By Zuko Komisa
Buy now pay later (BNPL), which is increasing by 10 to 15% per month and saw a 50% increase from the first to the second quarter of 2022, is a method of payment used by hundreds of thousands of South Africans.
The largest BNPL supplier in South Africa, Payflex, estimates that by the end of 2022, BNPL payments will likely total about R2 billion. Payflex has approximately 300 000 customers.
Kaya Biz with Gugulethu Mfuphi spoke to the Head of Marketing for Payflex, Kenne Loubser
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Loubser gave a breakdown of what it means to buy now and pay later.
“The obvious one to mention is that it is a non-interest bearing product, it is a short-term spending solution that doesn’t have any fee or interest attached to it over a shorter payment period. “
What that means is that consumers can buy something now and pay for it over certain period, on our products specifically.”
“There are other products out there that are slightly different in the repayment schedule, but the bottom line is that it’s a product where you have a short term to pay the amount off, without any additional interest or fees whatsoever.”
“South Africans have shown an incredible appetite for Payflex and other BNPL offerings. It is simple to understand, transparent and easy to use – and this is reflected in our triple growth metrics each year since 2019.” says Loubser.
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