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  • Writer's pictureDonnelle Brooks

Everything you need to know about MyPayNow: A review

Updated: Jul 26, 2023

I have written on this blog about Payday Loans and Buy Now Pay Later Services as types of alternative credit. In the last 12 months I have noticed a new type of credit becoming increasingly more popular - Pay Advance services. The biggest of which at the moment is My Pay Now. The premise is simple - you get access to your pay early, and pay it back on pay day. The promise is enticing - no more waiting to get paid. But could it this be a case of too good to be true? Let's have a look a the pros and cons of My Pay Now.


What is MyPayNow?

MyPayNow is a service that apparently allows you to access your pay early. It's a pretty appealing prospect, especially if you are short of cash a day or two before payday and don't want to get a loan or use a credit card. However, it is not as simple as getting your money then paying it back when you get your paycheck. There are fees involved and you can only access a percentage of your pay, not the whole thing.

How does MyPayNow work?

MyPayNow works by connecting to your bank account via an app and advancing cash upon request. The money is deducted from your account the day you get paid. You can use the app to get multiple cash advances on your wage, up to 25% of your wage. When your pay hits your account, they will all be paid back.

yellow card in purple purse with a purple background
MyPayNow claims to let you access your pay early, but to be real, it is more like a micro loan or a credit card

Does MyPayNow contact my employer?

No. Although MyPayNow claims to come directly from your paycheck, it in fact debits your account the day you get paid. This is the same method a payday loan uses to set up your repayments. This is beginning to look a lot like a payday loan!

How much can I borrow with MyPayNow?

You can borrow up to 25% of your pay. The minimum earning amount for using MyPayNow is $450/week. This means you can borrow about $120/week. The more you earn, the more you can borrow, up to a maximum of $1250/week.

Who owns MyPayNow?

MyPayNow is a Gold Coast based company. MyPayNow was founded by entrepreneur Bronson Powe, who is also the current managing director. MyPayNow was launched in June 2020, making it just over a year old. Like Afterpay, MyPayNow is an ingenious borrowing platform. My giving consumers new ways to utilise credit MyPayNow is helping to normalise the debt cycle and keep people in debt.

Does MyPayNow work with Centrelink?

MyPayNow does not allow you to cash advance if Centrelink is your only form of income. In order to qualify you need to be earning at least $450/week. If you missed your last pay or your last pay was less than $450, you will not be approved.

MyPayNow eligibility

In order to be eligible for MyPayNow, you need to be over 18, have either an Australian drivers license, passport or medicare card, and be earning $450 per week or more. You can not apply if you are receiving Centrelink only, or if you only have a proof of age card or learner license. To set up an account you need the following:

  • A mobile phone number

  • An email address

  • A valid form of Australian ID (listed above)

  • The date and amount of your last salary

  • Your internet banking details

  • A bank account that your salary goes into

To set up an account you register on the website and they send you a link to download their app. You can install the app directly from the app store however.

Does MyPayNow do a credit check?

MyPayNow does not conduct credit checks. Rather, you will enter your internet banking details and they will use the to fetch your bank statements to assess your loan suitability. This is something that payday loans also do. From your bank account they can see if you are currently defaulting on any loans, and what day you get paid. They will use this information to set up a payment plan.

Does MyPayNow affect credit rating?

As MyPayNow does not conduct a hard credit check, applying for and using the service will not affect your credit rating. However, if you use the service a lot, it can affect your creditworthiness. If you are using this service every week to access your pay early, it will show in your bank statements. Then, when you want to apply for a car loan or a home loan, you will not be seen as a good candidate. So, if you do decide to use this service, use it wisely.

Does MyPayNow work on weekends?

MyPayNow uses NPP payments, meaning if you need to get a cash advance on the weekend you can. However, that is only if you currently have an account. If you are applying for a new account, you may have to wait for working hours.

Is MyPayNow interest free?

Not at all. A lot of Buy Now Pay Later services are interest free, and make their money from merchant fees and late payment fees. MyPayNow is more like a micro loan. That means that you will be charged accordingly. 5% of the loan amount to be exact. So if you apply for $100, you will get charged $5 for the privilege. That might not seem like a lot, but if you do it every week, it's going to add up. If you use the service every week to advance $100, it adds up to $260 in fees. Also, considering the loan is only for a week, that 5% is effectively 260% interest annually.

MyPayNow fees

MyPayNow charges a flat rate of 5% of money borrowed. So for every $100 you borrow, you pay $5. That's not bad considering that payday loans are allowed to charge 48% interest. However, that 48% interest over a year is still less than 1% weekly.

The Bottom Line

MyPayNow is a good option if you find yourself short from time to time. However, using microloans is a bad habit to get into. A much wiser choice would be to start saving small amounts, so you have money set aside for a rainy day. Payday loans and micro loans like MyPayNow should always be a last resort. If you need some ideas on how to start saving, check out this article. Happy saving.

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