More Aussies turn to Buy Now, Pay Later during pandemic, says Openpay
In July, Mozo conducted research into how the spending habits of Aussies had changed throughout the COVID-19 pandemic.
We found that 25% of Aussies have undergone a financial ‘wake up call’ and are now taking steps to abolish debt, while 39% said they would be spending less money on non-essential things, like eating out.
And according to new research from Buy Now, Pay Later (BNPL) platform Openpay it looks like that money savvy mindset has set in.
Openpay found that 70% of Aussies are spending more consciously than they were before COVID-19. More than half (60%) of Sydneysiders and Melbournians have even limited themselves to ‘essential spending’ only.
Some of the purchases Aussies are choosing to delay include, upgrading or replacing furniture and home renovations and improvements.
Buy Now, Pay Later usage soars during pandemic
Although many Aussies are tightening their budgets, almost a quarter of people in Sydney and Melbourne have opened a BNPL account to manage their spending - 31% of respondents have at least one BNPL account, while a third revealed they had more than one.
“With the recent impact on personal finances due to COVID-19, frivolous spending is a thing of the past. Despite this, essential items still need to be paid for,” said chief marketing officer global, Openpay, Georgina Whalley.
Those in Melbourne appear to be the most financially vulnerable, which could be a result of the current lockdown restrictions, with 45% saying they use their BNPL account at least once a week, compared to those in Sydney (34%) and Brisbane (22%).
In terms of what Aussies are choosing to use their BNPL account for, 60% said their spending has been on healthcare for either themselves, their children or pets.
“Given that Australians are even worried about spending when it comes to their teeth, with 22% of those surveyed saying they have put off spending on essential dental work due to economic difficulty or fear, BNPL is a means of ensuring our health isn’t left to suffer,” said Whalley.
Returning to pre-COVID spending could take a while
While there’s no telling when the COVID-19 pandemic will end, it could still take some time for many Aussies to feel comfortable spending again.
Overpay found that one in three respondents will be back to their regular spending habits within the next six months, another third said it would take six to twelve months and one-fifth believe it will take one to two years.
So if you’d like to get a jumpstart on building your savings stash for a post-COVID world, you’re going to need a top notch savings account! You can compare more than 200 savings accounts from over 60 banks by using our savings account comparison tool.
Compare savings accounts - last updated 29 March 2024
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Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
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Savings Account
5.35% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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High Interest Save Account
5.10% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $200 to either Spend or Save account from an external source each month.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
CompareCompareHigh Interest Save Account
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
- Maximum rate
- 5.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Account can only be opened through iOS or Android app, but may be accessed through internet banking.
Read our Mozo Review to learn more about the ubank High Interest Save Account
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Reward Saver Account
5.25% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
CompareCompareReward Saver Account
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
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Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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