What is a payment gateway? A plain-English guide for South African businesses
September 25, 2026Disclaimer:
This blog offers general guidance based on information available at the time of publication. For the most up-to-date details, please contact Netcash or other service providers directly.
Buy Now, Pay Later (BNPL) is becoming an essential payment option for South African shoppers and retailers. By letting customers split a purchase into instalments, BNPL makes higher-value products more accessible while reducing upfront-payment friction.
For merchants, BNPL can boost sales by reducing cart abandonment and increasing average order value. However, the right Buy Now, Pay Later provider for your business will depend on its fees, settlement terms, limits, and customer eligibility requirements.
This guide compares four of the leading BNPL payment providers available in South Africa: Payflex, PayJustNow, MoreTyme, and Float. It also explains the benefits of BNPL and what businesses should consider before offering it as a payment option.
What is Buy Now, Pay Later in South Africa and how does it work?
Buy Now, Pay Later lets customers buy goods immediately and spread the total cost over a set number of instalments. These purchases are typically interest-free, depending on the provider’s stipulations. The customer may pay an initial amount at checkout and the balance over the following weeks or months, in accordance with the BNPL provider’s terms and conditions.
As a merchant, the process is relatively straightforward. The customer selects a local BNPL provider as a payment method, completes the eligibility or approval process and places the order. From there, you receive payment according to the settlement terms agreed with the provider, while the BNPL provider handles the customer’s instalments.
Why is the use of Buy Now, Pay Later apps growing in SA?
BNPL is becoming increasingly popular in South Africa as shoppers seek more flexible payment options, particularly for larger purchases. But local retailers have historically offered instalment payments, such as traditional lay-bys, making BNPL a natural evolution of the payment mix.
BNPL purchases can be interest-free, depending on the provider, appealing to cash-strapped shoppers who cannot afford to make large upfront payments. Often used for online payments, BNPL is a strong option for reaching younger demographics and tech-savvy shoppers.
For merchants, BNPL providers generally pay retailers upfront, subject to their terms, thereby easing the financial risk associated with customers’ unpaid instalments. Buy Now, Pay Later, therefore, increases conversions and encourages larger cart sizes while carrying limited risk.
Payflex vs PayJustNow vs MoreTyme vs Float: Comparison Table
The four providers take slightly different approaches to BNPL. The table below shows a basic comparison of providers; confirm commercial terms directly with each provider.
|
Feature |
Payflex |
PayJustNow |
MoreTyme |
Float |
|
Payment model |
Pay once-off or pay in 2, 3, or 4 instalments |
Pay in 3 instalments or pay in 12 months |
Pay in 3 equal instalments |
Pay in instalments with Visa or Mastercard credit card (up to 24 months) |
|
Customer cost when paid on time |
Interest-free |
Pay in 3 = interest free
Pay in 12 months = fair interest rate |
Interest-free |
Interest-free |
|
Customer payment |
First payment is made upfront |
Pay 1/3 upfront |
Pay 1/3 immediately at the till or online checkout |
Up to 24 monthly instalments |
|
Merchant settlement |
Paid upfront in full (minus a commission) |
Paid upfront and in full |
Paid upfront and in full for the transaction |
Settled either in full or in instalments (merchant may choose) |
|
Transaction limits |
Subject to Payflex/customer approval and merchant terms |
Subject to customer eligibility and provider terms |
Based on customer’s MoreTyme limit |
Subject to the customer’s available credit card limit and any merchant-specific limits |
|
Customer eligibility |
Provider approval required |
Provider approval required |
GoTyme eligibility, credit checks, and a verified TymeBank account |
Existing eligible Visa or Mastercard credit card |
|
Online integration |
Plugins and API options |
Plugins and API options |
Available through participating payment platforms/merchants |
Plugins and omnichannel integration |
*For Netcash merchants, Payflex is available as an integrated BNPL payment.
