Uber and Uber Eats team up with buy now, pay later service Afterpay

Uber and Uber Eats are teaming up with Afterpay as customers move away from traditional forms of credit.

The buy now, pay later service - available to Uber and Uber Eats customers in Australia and New Zealand - can be added to a customer's wallet for takeaway purchases and rideshare trips.

Afterpay CEO Nick Molnar said it would give Uber customers more control over their finances.

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"Bringing Uber on board is a perfect representation of Australians continuing to call for Afterpay as a preferred partner in their lives," Molnar said.

"Afterpay is, and always has been, about providing customers safe and flexible ways to pay in their everyday lives and Uber plays a crucial role in the lives of millions of Australians.

"We're giving customers greater control over how and when they pay via a seamless addition to Uber Wallet."

A recent report found younger Australians are turning away from credit cards, with many considering them to be financially dangerous.

Financial stress is the main driving factor for Gen Zs born between 1996 and 2005 shunning the payment method.

The buy now, pay later industry is facing tougher regulations this year after the Australian Securities and Investments Commission (ASIC) proposed modifications to the Credit Act.

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