Why more South Africans are choosing Buy Now, Pay Later over credit cards

57% of South Africans now use Buy Now, Pay Later, new data reveals.

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%.