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Hair & Beauty Australia Industry Association


Posted August 19, 2019

By now, most of us have heard of Afterpay, ZipPay or similar services. Some of us might even be slightly addicted to being able to shop whenever we want and pay it off in easy-to-access installments. No judgement here. But what all salon owners should be considering, no matter the size or scale of your business is how this can be applied to the services you provide – because this is becoming the Eftpos; it’s a huge shift for the way our customers spend on their favourite things.



No matter the delayed payment scheme you decide to use in your salon, whether that’s Afterpay, Zippay or more sophisticated systems like HABA Alliance Partner Salon Pay, your clients are going to be inclined to spend a bit extra when they visit your salon. Being able to spread the cost of their appointment over 6 weeks helps with sticker shock and helps make the cost of services and upsell products or treatments more accessible to your customers. It’s no longer a decision between their hair colour and groceries for the week, it’s just a little payment they need to make each week. It’s a great idea to encourage your staff to sell this service, encouraging them to look good or feel better now, and pay later.



From your client’s perspective, working with a delayed payment system means that everything they have to pay off shows up in one place. Most systems encourage you to make your payments in 4 instalments over a 6-8 week period, but this can vary from system to system – ZipPay, for instance, allows clients to pay off their service in whatever instalments they like, from fortnightly to yearly.


Regular payments offered by systems like Afterpay helps with getting clients to spend more in salon, but it also means you’re more likely to see them more regularly – some salon owners have even reported a doubling in their revenue after offering a delayed payment service between increased business from existing clients and attracting new business. For salon owners it’s a win-win – you receive the money for your service in a lump sum (not in instalments) less the fees you pay, so your cash flow won’t be affected. By offering a modern payment strategy that is common usage for customers, you encourage them to spend on their terms.



It’s time for the nitty-gritty. Afterpay is one of the more expensive options, but also the market leader, meaning most people are familiar with it or already have an account. Merchants are charged 30 cents plus commission (which ranges from 4-6%) for every transaction made through AfterPay. AfterPay integrates into some of the major salon systems, like SalonPay, as well as into website platforms like WordPress or Magento. This means that customers shopping online can also utilise AfterPay, which can encourage better online product sales if that is something you’re offering.


On a $250 hair service, this could cost you $12-$17 for the transaction.

Zippay is another large player but is cheaper for merchants – it’s only 15cents per transaction plus commission ranging from 2-4%.

If you have your margins on products and services set correctly, these fees shouldn’t be an issue – but it’s important to make sure that you’re covering that expense by really focussing on the upsell for AfterPay customers.


Whichever system you choose to offer a delayed payment service to your client, the most important thing is to be offering this service, if your business can support it. It is definitely becoming a key player in payments for clients and being able to encourage them towards greater spend in salon is absolutely in your businesses best interest, while offering greater convenience and better options for your clients. Check the business case and make the right decision on a provider for your salon, but don’t delay in getting on board with the latest business payment technologies in your salon.


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