Afterpay vs humm: Which is a better service for me?

Both Afterpay and humm are popular BNPL services with a growing user base. The service model is similar, but the right service for you will depend on your individual needs as the features available on both are different.

Here's a list of some important differences between Afterpay and humm you should know about:

• Spending limits and repayments
  
  Afterpay allows you to shop now and pay later up to a maximum limit of $1,500. When buying with Afterpay, you need to pay 25 per cent of the amount at the time of purchase. The remainder is payable in three equal instalments that fall due every two weeks. If you wish to pay back your purchase sooner, you can always make a payment before the due date, and you won't be charged any penalty or fees for paying early.
  
  Like Afterpay, humm allows you to divide the cost of your everyday purchases up to a maximum limit of $2,000 into smaller instalments (or 'slices') using its 'Little things' wallet. You can repay 'Little things' in five fortnightly or 10 weekly slices.
  
  Additionally, humm offers a 'Big things' wallet to cover payments for an extensive range of products and services up to a maximum of $30,000. You can repay any 'Big things' purchased with humm over six, 12, 24 or even 60 months, without paying any interest. You can make additional payments on any active purchase during the repayment term without penalty or extra fees.
  
  Interestingly, humm gives you the flexibility to choose the day that you prefer to make your repayments. With Afterpay, if you buy something today, your next payment will be scheduled in two weeks from that day. However, humm gives you the option to match up your regular purchase payment day with your pay day to make it easier to budget for your repayments. It's also possible to change an individual upcoming payment date on humm.
  
  

• Fees and costs
  
  Afterpay doesn't charge you any monthly fees for using the service. Your repayments are interest-free, but you could be hit by a $10 late payment fee if you miss an instalment. If the payment continues to remain pending for another week, you'll need to shell out a further $7 as additional fees.
  
  However, Afterpay has some caps in place to prevent consumers from running into debt. For smaller orders under $40, Afterpay promises not to charge you more than $10 in late fees. For orders over $40 and up to $272, the late fee is capped at 25 per cent of the purchase price. And, if you paid more than $272 for an order, the maximum late fee you can be charged by Afterpay is $68.
  
  Like Afterpay, Humm doesn't charge you any monthly fees for using the 'Little things' wallet if you pay off your purchases in 10 weeks or five fortnights. If you need longer to pay back for the 'Little things' you purchased with humm, you can spread out your repayments over 10 fortnights, but you'll have to pay a monthly fee of $8 for using this feature.
  
  Similar to Afterpay, humm charges no interest on repayments, but late payment fees apply. For purchases less than $65, the late fee is capped at $6 (lower than Afterpay's $10 cap). For the 'Little things' you buy above this amount, late fees are capped at 18% of the purchase or up to $48, whichever is lower. Late fees on 'Big things' purchases are capped at 18% of the purchase price or up to $78, whichever is lower.
  
  Using humm's 'Big things' wallet to plan big-ticket expenses attracts several other costs, even though the repayments remain interest-free. For instance, a monthly fee of $8 applies to all the 'Big things' purchased via humm. You also pay an establishment fee of between $35-90 for larger purchases, depending on the price of the item you buy. For all subsequent 'Big things' purchases on humm, you pay a repeat purchase fee of $22 instead of the establishment fee.
  
  As you can see, the fee structure for humm is a little complicated, especially when you use it for purchasing 'Big things'. To understand the real cost of using the service, there's a handy calculator on the site that lays down all the fees and expenses for you, explaining your options clearly.
  
  

• The number of open orders you can have at a time
  
  With Afterpay, you'll need approval from the platform before every purchase. When you open an account on Afterpay, you'll most likely only be allowed to have one order approved in the first 24 hours. However, you may be allowed to have multiple open orders simultaneously (but up to your approved credit limit) after a few months of using Afterpay regularly and responsibly by making all your repayments in time. Furthermore, if you miss a repayment on an open purchase, Afterpay will not let you make another purchase until all your payments are up to date.
  
  Unlike Afterpay, you don't need approval for making multiple purchases using your 'Little things' wallet on humm. The service allows you to buy as many items you like but within your spending limit.
  
  The 'Big things' wallet on humm works like Afterpay in the sense that you need to get approved by humm before making any purchase. You can get approved online for purchases up to $5,000, but you may need to complete the application process in-store for orders above this price. Note that there's a repeat fee of $22 for every subsequent payment you make using humm's 'Big things'.