Motorists buying petrol now have a number of 'buy now pay later' options. File photo. Photo: RNZ / Dan Cook
Mobil, Z, Caltex and Waitomo petrol stations are offering motorists new ways to pay for their fuel, but there are concerns that struggling households could end up in more debt.
Z Energy now offers Afterpay at Z and Caltex stations, and Waitomo and Mobil have signed up to the Kora card scheme.
Afterpay allows people to pay off a purchase over four instalments, but late fees of up to 25 percent of the original purchase price, or $68 can be charged, whichever is lower.
Kora gives members cards to use at Mobil and Waitomo. They then have the option of paying off their balance weekly, fortnightly or monthly. It charges a $2 per month fee and offers a discount of 10c a litre, but people can be charged $65 if a payment is dishonoured or delayed, and interest of 2.5 percent per month if the balance is not cleared by the due date.
Financial coach Shula Newland said it could be a useful option for people who could smooth out the way they paid for their fuel.
"But I think it goes back to the fundamentals - why are they using it in the first place? They are using it because they are struggling.
"The fact they are struggling means they should really reach out and get help. It's just another indication of people not being able to pay for things upfront."
Banking expert Claire Matthews said she was concerned.
"Fuel is a day-to-day living cost, and not something that should be funded by debt. The same applies to groceries. I understand that there will be occasions where a fuel purchase may be needed when funds aren't available, but buy now pay later is not the way to manage that situation."
A spokesperson for Z could not say how many people were using Afterpay.
"Z Energy is proud to offer customers choice when it comes to payment options. Afterpay is a popular payment method for many New Zealanders, and we are pleased to add it to our existing suite of options we provide customers who choose to shop with us. As Afterpay is a recent addition to Z's accepted payment options, customer awareness of this is in the early stages, as is the uptake."
She said it had safeguards built in, including credit checks and credit reporting,
A spokesperson for Afterpay said it offered similar services in other locations around the world, and it was designed to give customers flexibility.
"We are also now adhering to all BNPL regulatory requirements in New Zealand, including requiring customers to undergo credit checks and consent to credit reporting."
Kora said it took its responsibilities very seriously.
"The concept of paying for fuel on account is not really any different to anyone who does not use cash, eftpos or a debit card to pay for fuel."
