The platform also found users were paying 57% more bills in the first half of 2020 compared to the previous non-COVID period.
Deferit allows users to split any bill into four fortnightly payments, doesn't fund discretionary purchases, and has helped Aussies pay off more than 400,000 household bills like telco and energy worth over $70 million to date.
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Jonty Hirsowitz, co-founder and chief executive at Deferit, said current economic conditions had forced households to look for smarter ways to manage bills.
“Australians nationwide are feeling the knock-on effects of the pandemic on the economy and job market and are now under greater financial pressure than the same time last year," Mr Hirsowitz said.
"A lot of families have experienced redundancies or reduced hours for their main income earners and simply don’t have the same cash flow they used to have.
“To help ease this pressure, many are turning to bill payment solutions to help stagger their current cost of living in a way that is convenient and allows them to save with pay on time discounts."
On sign up, the majority (51% nationally) of Deferit's users started off by paying an already overdue bill, with 55% of this number then paying their next bill on time using the service.
|
State |
No. of bills overdue at the time of payment |
No. of people who go on to pay their next bill on time |
|
ACT |
53% |
54% |
|
TAS |
53% |
50% |
|
NSW |
50% |
57% |
|
WA |
53% |
55% |
|
QLD |
45% |
55% |
|
SA |
52% |
59% |
|
VIC |
47% |
58% |
|
NT |
55% |
50% |
Source: Deferit
"We’re seeing Australians become more strategic about the way they manage their bill payments over each pay period, and from doing so, they are actually getting better at paying their bills in the long run," Mr Hirsowitz said.
Upon sign up, the user can upload a bill that Deferit will pay off immediately, which will then be paid back in four equal instalments for a fixed monthly fee of $5.99.
The platform doesn't charge interest on payments, establishment fees, annual fees or late fees, which it said helps users become smarter budgeters and minimises stress.
Deferit found it had saved users $8 million in late fees and over $5 million in pay on time discounts.
Phone and internet bills topped the list for bills paid, with over 76,500 paid nationally this year already.
Car registration came in second with over 68,200 bills paid, followed by energy with over 27,610.
Harry O'Sullivan
Denise Raward
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