
Voucher payments in South Africa: A deep dive for key industries
May 30, 2025Shopping online has completely taken over the digital world, and innovative payment options are at the forefront. Thanks to technological advancements and the growing need to spend wisely, more and more people are looking at affordable and inclusive options like buy now, pay later.
These flexible payment trends are significantly increasing among the younger generation, who are constantly seeking out alternatives to traditional options such as debit or credit cards.
If you want to know more about BNPL, its benefits, and exactly how it can boost your online business, then keep reading.

How does BNPL compare to other payment options?
BNPL offers more flexibility and affordability than traditional payment methods such as debit and credit cards. Not only that, but it also offers interest-free financing, making it more attractive to consumers who have no access to credit cards or who want to avoid debt accumulation.
Another thing that sets BNPL apart from other options is that these services usually have fewer credit checks compared to traditional credit cards. This is beneficial for consumers with limited credit history.
How is BNPL performing in South Africa?
The BNPL market is experiencing rapid growth in South Africa as more shoppers are becoming aware of its benefits. There’s no sign of BNPL services slowing down while eCommerce and preferences for flexible payment options continue to expand.
If we look at the numbers, we see that South Africa’s BNPL market experienced a Compound Annual Growth Rate (CAGR) of 23.5% between 2021 and 2024. Its recent value of USD 717.3 million is projected to jump to about USD 1.30 billion by the end of 2030.
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The most popular BNPL options in South Africa
Here are some of the most popular payment gateways that offer BNPL options in South Africa:
- Payflex: A BNPL service and Netcash partner that allows shoppers to split their purchases into four interest-free payments over six weeks.
- PayJustNow: A BNPL service that splits payments into three interest-free instalments over three months.
- Netcash: A payment solution provided that offers diverse payment methods including BNPL, in partnership with Payflex.
- Happy Pay: A BNPL service that splits consumer’s purchases into two equal, interest-free payments aligned with their paychecks, and requiring no deposit.
- Float: A BNPL service that allows you to split payments into four interest-free instalments at partnered stores.
- Payfast: A payment gateway that integrates with Mobicred to offer BNPL services.
- Peach Payments: A payment gateway that offers BNPL options via MoreTyme, PayJustNow, and Mobicred.
- Mobicred: A digital credit facility that accommodates BNPL through monthly instalments.
The benefits of BNPL for businesses
Buy now, pay later services can boost sales, encourage consumers to spend more, and reduce cart abandonment. Let’s have a closer look at some of the main benefits of using BNPL as a payment option.
Increased sales and conversions
Customers are more likely to complete purchases when they can pay in interest-free instalments. People may not have the means or perhaps did not budget for a huge expense, and these solutions allow them to receive their desired product/service instantly.
So, instead of taking the time to save up or opting for expensive credit card payments, more shoppers are enjoying this flexible solution.
Larger cart sizes
Customers tend to spend more when given buy now pay later options. Knowing that they can pay in instalments or at a later date gives shoppers the confidence to shop more freely.
Attracting new customers
BNPL appeals to younger consumers and those without access to debit or credit cards. Offering more than one way to pay opens up the doors to new audiences.
Catering to the different financial needs of shoppers can increase customer satisfaction, encouraging them to return to your storefront.
Improved cash flow
Businesses receive full payment upfront from BNPL providers, while customers pay in instalments. Since merchants receive the full payment instantly, they can plan out their finances more effectively, allowing them to reinvest in operations, stock inventory, etc.

How BNPL improves customer experience
BNPL empowers customers by helping them avoid large upfront costs and have more control over their finances. Its convenience and affordability make it appealing to consumers who prefer not to use credit cards due to high interest rates.
Since big payments are split up into smaller, more manageable payments, customers will have more purchasing power to access products they might otherwise not have access to.
Thus reducing barriers to purchasing high-ticket items and allowing customers to enjoy their products/services right away.
Potential challenges & considerations
There are some potential challenges and setbacks to consider to help you decide whether BNPL is worth it.
Fees and commissions charged by BNPL providers
BNPL providers typically charge merchants a fee for each transaction (often 2-8% of the sale cost). This can significantly impact the profit margin of your business.
Returns and chargebacks
Some BNPL providers pass chargebacks initiated by customers relating to the quality of the product or delivery to the merchant. This is why it's essential to review the provider’s policies on merchant disputes before partnering with them.
Ensuring compliance with financial regulations
The fast growth of BNPL services has led to increased scrutiny from regulators. While these regulators are concerned about consumer protection and financial stability, most BNPL providers continue to operate largely outside of traditional financial regulation.
And since it’s the “new kid on the block,” the lack of adequate BNPL-specific regulation can result in financially vulnerable consumers being at risk. This means providers will have to adapt to the new regulatory landscape in order to comply, impacting their business model and risk management frameworks.
How to choose the right BNPL provider
Here are some key factors to keep in mind when selecting a BNPL partner:
Does it offer multiple payment options?
Choose a payment gateway that provides a wide range of payment solutions to cater to various preferences. For example, Netcash offers multiple payment methods along with a Pay Now solution with Payflex to ensure customers have plenty of options to suit their specific needs.
Does it appeal to your target audience?
First, do some research on whether your target audience will likely be on board with BNPL. Consider their salary cycles and cash flow patterns and go with a provider that aligns with those.
Does it meet your needs?
Choose a provider that matches your business model and meets your expectations. Do you need one that specialises in a specific industry or a general-purpose BNPL provider? Does it offer good customer service, what fees and charges do they have, do they have security measures in place?
Final thoughts on buy now, pay later for businesses
There’s no better time to start offering BNPL options to your customers. It simply has too many excellent benefits to ignore, such as increasing sales, attracting new customers, and improving cash flow.
This is why Netcash has integrated with Payflex to offer its customers a Pay Now solution that allows them to receive full payments up-front and risk-free. With 0% interest and marketing tools at your disposal, providing your customers with flexible payment solutions has never been easier.
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Reach out to us to help you get flexible payment options available on your ecommerce website.

Percy's a results-oriented financial services pro with a knack for sales, product management, and building strong teams. He's all about smashing goals and turning strategies into wins. With his communication skills and EQ, he connects with everyone, internal or external. Clients and colleagues love his laser focus, product expertise, and sharp business mind.