See how Netcash can support your payment mi
BNPL fees, limits, and settlements
The headline payment plan is only one part of the merchant decision. Before adding BNPL to your checkout, understand how each provider’s model affects your profit margins and cash flow.
Merchant fees and transaction costs
BNPL isn’t necessarily free for merchants, even if customers pay no interest or fees when they pay on time. Providers can charge merchants transaction or service fees for facilitating BNPL purchases. Merchant fees can significantly affect eCommerce profit margins, so assess the cost against the potential increase in sales or basket size.
Rather than choosing a provider based solely on the lowest advertised percentage, calculate the total cost of offering BNPL against your average order value and gross margin.
Settlement times and cash flow
Settlement is an important factor to consider. Some BNPL models let merchants receive the purchase amount upfront, either in full or on an agreed settlement schedule, while the provider collects instalments from the customer. This can give you greater cash flow certainty for operations and stock purchases.
Before signing up, confirm exactly when funds will reach your account, what deductions apply, and how refunds affect settlement.
Order values and transaction limits
Transaction limits can determine whether a BNPL option works for your product range.
If your average order is relatively low, a provider’s minimum purchase requirement may make BNPL less useful. Conversely, if you sell expensive products, a low maximum transaction value could prevent customers from using BNPL for your most valuable products.
Always check the current limits for your merchant account and product category.
Customer eligibility and approval
Customers aren’t automatically eligible or approved simply because a merchant offers BNPL.
Providers use their own eligibility and risk-assessment processes. MoreTyme assesses eligibility based on factors such as credit behaviour and how customers use their GoTyme Bank account. It also monitors customers’ use of the service and requires a verified TymeBank account. Float’s model is different. It uses an eligible existing Visa or Mastercard credit card and does not require another application or credit check at checkout.
This means the customer experience can differ significantly between providers. Make sure your checkout messaging clearly explains that BNPL is subject to the provider's approval and terms.
How BNPL affects average order value
One of the biggest reasons merchants consider BNPL is its potential to encourage larger purchases. When customers see a R3,000 purchase as a series of smaller payments rather than a single upfront expense, it may feel more manageable. This can reduce hesitation around higher-priced products and potentially encourage customers to add more products to their cart.
As such, larger cart sizes are one potential benefit of BNPL, which can improve average order values. However, test payment-method placement and messaging to understand and measure the true effect of Buy Now, Pay Later on AOV and conversion for your business.
Track your own results by measuring:
- Average order value
- Conversion rate
- BNPL adoption
- Checkout abandonment
- Gross margin after BNPL fees
- Customer feedback and repeat purchases
For example, you could test whether highlighting BNPL on product pages or for orders above a certain value changes basket size or checkout completion. Use controlled testing and track AOV, conversion rates, and payment-method adoption when changing your checkout.
Which businesses benefit from BNPL in South Africa?
Buy Now, Pay Later can be particularly useful where payment flexibility addresses a genuine customer’s barrier to purchase. That doesn’t mean every online store needs to offer it.
- High-value eCommerce stores: Furniture, electronics, appliances, and other higher-priced products can benefit when customers want to spread the cost.
- Fashion and lifestyle retailers: Flexible payment options can make premium products feel more accessible.
- Stores with higher average order values: If your typical customer spends several thousand rand per order, instalments may have a greater impact than they would for low-value purchases.
- Growing online stores: Adding another relevant payment option can help businesses respond to changing customer preferences and reduce checkout friction.
BNPL may be less attractive if your profit margins are already tight, your average order value is very low, or your customers have little demand for instalment payments. The key here is to compare the BNPL provider’s fees and costs with the value it could create for your business.
Whether you’re reviewing or upgrading your payment processes,
reach out to Netcash for flexible solutions that grow with your business.
How to choose a BNPL provider for your online store
No single BNPL provider fits every online store. Focus on your requirements.
- Customer demand: Do your customers actually want to pay in instalments?
- Average order value: Does your typical basket justify offering BNPL?
- Merchant fees: What will each transaction cost after all applicable fees?
