5 days ago
Uber and Uber Eats partner with Afterpay as younger Aussies abandon credit cards
Uber and Uber Eats are partnering with Afterpay as younger Aussies turn away from using credit cards.
Afterpay will be available to Uber and Uber Eats customers in Australia and New Zealand.
The service will be accessible with the touch of a button to a user's wallet for rideshare trips and takeaway purchases.
Afterpay CEO Nick Molner said customers will have greater control for when they pay at the online checkout.
"Bringing Uber on board is a perfect representation of Australians continuing to call for Afterpay as a preferred partner in their lives," Molnar said.
"Afterpay is, and always has been, about providing customers safe and flexible ways to pay in their everyday lives and Uber plays a crucial role in the lives of millions of Australians.
"We're giving customers greater control over how and when they pay via a seamless addition to Uber Wallet."
Food delivery services continue to surge with 54 per cent of Australians opting to order through third-party apps instead of restaurant websites or direct phone calls, according to DoorDash for Merchants.
Around half of third-party food delivery app users admitted to ordering takeout two to four times a month, and a few even 10 times or more, Statista revealed.
Meanwhile droves of younger Australians are abandoning credit cards, according to an Afterpay survey of 4300 people.
Among Australian adults, 84 per cent believe credit cards can be financially dangerous, and 74 per cent of Aussies say credit cards make them feel like they are spending money they don't have.
Credit cards evoke a sense of anxiety or stress for 76 per cent of Gen Z, with many likely to see the idea of having debt making them feel scared.
Buy now, pay later users are "less likely" to own credit cards, which shifts a notable representation in consumer behaviour according to research from Managing Partner at Mandala, Amit Singh.
"The research indicates BNPL is being favoured by households because it enables large expenses to be spread across multiple pay cheque without dipping into savings. This is a different model of household income management to what we have traditionally seen with credit cards," he said in an Afterpay report.
The buy now, pay later industry is facing tougher restrictions after the Australian Securities and Investments Commission (ASIC) proposed modifications to the Credit Act.
