How it works

Buy now, pay later (BNPL) can feel convenient—buy today and split the cost into small installments, often with no interest if you pay on time. In South Africa, the appeal is clear, but so are the risks. BNPL can encourage spending beyond what you can truly afford, leading to a hidden debt stack that grows as new purchases accumulate.

Credit score affected

Credit scores in SA interact with BNPL in a nuanced way. Not all BNPL providers report to credit bureaus, so timely BNPL payments may not boost your credit score. However, if a provider does report, or if the BNPL becomes a formal credit agreement under South Africa’s National Credit Act (NCA), missed payments can be recorded and hurt your score. The lack of uniform reporting can create a confusing picture, and your credit position can change depending on which BNPL service you use.

Affordability is important

Affordability remains the core risk. Multiple BNPL plans can create overlapping monthly obligations, and late fees can add up, squeezing your budget and limiting future borrowing options.

Manage and keep close

Verification and tips for South African households

– Check your credit file with SA bureaus (TransUnion and Experian are active in SA) to see how BNPL is treated.

– Use BNPL sparingly; avoid rolling balances.

– Set reminders and keep a single debt budget.

– Before applying, confirm whether the BNPL provider reports to the credit bureaux and how late payments are treated.

Note: BNPL and credit reporting rules can vary by provider and over time. If you’re unsure, contact your BNPL provider or a SA credit bureau for the latest guidance.