Can You Pay A Bill With Afterpay? Everything You Need To Know

Afterpay has become one of the most popular buy now pay later services in Australia. With over 11 million users and 100000 merchant partners, Afterpay offers a convenient way to split purchases into 4 interest-free payments over 6 weeks.

But can you use Afterpay to pay bills like your phone bill, utility bills, or mortgage? Let’s take a look at what bills you can and can’t pay with Afterpay.

What is Afterpay?

Founded in 2014, Afterpay is a buy now, pay later service that allows shoppers to split purchases into 4 interest-free installments paid every 2 weeks. Here’s how it works:

  • Shop online or in-store at retailers that accept Afterpay
  • Choose Afterpay at checkout
  • Pay 25% of the purchase price as the first installment
  • The remaining balance is split into 3 payments due every 2 weeks
  • No interest or additional fees if you pay on time

Afterpay charges retailers a fee for each transaction but it’s free for customers who pay on time. You’ll be charged a late fee of up to $10 if you miss a payment.

Afterpay is designed for online and in-store retail shopping. But can you also use it to pay bills? Let’s find out.

Can You Use Afterpay To Pay Bills?

The short answer is no Afterpay is not designed to pay bills.

According to Afterpay’s website, “Afterpay is intended for use to buy goods and services online and instore. Afterpay cannot be used for gambling, recurring payments, paying bills or invoices.”

So while Afterpay is great for splitting up purchases on clothes, shoes, electronics, and more, you cannot use it to pay expenses like:

  • Utilities (electricity, water, gas)
  • Mobile phone bills
  • Internet and cable bills
  • Rent or mortgage payments
  • Car loans or financing
  • Insurance premiums (health, home, auto)
  • Credit card bills
  • Personal loans or debt payments

The reason is that Afterpay is designed for online and in-store retail shopping. It is not set up to process the types of automatic, recurring payments that bills require.

While you can’t directly pay a bill through Afterpay, there are a couple workaround options:

Buy Bill Payment Gift Cards

Some retailers sell bill payment gift cards that you can purchase with Afterpay. For example, you may be able to buy a phone bill payment gift card that you can then use to pay your mobile bill. However, selection is limited.

Use Afterpay Money or Cash Out

Afterpay offers a digital wallet feature called Afterpay Money. With it, you can transfer Afterpay funds to your bank account.

You could use this option to cash out your Afterpay balance, deposit it into your bank account, and then pay bills normally with your bank funds. But keep in mind cash out usually takes 1-2 business days.

What Types Of Bills Can You Pay With Afterpay?

As we’ve seen, Afterpay is not designed to pay recurring expenses and bills. But in some limited cases, you may be able to use it for one-time or irregular bills by purchasing bill payment gift cards.

Here are a few examples of bills you may be able to pay with Afterpay this way:

  • Mobile phone bills – Some stores like Woolworths sell phone credit gift cards that can be used to top up your mobile plan. You can buy these gift cards with Afterpay.

  • Electricity bills – Retailers like Australia Post and Woolworths sell one-off electricity payment vouchers that can be purchased with Afterpay and used to credit your power bill.

  • Insurance bills – Afterpay can be used to buy some insurance gift cards at stores like Woolworths and Australia Post. These may be applicable for select insurance bills.

  • Rent payments – In some cases, agencies may accept one-off rent payment gift cards purchased via Afterpay. Availability is limited.

  • Fuel costs – Fuel gift cards bought with Afterpay can be used to pay at petrol stations.

Why You Can’t Pay Recurring Bills With Afterpay

There are a few reasons why Afterpay is not designed for automated, recurring bills:

  • Credit limits – Afterpay has relatively low credit limits compared to the amounts of most bills. The maximum limit is $2000 for Afterpay users. Many bills exceed this amount.

  • Frequency – Afterpay payments are every 2 weeks. Many bills are monthly or quarterly, not aligning with the Afterpay payment schedule.

  • Automatic payments – Afterpay requires you to manually make each payment. Bills require automated payments that Afterpay doesn’t support.

  • High fees – Afterpay’s late fees of up to $10 per missed payment can quickly add up when paying essential bills. This contrasts with Afterpay’s fee-free model for on-time retail payments.

  • Credit reporting – Missed Afterpay payments can impact your credit score which most people want to avoid for essential expenses.

Overall, Afterpay simply isn’t designed for automated repetitive bills that often exceed $2000 and require reliable payment. So while great for shopping, it falls short for bills.

When Can You Use Afterpay For Bills?

  • Making a one-time, irregular payment – Such as using a gift card to pay a phone bill just once.

  • Paying a bill that’s less than your Afterpay limit – As long as the bill is under your credit threshold, usually $2000.

