This section debunks some common misconceptions about deferit. If commenting on deferit to the public or to consumers, we ask that you read the below facts to make sure consumers are presented with accurate information.
All information provided here is supported by objective evidence, statistics and data collated from our platform. For further enquiries on any of these topics, please contact.
Deferit assesses all customer bills. When we see any indicator that a customer is in hardship, we deny the bill deferral and refer them to get in contact with their bill provider to seek solutions. Deferit encourages customers to interact with their billers, even when they may not be aware such an avenue exists. We have a strict responsible budgeting code of conduct.
Traditional finance solutions (such as credit cards and personal loans) do obfuscate hardship from billers as the debt can revolve whilst the card has an owing balance and accrues interest.
Billers have full visibility over their accounts just like they do with any other payment method. Furthermore, Deferit does not allow anyone behind on payments to upload further bills. Therefore the service cannot be used to “kick the can down the road” as the four fortnightly payments are due on a 14 day cycle.
Deferit promotes responsible payment behaviour. 54% of customers that join the platform with an overdue bill go on to pay their next bill on time. We can categorically attribute Deferit to preventing multiple cohorts of customers from falling into a hardship pathway.
There are many bills beyond the commonly considered utility bill. Think car registrations, childcare, and healthcare bills to name a few. These are some of the most popular bills on the platform. Most of these bills offer no payment flexibility, which is a holistic household problem. What's more, many of these billers are also small businesses - Deferit helps both sides of the coin and ensures these businesses also get paid on time.
For electricity providers and other utility providers that offer payment plans. Whilst some offer the flexibility to consumers, moving payment dates may void pay on time discounts under the T&Cs of these plans. Furthermore, the mechanism to contact these providers is time consuming and usually results with lots of time spent on the phone. If you're a busy mum trying to juggle the kids among everything else, this isn't a great solution. This is the reason why many Australians are late on their bills in the first place.
Deferit makes this process simple and easy. It's all online and it's in one place for any bill you may have.
The bill smoothing concept for electricity estimates the usage over the past 12 month period and requires the customer to make forward payments on this estimate. These are forward-looking estimates which often result in a true-up to the actual cost at a later point in time. Deferit is backward-looking, allowing the customer to pay the bill based on its actual usage and know the full final cost up front. We've heard from customers that have used smoothing solutions that they've had a negative experience when the true-up occurs between actual usage and estimated usage, often resulting in them needing to pay an unexpected difference that they haven’t budgeted for.
What’s more, customers on these programs still aren't able to easily move payments in a given month if a life event happens and therefore they have no solution to smooth those payments between their fortnightly pay cycles at times when they need it most.
Deferit does not create debt for the consumer - we only deal with bills that are non-discretionary in nature. The customer owes their biller the funds with or without us. If a consumer has a bill (such as an energy or water bill), it is a pre-existing obligation which needs to get paid. Deferit doesn't create any new debt for consumers. As such, we are not a BNPL provider as consumers are unable to buy anything on our platform or create new debts.
If a customer misses one payment to Deferit, the platform prevents any further bills from being uploaded until this is rectified. Our service cannot be used to “kick the can down the road” as the four fortnightly payments are due on a 14 day cycle.
Traditional finance providers are under no obligation to assess the suitability of the transactions the customer is entering into today, even when currently paying off balances on high interest. These products only assess suitability at the time of application (which can be years before) and not when entering into the transaction.
We assess the suitability of our users in relation to each specific bill they defer. We're on a mission to stop consumers falling into debt traps, paying interest, annual fees and late fees on such traditional products.
We're changing the way customers pay and budget their bills over time. We incentivise our customers with positive reinforcement rather than late fees. If someone doesn't make a payment on time, they are unable to upload their next bill. This ensures that all our customers, when uploading a bill at any given time, are up to date with all their payments on their bills on the platform.
We've saved customers over $8m from late fees and lost discounts to date and have paid over $80m in bills since our founding. Customers are feeling less stressed and falling less in hardship using our product. This is not opinion, it is clear data. We are reinforcing a positive budgeting behaviour and saving our customers money in the process. That doesn't sound like a short term fix. It is a long term solution to a problem which hasn't been solved before.
We have just under 200,000 Australians signed up to our platform and that number is growing daily. We also have thousands of stellar reviews on Google, Facebook and the app stores (iOS and Google). In the last 2 years this hasn't slowed down and is only growing faster.