Payright: What is it and how does it work?

Signing up for Payright is pretty straightforward. You can complete the application online or even in-store with the help of a participating merchant.

To sign up for using the service, you’ll need to meet the following eligibility criteria:

• Be 18 years or older.
• Be an Australian citizen or permanent resident.
• Earn verifiable income.
• Provide an active debit or credit card in your name to authorise regular direct debit repayments.
• Hold a valid Australian drivers licence and one other form of identification, such as an Australian passport or Medicare card.

Even though the process only takes a few minutes, you may be asked to provide additional information, such as your bank statements and employer details, in order to assess your suitability for credit.

With Payright, you can be approved for up to $10,000 and pay for your purchases through flexible payment plans spread over three to 36 months. For a home improvement project, you could gain approval for an amount between $10,000 and $20,000 and pay it back over 48 to 60 months.

To make a payment using Payright, you’ll need to fill out a quick application form on your mobile, providing the details of the item you wish to buy from a participating retailer. Payright will then run some quick checks at its end and give you a decision within a few minutes. 

Payright is committed to responsible lending, and it may run a credit check on you before approving you to use the service. However, a credit check is only conducted with your consent. When you apply for a Payright loan, the BNPL firm will send you an SMS asking for your consent to carry out a credit check. 

After receiving your consent, the firm will run some ID and credit checks to ascertain your suitability for credit. If your application is approved, you will be required to enter into a Credit Repayment Schedule, which lays down the amount of credit available for the purchase, your repayment schedule and the fees payable by you. Note that the firm holds the right to reject your application if they find you unsuitable for credit. 

Once approved, you can go ahead and purchase the intended item from the participating merchant. However, you may be required to pay an initial deposit, depending on the retailer you are buying from.  You are allowed to make additional repayments and close a payment plan at any time by repaying the outstanding amount in full, but you may be charged a payment processing fee in some cases. 

It’s possible to use a single Payright account for making multiple purchases if your credit limit allows for it. However, you only make one repayment per account, as Payright bundles up all your active plans for easy account management. Note that you’ll need to fill in  a new application each time you wish to make a purchase using Payright, and a repeat purchase fee applies.

Even though Payright doesn’t charge you any interest on purchases you make, there are some charges that you need to pay for using the service.

For plan amounts up to $10,000, you’ll pay a maximum establishment fee of $59.90. Plans up to $20,000 in the home improvement category attract an establishment fee of $89.90. Additionally, you pay a monthly account-keeping fee of $3.50 and a payment processing fee of $2.95 each time you make a purchase.

If you wish to set up more than one payment plan, you won’t have to pay the establishment fee again. However, a $19.95 repeat purchase fee will apply.

Missing a payment will see you paying a late payment fee of $12.95. If a payment remains due for seven days, it will be considered a default, and you could be hit with a default penalty amounting to $29.95.

According to the Payright website, you can use the service to pay at 2,000+ stores across different retail categories. Besides your regular shopping needs, Payright can be used to buy jewellery and pay for home improvement projects as well.

You can search for a specific merchant or browse through the list of merchants that accept Payright on its website.

Payright has also launched a bill payment service that can be used to split your bills (up to $1,000) into monthly or fortnightly instalments spread over a period of three months. However, you can only pay quarterly or annual bills that are not overdue with this service.

Just like any other buy now, pay later service, using Payright could work for you if you are careful about not accruing too much debt and earn a regular income to pay your instalments on time. Unfortunately, it’s easy to fall into a debt trap if you are given to spending recklessly. Ultimately, buy now, pay later is just another form of credit. Used responsibly, It could be a helpful tool to manage your finances but you need to avoid falling into a debt trap by only purchasing items you can afford to repay.

It’s generally a good idea to budget for your repayments before using a buy now, pay later service to make sure you can repay the money you borrow. However, it may happen that your circumstances change, and you are unable to afford your repayments at a later stage. If you find yourself in such a situation, Payright offers hardship assistance and encourages you to contact them to find a solution that works for both the company and you.