  • For smaller, variable bills – Such as mobile top-ups or electricity usage charges that change each month.

  • If you don’t mind late fees – The $10 late fee may be acceptable on a smaller or one-off bill.

  • To pay urgent bills before cashing out Afterpay funds – You can pay immediately then reimburse yourself by cashing out Afterpay.

Butoverall, Afterpay has significant limitations and should not be relied on as a recurring bill payment method.

Pros And Cons Of Using Afterpay For Bills

Let’s summarize the key advantages and disadvantages of attempting to use Afterpay to pay bills:


  • Allows you to pay a bill if you’re short on cash and get funds later.

  • Interest-free installment payments may help manage cash flow.

  • Easy to use at checkout if retailer gift cards are available.

  • Provides quick access to funds in urgent situations when combined with cash out.


  • Afterpay is not designed for bills, only retail shopping.

  • Low payment limits compared to most bills.

  • Late fees quickly add up if you miss bill payments.

  • Can impact your credit score if you miss payments.

  • Limited bill payment options – only some gift cards available.

-Still need another payment method – Afterpay is just an intermediary.

The Risks Of Using Afterpay And BNPL For Bills

While services like Afterpay offer more flexible spending, using buy now, pay later to purchase essentials like food or pay bills can be risky. Here are some of the dangers to be aware of:

  • Debt cycles – It becomes easy to continually pay bills with credit creating a debt trap.

  • High fees – Late fees on bills may be harder to budget for than retail purchases.

  • Credit damage – Missed bill payments can hurt your credit rating.

  • Limited options – Not many bills can actually be paid directly with Afterpay.

  • Budget distortion – BNPL makes it harder to track exactly what you owe each month.

  • Overspending – It masks your true financial situation allowing overspending on non-essentials.

While convenient, using buy now, pay later to purchase routine necessities rather than just discretionary retail items can lead to a dangerous debt cycle.

Afterpay Alternatives For Paying Bills

If you are looking for more budget-friendly alternatives to pay bills, consider these options:

  • Debit card – Pay bills directly from your own funds. Avoid credit.

  • BPay – Setup scheduled automated deductions from your bank account.

  • Money app – Transfer funds to billers using an app like Beem It or PayID.

  • Credit card – Use a low-interest card and pay off monthly. Rewards can help.

  • Personal loan – Consolidate bills into a fixed term installment loan.

  • Hardship assistance – Ask for extended payment plans from utility companies.

  • Payment plan – Request billers to spread costs over time, fee-free.

While less instant, these options help build long-term financial security when paying recurring expenses.

Top Tips For Managing Bills Without Afterpay

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Can you pay off bills with Afterpay?

Whether you’re able to make bill payments using Afterpay depends on the type of bill you’re paying and how you make the payment. If you want to pay bills in person you’ll need to download the Afterpay app so you can access an Afterpay card, which is designed to be used similarly to a credit card.

What app allows you to pay bills in installments?

Willow breaks your monthly bills into 4 smaller payments so you can breathe easy about your budget!

Can I withdraw money from Afterpay?

If you’re with Afterpay, it means you can set up a new savings account and pay your bills, withdraw cash, and budget.

Can I use Afterpay to pay anything?

The Afterpay Plus Card can be used anywhere where Apple or Google Pay are accepted, whereby the Afterpay Card can only be used at merchants where Afterpay is accepted. Just like with the Plus Card, purchases made with the Afterpay Card are paid in four installments over 6 weeks.

How do Afterpay payments work?

When you make purchases with Afterpay, your payments are split into four installments. You make an initial down payment against the purchase, then you have a six-week period to make your remaining payments. Afterpay doesn’t specify a minimum required purchase amount.

How do I pay a bill with Afterpay?

It depends on the bill and how you make your payment. To pay a bill in person, you’ll need to download the Afterpay app. This gives you access to the Afterpay Card, which allows you to spend funds just as if you were using a credit card. You can also load the Afterpay Card into your Apple Pay or Google Wallet.

Can I use the Afterpay card with Apple Pay or Google Pay?

If eligible, you can use the Afterpay Card with Apple Pay or Google Pay to make a contactless payment at checkout. At any time, you can log in to your Afterpay account to see your payment schedule and make a payment before the due date. Otherwise, we’ll automatically process payments on the due dates, as outlined on your payment schedule.

Can I pay Afterpay with a credit card?

For U.S. shoppers, the card must be issued within the U.S. International cards are not accepted. Paying Afterpay with a credit card can be a risky strategy because you’re putting a no-interest charge on a high-interest credit card. This is rarely a good choice. In addition, you may lose out on any points or rewards that come with your credit card.

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