The Hidden Cost of Buy Now Pay Later in South Africa

That R2000 jacket costs R0 today so it is free right? Not quite.

How BNPL Works

Buy Now Pay Later splits purchases into 4 payments over 6 weeks. The merchant pays a fee. You pay nothing extra if you stick to the schedule.

The Catch: Late Fees

Miss a payment and fees kick in. Flat fees, percentage charges, compounding penalties. What starts as interest-free becomes expensive debt.

Credit Score Risk

BNPL claims no hard credit check. But missed payments absolutely get reported to credit bureaus. A few missed payments can tank your score.

South Africa BNPL Players

• PayFlex: Partners with Takealot
• PayJustNow: In-store focus
• ZeroPay: Airtime-based for unbanked

When to Use (And When to Avoid)

Use when: You have the money but want cash flow flexibility. Planned purchases only.

Avoid when: Making impulse buys. Juggling multiple payments. Unsure you can pay.

The Bottom Line

BNPL is a debt obligation disguised as convenience. The R0 price tag is a psychological trick. Make sure you can pay the real cost over the next 6 weeks.