Australian buy-now, pay-later (BNPL) titan Afterpay is facing a class action in the US from users who claim it has deceived them via misrepresentations in its marketing material about fees that can be charged by the banks.

Afterpay tells customers it can charge late fees of up to 25 percent of the purchase price of the product. But lawyers for the class-action plaintiff say no warning is given about banks charging overdraft fees and “insufficient-funds” fees.

Afterpay contends it is not its responsibility to tell customers about the fees charged by another organisation.

Afterpay plans to launch transaction accounts through a partnership with Westpac later this year.

The research found additional services could see BNPL’s core Australian business revenue double by 2025.