- Transaction limits: Can customers use BNPL across your relevant products?
- Settlement: Does the provider’s settlement cycle work with your cash flow needs?
- Integration requirements: Does it work with your eCommerce platform and existing payment setup?
- Checkout experience: Can customers understand and select the option without adding friction?
- Reporting and reconciliation: Can your team easily identify BNPL transactions, refunds and settlements?
Consider your payment aggregator’s BNPL options
You don’t need to integrate with every BNPL provider separately. If you’re already using a payment gateway, or are choosing one for your store, check which BNPL options it supports.
A payment aggregator model can give merchants access to multiple payment methods through a single provider. This can simplify integration and onboarding while giving you more flexibility to offer payment options that suit your customer base.
For example, Netcash provides access to Payflex through its payment services, so merchants can accept BNPL alongside their broader payment-method mix. This can be particularly useful when no single BNPL provider offers every payment option your customers may want.
When comparing payment providers, look beyond the payment methods themselves. Consider the BNPL options available, their merchant fees, settlement arrangements, integration support and how easily you can manage the different payment methods from your existing setup.
How to add BNPL to your online checkout
Approach adding BNPL as a payment-integration project, not simply switching on another button at checkout. Here’s a simple method to follow for BNPL integration:
- Assess whether BNPL suits your business and customers. Review your average order value, customer demographics, and existing payment preferences.
- Compare providers and commercial terms. Check fees, settlement, limits, eligibility, and refund processes.
- Check eCommerce compatibility. Confirm whether your platform supports a plugin, pre-built integration, or API.
- Complete merchant onboarding. Submit the required business information and agree to the provider's merchant terms.
- Configure the integration. Set up the relevant payment method and any product-page or checkout messaging.
- Test the checkout journey. Test successful payments, failed approvals, cancellations, refunds, and order reconciliation.
- Monitor BNPL adoption, AOV, and conversion. Give customers time to adopt the new payment option, then use your data to assess its impact.
BNPL regulation and consumer considerations in South Africa
The regulatory environment around BNPL in South Africa is evolving, so merchants should avoid assuming that every provider operates under exactly the same legal framework. The current debate includes whether particular BNPL products fall within existing credit legislation.
Some BNPL products are often described as operating in a regulatory grey area because certain models may fall outside portions of the traditional credit-regulation framework. The non-existence of explicit interest rates and short repayment periods make many BNPL products fall outside the formal scope of the National Credit Act (NCA) and National Credit Regulator (NCR) registration.
For merchants, the practical takeaway is to focus on transparency and due diligence. Make sure customers can understand:
- What they will pay upfront
- How many instalments are required
- When future payments will be collected
- What happens if a payment is missed
- How refunds and returns are handled
- Which provider’s terms apply
Also review your merchant-provider agreement regularly. As the BNPL market matures and regulation develops, provider requirements and operating models may change.
Whether you’re reviewing or upgrading your payment processes,
reach out to Netcash for flexible solutions that grow with your business.
FAQs about BNPL in South Africa
Choose the right BNPL option for your online store
Buy Now, Pay Later can be a useful addition to your eCommerce payment mix, particularly if you sell higher-value products or have customers who value flexible payment options. But choosing a provider should involve more than looking at the customer-facing instalment plan.
Compare merchant fees, settlement, transaction limits, customer eligibility, integration, checkout experience, and reporting before deciding. Then measure the effect on your own AOV, conversion rate and margins.
No single BNPL option is best for every South African online store. The right solution fits your customers, products, and business model while giving you a payment experience you can manage efficiently.
Author:
Candice Sergeant
Product Manager
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Candice Sergeant is a digital dynamo at Netcash, where she’s on a mission to help South African businesses level up their online game. As an eCommerce Product Owner, she’s got her finger on the pulse of the latest trends and technologies, constantly seeking out ways to boost sales and streamline operations. With a knack for spotting opportunities and a passion for innovation, Candice is your go-to guide for taking your e-commerce business to the next level.
