Twice a year, Afterpay Day sparks an internet frenzy. Big brands launch their splashy campaigns, influencers share their discount codes over their latest #haul videos, and retailers promise the deal of a lifetime. It feels like the perfect moment to treat yourself. Think Black Friday with a sugar hit.
But there’s another side to the story.
Afterpay Day seems like the “ultimate sale” for Kiwis, but under the hood, it’s a recruitment drive designed to keep you in debt.
What Afterpay Day Really Is
On paper, Afterpay Day seems like a great idea. With it’s ‘interest free’ model and irresistible deals – 50% off Dysons, hundreds off giant TVs, flash deals on fashion, beauty, gaming consoles, kitchen gadgets, you name it – you’re lured to believe you’re making real savings. That may be true if your superpower is unshakable self-control.
In reality, it’s the BNPL (Buy Now, Pay Later) industry’s answer to the fishing trip – to cast the line, reel in as many new customers as possible, and hook them on the idea of buying more than they can afford right now.
The Illusion of a Bargain
We get it, the deals can look genuinely good. Half-price electronics. Big brand sneakers for less than $100. Designer handbags at a fraction of the RRP.
But here’s the uncomfortable truth – if you weren’t planning to buy it before you saw it on Afterpay Day, you’re probably not saving money. You’re spending money. The “bargain” you scored is money that could’ve gone towards something that you genuinely wanted and have been working hard to save for, or at the very least towards your emergency fund.
Why It’s Financial Quicksand
BNPL normalises “micro-debt”: small purchases split into smaller payments. On their own, they might seem manageable, but they can erode your disposable income over time.
At the end of the day, debt is debt, no matter how small or manageable it seems. It’s your kryptonite to making real and meaningful financial progress. The quiet rodent gnawing at your financial foundations preventing you from getting ahead.
Events like Afterpay Day don’t just target savvy bargain-hunters. They target those already under financial pressure – those living paycheck-to-paycheck, students, or young workers trying to keep up with rising living costs.
Interest-Free… Until It’s Not
BNPL companies like Afterpay survive on two main revenue streams:
1. Retailer fees – merchants pay a percentage to offer Afterpay, because it increases sales by as much as 40% during Afterpay Day.
2. Late fees – the polite little threat lurking in the fine print.
Miss a payment? Late fees can hit up to 25% of the original purchase price (often capped, but still a decent smack in the face). Miss more than one? You’re in a rolling cycle of owing more than you planned, with your next payday already partly spent before you even get there.
Keeping You Hooked for the Long-Run
If your tendency is to spend, not save, your aim is to create the least amount of friction possible to part with your hard-earned cash.
Afterpay makes spending frictionless. They know you’ll sign-up for the bargains, but they’re riding on you staying for the “convenience.” You buy once, the app sits on your phone, and next time you’re online shopping at 11 p.m., it’s just too easy. No painful checkout total. No moment to pause.
And each time you successfully repay, they’ll quietly increase your spending limit. That $200 cap becomes $400. That $400 becomes $800. Suddenly you’re juggling payments on four or five different purchases, wondering why payday never feels like payday anymore.
This isn’t an accident. It’s the business model.
Eroding Long-Term Financial Gains
BNPL encourages impulse spending and to forget about the long-term consequences. It develops a “short-term win” mentality of “getting the thing now” because YOLO.
But every Afterpay Day “win” is a potential future loss. A loss of flexibility. A loss of control. A loss of the financial breathing room that could’ve kept you out of real debt later on.
If you’re already behind on bills or juggling multiple repayments? Afterpay Day isn’t an opportunity – it’s a shovel. One you’ll use to dig yourself a deeper hole.
What You Can Do Instead
You don’t have to use Afterpay to get the real deals in life.
If you actually want to come out ahead financially – skip Afterpay Day entirely.
Here’s what you can do instead:
- Plan your big purchases. Decide in advance what you want, set a target price, and save for it. If it goes on sale – bonus! If not, at least you’re still in control.
- Audit your spending. Look at what’s already locked into automatic payments. Are you as free as you think you are?
- Treat deals with suspicion. If it’s so good you can’t pass it up… ask yourself why. Would you buy it at full price? Do you actually need it?
- Build an emergency buffer. Having a few hundred (or thousand) in savings feels a lot better than snagging a pair of shoes for half price.
The Bottom Line
Afterpay Day is promoted as a chance to save money, but it’s also a powerful marketing push for a payment method that can lead to unplanned spending and long-term repayment commitments.
If you genuinely want to get ahead financially, consider sitting this Afterpay Day out. Instead, focus on planned purchases, savings goals, and building a buffer. Your bank account will thank you. Your future self will thank you. And your real life will be better for it.
