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Flybuys is picking up new members and seeing them redeem points for the first time.
The rewards program has been attracting new customers: Coles reported a 5.3 per cent growth in active members in the 2024 financial year. Chief executive Leah Weckert has previously spoken about a growing proportion of members who are saving up points to use for a major shop for Christmas or end-of-year festivities.
“Most savvy shoppers get into the app and they see all the offers that are available to them, and they plan their shops around where they’re going to get the most value from that shop that helps bank those points for something that’s really important to them,” added Boyle.
But despite the increase in engagement with these platforms as budgeting tools, financial counsellors and the National Debt Helpline are hearing more cases of people presenting with buy now, pay later-related debt and are calling for tighter regulation in the space.
“More and more people are using it as emergency relief, for essentials like food and petrol and other essential expenses,” said Financial Counselling Australia counsellor and consumer advocate Deb Shroot.
“If someone can’t pay for those essentials today, how are they going to pay for those essentials in two weeks? Plus on top of that, the repayment of the previous amounts that they did borrow for the essentials before?”
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Assistant Treasurer Stephen Jones tabled legislation to parliament earlier this year that would require buy now, pay later companies to conduct basic credit checks on customers by bringing the operators under the Credit Act, but the draft laws have seen little movement since it was introduced. Jones’ office was contacted for comment.
“Because it’s unregulated, people can take out more than one [buy now, pay later] product,” said Shroot, who said this practice was leading some into a “debt spiral”. In some instances, financial counsellors are hearing of people going without medication or skipping specialist appointments.
“You’re borrowing money to pay for money, and then eventually you can’t,” she said. “It’s incredibly dangerous. More people [are] becoming more desperate to having their essentials needs met.”