Dubbed ‘Send Now, Pay Later’, Aussies can now access what the providers call ‘reliable, ethical and affordable’ short term loans to consumers transferring money to over 200 countries and territories.

The service is a collaboration between Western Union, a global leader in cross border, cross currency money transfers, and Beforepay, who provide small short term loans. Consumers who use Western Unions Services borrow the money through Beforepay’s Pay on Demand wage advance product product.

Australians to send more overseas

Gregory Laurent, Regional Vice President of ANZ and Pacific Islands at Western Union, said the new service was part of Western Union’s overall strategy to “make financial services accessible to people everywhere”, and give more options to Australians looking to send money to families or communities.

In 2022, the ABS reported that for the first time, more than half the Australian population were either first or second generation immigrants. An increasing number of these people also hail from developing countries. In the top ten most common birthplaces for Australian immigrants, the department of home affairs now lists the Philippines, Vietnam, Nepal, Pakistan and Thailand. It follows then that there is an increased demand from new Australian residents to send money back to friends or family. Western Union research found 44% of Australians would like the option of borrowing extra money for their cross border transfers.

Eligibility and rates

‘Send Now Pay Later’ will have the same terms of eligibility as Beforepay's Pay on Demand wage advance product. To be eligible for the loan, applicants must be:

  • Over 18

  • An Australian resident

  • Receive regular income (weekly, fortnightly or monthly)…

  • …that works out to be no less than $300 a week

As far as rates go, there is a flat 5% transaction fee on the amount cashed out, with no interest or late fees. Western Union says the transaction fee will always be the only cost to customers on top of their repayments.

In the market for a personal loan? The table below features unsecured personal loans with some of the lowest interest rates on the market.

Update resultsUpdate
Filters
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Secured Type Early Exit Fee Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkComparePromoted ProductDisclosure
6.56% p.a.
6.56% p.a.
$392
Fixed
Unsecured
–
$594
$0
$23,513
  • Whether its for car, holiday, home renovations or refinancing your debt, kickstart your goals with our fixed -rate loans, with no surprise fees
  • Get a quote with no credit score impact: Getting your personalised quote is credit score safe
  • Access your cash instantly: If approved, get your money in seconds straight into your Revolut account
  • Repay flexibly, with no monthly fees or nasty penalties
 Disclosure
6.57% p.a.
7.19% p.a.
$392
Fixed
Unsecured
$150
$0
$250
$23,519
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
  • Get quick decision. Funds in 24 hrs if approved
  • Loan amounts of up to $75,000, and up to $100,000 for home improvement projects and motor vehicles
 Disclosure
16.95% p.a.
32.99% p.a.
$497
Fixed
Secured
–
$26
$125
$29,791
Interest rates subject to change based on your personal circumstances
  • Interest rates start at 16.95% and could be as high as 29.95% based on your personal circumstances and loan term
  • Australian residents and citizens only
  • Personal Loans from $3,000 to $25,000, with loan terms ranging from 25 - 36 months
  • Terms, Conditions and Lending Criteria apply
 Disclosure
6.49% p.a.
7.61% p.a.
$391
Fixed
Secured
$150
$12
$250
$23,474
6.49% p.a.
7.69% p.a.
$391
Fixed
Secured
$100
$12
$250
$23,474
8.50% p.a.
9.53% p.a.
$410
Fixed
Unsecured
$0
$15
$0
$24,620
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

A bad time to be a fintech app?

Many fintech companies have suffered a difficult last few months. Buy Now Pay Later (BNPL) giant Openpay collapsed earlier this year, while other companies like Zip and Klarna have run into stormy waters.

Former Citi and Diners Club executive Grant Halverson believes rising funding costs and lower consumer spending spelt trouble for fintech apps like Afterpay who offer BNPL services.

“BNPL will be fine, it’s a niche product - fintech apps won’t survive.” Mr Halverson told Savings.com.au.

Beforepay is distinct from BNPL since these loans are not tied to consumer spending, but by the end of last year, their share price had taken an 86% tumble from its initial offering in January, the worst performance of any of the IPO’s listed on the ASX last year.

Beforepay CEO Jamie Twiss said Send Now Pay later catching on could provide “inclusive financial services to aspiring consumers around the world.”

The company are likely also hoping it can be a lifeboat at a time fintech apps are sinking fast.

Picture by Christine Roy on Unsplash



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