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PayJustNow says the emerging buy now, pay later (BNPL) industry needs regulation that protects consumers while allowing the sector to support financial inclusion.The comments come as debate continues about how BNPL should be governed and whether the product should be treated under traditional credit frameworks.PayJustNow co-founder Mark McChlery told Business Day the company has always supported regulation but believes the approach must consider how BNPL differs from traditional credit products.“We’ve never been against regulation. We’ve always wanted and positioned ourselves to be frontrunners in this market, because we wanted to have a seat at the table when this regulation was discussed and planned,” said McChlery.PayJustNow operates under the National Credit Act as incidental credit, which allows oversight but differs from traditional credit agreements.McChlery said the key regulatory question is finding an approach that protects consumers while recognising the role BNPL plays in expanding access to financial services.He said regulation should focus on consumer protection and preventing bad actors while ensuring the market can continue developing.PayJustNow says its model is designed around affordability checks, with consumers required to make an initial payment before accessing the service. The company said users are assessed continuously, with access restricted if payments are missed.The company’s comments come as recent data shows how younger consumers increasingly enter the credit market through digital products rather than traditional credit cards, store accounts or personal loans.Additional research from TransUnion shows BNPL has the youngest consumer profile among consumption credit products, with 37% of BNPL users belonging to Gen Z. The research also finds that 16.5% of BNPL users are new to credit, while 19.7% are underserved consumers with limited credit histories.PayJustNow said this shift highlights the need to reconsider how consumers build credit histories.According to McChlery, many young consumers enter the financial system without enough understanding of how credit works, calling for stronger credit education.He argued that consumers should be introduced to credit concepts earlier, before they begin borrowing.“I would make credit education a sort of mandatory subject, as you pass school and enter into university,” said McChlery.PayJustNow said BNPL can act as an entry point into formal credit for consumers who may not have traditional credit histories. The company said its data shows some consumers who started as “thin file” customers have built stronger credit profiles over time.McChlery said the industry should consider consumer behaviour and affordability when assessing BNPL products, rather than treating them the same as other forms of credit.“If I could change one thing, that would be my personal one,” he said. “I would give them a perfect credit score when they enter the market and ask them to protect it, instead of not giving them a clear score and telling them to build it.”PayJustNow said its BNPL average basket size is about R1,500, with its Pay in 12 product used for larger planned purchases averaging about R2,500.The company said the trend shows younger consumers are using credit differently, with smaller, purchase-linked commitments and clearer repayment structures.
