Flexible “buy now, pay later” (BNPL) plans are reshaping how South Africans shop, promising quick approval and the freedom to split purchases into smaller, interest-free instalments. With just a small down payment, often as little as 25%, customers walk away with goods immediately while the BNPL provider pays the retailer up front. The rest is paid off by the buyer over several weeks, creating an appealing illusion of affordability.

A low barrier to entry is part of the draw. Most BNPL platforms only require a soft credit check, making them accessible to many who would otherwise struggle to qualify for credit cards. Yet this very ease means on-time payments are rarely reported to credit bureaus, providing little chance to build a positive credit history. In contrast, missing a payment can spark fees, trigger collection agencies, and quickly damage a credit score.

Recent surveys reveal that regular BNPL users tend to have incomes between R375 000 and R950 000 per year and below-average credit ratings. For young shoppers, the risk is higher. Easy access, fewer dispute protections, and the psychological push to spend more can result in mounting debts that quickly spiral.

As financial regulators explore stricter oversight, consumer advocates warn that the promise of “interest-free” purchases masks significant hazards. Experts urge parents to teach teens responsible payment habits before said teens discover these platforms. While BNPL can offer short-term flexibility, the long-term costs, hidden fees, debt cycles, and impaired credit should not be ignored.