible shopper with Afterpay, the more likely we will be to approve your purchase. So no, we do not encourage you to spend money you do not have.