South Africa Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update

Key Insights

Rapid Growth of BNPL Services

• The rising adoption of BNPL is largely driven by consumers seeking more flexible and interest-free payment options to manage their purchases. As digital payments gain traction, BNPL services are becoming integral to South Africa’s financial ecosystem, particularly in online retail and everyday transactions.
• E-commerce growth has significantly accelerated BNPL adoption as more consumers opt for installment-based payments instead of upfront costs. Additionally, the preference for alternative credit solutions is increasing, as BNPL provides a transparent and accessible option compared to traditional credit cards. These factors have encouraged BNPL providers to expand their reach, forming partnerships with merchants across various sectors to capture a larger market share.
• Over the next few years, companies will likely introduce more innovative BNPL models and diversify their offerings to cater to wider consumer needs. As adoption intensifies, regulatory frameworks and responsible lending practices will also play a critical role in shaping the future of BNPL services in South Africa.

Integration of BNPL into Various Sectors

• Expanding BNPL services beyond traditional retail into sectors such as transportation and utilities is reshaping South Africa’s financial landscape. Some BNPL providers are exploring partnerships that allow consumers to finance significant expenses such as vehicle purchases or utility bill payments through installment plans. This shift indicates that BNPL is evolving from a retail-focused model to a broader financial tool that enhances affordability in essential services.
• The driving force behind this trend is the increasing demand for flexible financing solutions in sectors where large upfront costs can be a consumer barrier. By offering BNPL options for essential services, providers are making financial management more accessible, particularly for individuals who may not have access to traditional credit facilities. This trend aligns with the broader push toward digital payments and financial inclusion in South Africa’s evolving economy.
• Over the next few years, integrating BNPL into various sectors is expected to accelerate the transition toward digital payment adoption. As more service providers and industries implement BNPL solutions, consumer spending patterns may shift, leading to greater financial accessibility and economic activity. However, as BNPL expands into more essential sectors, regulatory oversight may increase to ensure responsible lending and mitigate potential consumer financial risks.

Emergence of New BNPL Players and Partnerships

• New BNPL players and strategic partnerships are reshaping South Africa’s alternative credit landscape. The entry of startups such as Float, which secured a $11 million funding facility in March 2024 to expand its card-linked installment platform, highlights the growing investor confidence in BNPL solutions. These new entrants drive innovation and diversify payment options, making BNPL more accessible to a broader consumer base.
• The rapid expansion of BNPL services is fueled by lucrative market opportunities, encouraging financial institutions and fintech firms to introduce tailored BNPL products. Partnerships between BNPL providers and merchants are accelerating adoption by leveraging existing customer bases and distribution networks. These collaborations enable providers to scale quickly while offering merchants an opportunity to boost sales through flexible payment plans.
• Over the next few years, the South African BNPL market is expected to become more competitive, with an increasing number of providers differentiating their services through technological advancements and customer-focused innovations. As BNPL adoption grows, companies will likely refine their credit models and risk assessment mechanisms to ensure sustainable growth. Additionally, regulatory oversight may evolve to protect consumers while maintaining a healthy and competitive BNPL ecosystem.

Competitive Landscape and Regulatory Developments in South Africa's Buy Now, Pay Later (BNPL) Market

Current State of the BNPL Market

• South Africa’s BNPL market is expanding rapidly, fueled by the rise of e-commerce and shifting consumer preferences for flexible payment solutions. As more shoppers seek interest-free installment options, BNPL providers are becoming integral to the country’s digital financial ecosystem. This growth has encouraged established players and new entrants to refine their offerings and strengthen their market positions.
• Key BNPL providers in South Africa, such as Payflex, PayJustNow, Mobicred, and TymeBank, have gained traction by partnering with retailers and financial institutions. Strategic investments and acquisitions, including Zip Co’s acquisition of Payflex and Homechoice’s acquisition of PayJustNow, reflect increasing investor confidence in the sector. As competition intensifies, BNPL providers will likely expand their services beyond traditional retail, integrating into new sectors and offering more personalized financing solutions.

Key Players and New Entrants

• Payflex: Acquired by Australia's Zip Co in September 2021, Payflex offers BNPL services across various retail sectors.
• PayJustNow: Acquired by Homechoice in February 2022, PayJustNow provides interest-free installment payment options to consumers.
• Mobicred: A digital credit facility offering online shoppers the ability to pay off purchases in monthly installments.
• TymeBank: A digital bank that has entered the BNPL space, recently receiving a $150 million investment from Brazil's Nubank, valuing it at $1.5 billion.

Outlook

• Over the next 2-4 years, the competitive intensity in South Africa's BNPL market is expected to escalate. Existing players are likely to expand their service offerings, and new entrants may emerge, attracted by the market's growth potential. Strategic partnerships and technological innovations will be key drivers of differentiation among providers.

Regulatory Changes

• Currently, BNPL models in South Africa fall outside the ambit of the National Credit Act of 2005, designed to protect consumers in the credit market. However, with the rapid growth of BNPL services, there is an expectation that regulatory frameworks will evolve to address potential consumer protection concerns. Specific regulatory changes in Africa have yet to be widely reported, but as the market matures, more defined regulations are anticipated.

Scope

South Africa BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

South Africa Buy Now Pay Later Operational KPIs & Statistics

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

South Africa BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

South Africa BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

South Africa BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

South Africa BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

South Africa Buy Now Pay Later Market Share Analysis by Key Players

South Africa BNPL Analysis by Channel

• Online Channel
• POS Channel

South Africa Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Africa Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Monthly Expense Segments

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in South Africa: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in South Africa. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.