Target Market Determination

• Are employed; and
• Are between 18 and 79 years of age; and
• Hold an Australian bank account; and
• Have a permanent residential address in Australia.

These persons may also have one or more of the following characteristics:

• May receive part of their income via payments under the Social Security Act; or
• May be regular users of alternative financial products to supplement their income (such as Small Amount Credit Contracts or Buy Now Pay Later).

Target Market’s Likely needs and objectives

Pay Advance is designed for persons who:

• Have a short-term credit need to pay for general expenses and don’t want to wait until their next pay cycle;
• Need to access a portion of their pay in advance of their next pay cycle;
• Want access to the funds quickly and on demand;
• Need to access between $50 – $2000;
• Must repay their borrowings within 62 days.

Target Market’s financial situation

The Pay Advance is designed for persons who:

• Are employed;
• Earn a net weekly income of $200 or more;
• May within the last 90 days have missed repayments, credit defaults of paid default fees;
• May within the last 90 days have overdrawn their bank account.

• Loan amount between $50 – $2000;
• A 5% flat fee;
• A flat interest rate of 24%
• No monthly fees;
• No late fees or default fees;
• No credit file check;
• Loan does not require collateral (it is unsecured credit);
• Repayment is debited automatically from the customer’s bank account on their next payday.
• Note: consumers can elect to have this repayment taken over their next two paydays.
• Pay Advance is designed for persons who have a regular employment income. We may consider other forms of income in additional to those from regular employment.
• All loans are subject to the lender’s eligibility criteria and suitability assessment.

Conditions

• Pay Advance product is designed to be distributed to persons in its target market through online applications developed by LAZER SERVICES PTY LTD ACN 628 622 275 Credit Representative Number 580404 trading as NextPayday (ABN: 25 628 622 275).
• The advertising, marketing and promotion of Pay Advance will be conducted by LAZER SERVICES PTY LTD ACN 628 622 275 Credit Representative Number 580404 trading as NextPayday (ABN: 25 628 622 275)
• Customers must pass our ID verification process.

How these conditions create alignment to the target market

These distribution conditions are essential to ensure that:

• Controls such as eligibility and suitability criteria are applied;
• Controls such as examining the financial situation;
• Reporting and monitoring data can be collected efficiently; and
• Advertising content and placement is consistent with the target market and does not inadvertently target consumers outside of the target market.

• Significant increase (as referenced by an increase beyond normal historical patterns) in the number of complaints, indicating that the product didn’t meet the customer’s needs, objectives or financial situation;
• Significant increase (as referenced by an increase beyond normal historical patterns) in the number of hardship applications;
• Significant increase (as referenced by an increase beyond normal historical patterns) in the number of missed repayments;
• Significant dealings outside target market; and
• Material changes to the laws applicable to this product, the product features or terms or the distribution method.

• A maximum of 12 months from the previous review date.

Product Complaints

• All complaints relating to the product, including complaints resolved at first contact, are recorded as they are received. Complaints data (including number, nature and outcome) are reviewed monthly and then quarterly to identify whether a review trigger has occurred.

Significant Dealings

• Immediately following the identification of a potentially significant dealing.

• Complaint information (product and conduct complaints);
• Potentially significant dealings; and
• All indicia required to monitor the TMD Review Triggers.