In a submission to a Senate inquiry into credit and financial services, the Foundation for Alcohol Research and Education (FARE) say vulnerable people are being enticed into buying alcohol by extremely low upfront costs associated with “buy now pay later” services.
FARE says services such as Afterpay and zipPay allow people to buy and receive alcohol items and pay for the purchase over time. This is giving access to alcohol to vulnerable people, the group argues.
The group says there is the chance that this practice will increase alcohol and credit dependency among the most vulnerable in the community.
One of the services mentioned is Afterpay which lets customers pay just a quarter of the cost upfront and pay the balance in interest free instalments.
ZipPay is a similar service which offers users a line of interest-free credit up to $1000 which they can pay back weekly, fortnightly or monthly.
FARE chief executive Michael Thorn said these services were “normalising” the purchase of cheap alcohol alongside goods such as fashion and electronics.