In the lead-up to Election 2023 in October, we’re posting a series of blogs written by our members, tied together with threads of hope and optimism for how Aotearoa might change in the near future. We want to highlight what our members are seeing out there in their communities, and also suggest innovative solutions for positive systemic and individual change.

In this blog Fraser Kearse (The Salvation Army) writes about the strong grip of post pay purchase apps that many whānau in Aotearoa are currently having to rely on to make ends meet. He looks toward a near future when using these payment methods is an empowered choice rather than an absolute necessity, for everyone in our communities.

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“A vote for me is a vote for change, Our Party promises to…, If we are elected to govern you can expect…”                                                            

These are just a few of the election year taglines that we’ll inevitably encounter as the countdown to Election Day draws closer.

In the face of this, many NZ whānau are facing a significant cost-of-living crisis leading to the increasing use of debt-inducing post pay apps such Afterpay, Laybuy and Zip, for the basic necessities of life.

It could even be suggested that Work & Income NZ has been complicit in creating a culture of post payment dependence through the provision of various grants that create a debt against the individual.

The increasing poverty line in Aotearoa New Zealand should be a major concern to communities, government, and parliament alike. The results are numerous: difficulty for whānau to obtain the essentials of living, worsening mental health, inability to access health services which negatively impacts physical health. It can also lead to a cycle of entrenched intergenerational poverty which is very difficult to break out of.

A concern for Aotearoa is the growing number of whānau living in poverty having to resort to post pay payments.

Once the favoured purchase method of the financially independent, there appear to be more people now caught in a cycle of post pay use as the rising poverty line ensnares those on benefits, minimum wage and low incomes. While post pay services can be convenient and an effective way to manage finances, there are some clear concerns that arise from the misuse of them such as: overspending, late fees, penalties, and debt accumulation.

As we near the Election and discover what our Government looks like in October, I hope that all political parties will give deep consideration to how they can truly assist people to have hope- not just survival – but hope of a prosperous future where the financial position of whānau is flourishing, leading to better outcomes for each generation.

There’s no easy answer to this issue. It will require a mixed approach, including the lifting of base benefit rates and minimum wage, as well as encouraging the living wage as a baseline for employers. There may need to be further targeted relief packages for those affected. Clearer, tighter regulation of post pay providers should be a key feature as well as the retailers that allow their use. The provision of support to enable whānau to access to essential services, job training and upskilling, will help people flourish.

Everyone living in Aotearoa New Zealand should be able to afford to live well, without material hardship that results in the need to use debt-inducing apps and practices. This country should and could be one where all are able to obtain what they need without having to enter into debt.

As we consider who we’ll cast our vote for in this election, my hope is that everyone will fully engage with each political party to truly understand what they will do to work together with community in alleviating the financial pressures that people are facing, thereby avoiding the use of post pay and other debt ensnaring products.

Kia kaha Aotearoa New Zealand!