57% of South Africans now use Buy Now, Pay Later, new data reveals.
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Buy Now Pay Later (BNPL) products are becoming increasingly common in South Africa as consumers look for more structured ways to manage spending and cash flow, according to new data and industry figures.
Data from TransUnion shows that 57% of South Africans now hold a BNPL product, with 36% using it multiple times in the past year. At the same time, 35% say they are paying down debt faster, suggesting a shift toward more intentional financial behaviour.
BNPL allows consumers to access short-term liquidity with fixed repayment terms, distinguishing it from traditional revolving credit products.
“Digital payments are no longer just about speed or convenience,” said Dean Hyde, chief operating officer at payments platform PayJustNow. “What we are seeing is a shift in how consumers manage their money. BNPL gives people a way to align spending with income, without taking on open-ended debt. That creates a level of control that many consumers have not had before.”
PayJustNow said most of its transactions, 84%, are funded through debit cards rather than credit cards, indicating that many users are opting for structured instalment payments even when they have access to traditional credit. The company also reported a repeat usage rate of about 80%.
The company said spending limits are introduced conservatively and increase as customers demonstrate consistent repayment behaviour. It reported a default rate of less than 2%.
“We have built our model around responsible access. Every transaction is assessed in real time using data and risk signals. The objective is not to encourage more spending, but to enable better financial decisions and sustainable participation in the economy.”
According to the company, average basket sizes are around R1 500, with increased usage in categories such as electronics, home-related purchases and medical expenses.
PayJustNow also said more than 130 000 new customers signed up in March, reflecting continued demand for flexible short-term payment options outside traditional credit structures.
“As digital payments continue to evolve, BNPL is becoming less about access to credit and more about access to control. For a growing number of South African consumers, that distinction is starting to matter,” Hyde said.