Liquor store does U-turn on letting customers use Afterpay
An Auckland liquor store which sparked community outrage for offering Afterpay says it will no longer let customers buy alcohol using buy now, pay later service.
Ketankumar Satpute, who owns the Bottle-O Panmure store, said he had been subjected to online vitriol after posting about Afterpay on his Facebook site, despite other liquor shops already accepting Afterpay.
Afterpay defended its expansion into financing liquor sales, but the move did not impress Commerce and Consumer Affairs Minister David Clark, who said it did nothing to build social licence for buy now, pay later (BNPL).
Last night Bottle-O Panmure said in a Facebook post that it was reviewing its policies and, until further notice, Afterpay would not be accepted.
Clark is deciding on whether buy now, pay later loans should be brought under the laws governing other forms of lending, including responsible lending rules.
Natalie Vincent, chief executive of the Ngā Tā ngata Microfinance scheme, which helps people escape from unaffordable debt, was horrified Afterpay was expanding into funding liquor sales.
‘‘Bottle-O Panmure is flanked by pawnbrokers on either side with a highcost lender and another pawnbroker just down the street,’’ she said.
‘‘I think this gives a picture of the economic conditions for many people in this community and that is, marginalised, in hardship, financially excluded and targets for predatory high-cost lenders and now Afterpay, to buy alcohol.’’
After posting about Afterpay, Bottle-O Panmure was subjected to a flood of angry posts as word spread.
Marlon Marly McLean posted: ‘‘Get drunk, get hangover, and you’re ‘literally’ paying for it weeks later!’’
‘‘Everyone is targetting me because I just started now,’’ Satpute said.
A spokesperson for Afterpay said BottleO Panmure was one of its first alcohol retailers.
Other alcohol retailers listed on the Afterpay website include Thirsty Liquor Tauranga, Premium Liquor, Merchants Liquor Queenstown, and Containerdoor.
The spokesperson said people had been buying alcohol using credit cards, which can incur interest of more than 20%, for decades.
‘‘Afterpay has stronger consumer safeguards than credit cards, which in turn generate positive consumer outcomes,’’ the spokesperson said.