How new-age lay-bys could tempt you to spend more

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You might have noticed some new logos appearing at checkouts recently both online and in stores - logos for "buy now, pay later" services such as Afterpay, Openpay and zipMoney.

You might be one of the increasing number of consumers who have used one of these services.

As the name suggests, buy now, pay later is all about spreading the cost of a purchase over time.

afterpay zippay after pay zip pay buy now pay later layby shopping online in store shop retail instalments credit card

Afterpay is probably the biggest of the services and claims to account for 5% of online retail sales and 20% of online fashion purchases.

It enables you to split the cost of your item into four equal instalments to be repaid fortnightly over eight weeks.

Use of buy now, pay later services is certainly increasing - according to RFi Group's research, 16% of Australian consumers have now used one of these services.

If you are thinking of giving buy now, pay later a go, make sure you do your homework to fully understand what your obligations are.

The best place to head is the provider's website, where you will be able to find all the information you need.

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Alex Boorman is research director of RFi Group.