---
title: "Should I add Buy Now, Pay Later to my store? | NjiaPay"
canonical_url: "https://njiapay.com/resources/blog/should-you-add-buy-now-pay-later-to-your-checkout"
last_updated: "2026-10-15T16:27:15.176Z"
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description: "This guide covers who uses BNPL in South Africa, what it does for the businesses that offer it, what it costs, and how to test whether it’s a good fit for your store."
"og:description": "This guide covers who uses BNPL in South Africa, what it does for the businesses that offer it, what it costs, and how to test whether it’s a good fit for your store."
"og:title": "Should I add Buy Now, Pay Later to my store?"
---
15 Oct 2026
# **Should You Add Buy Now, Pay Later to Your Checkout?**
Nearly four in ten South African consumers tried Buy Now, Pay Later (BNPL) for the first time in the past year, according to Stitch's 2026 consumer payments report. Among consumers who already use credit, 71% now use BNPL at least some of the time. \[1]
So should you add it to your online checkout?
BNPL is usually worth adding when your order values are high enough that splitting a payment changes the decision to buy, your margins can absorb a fee above standard card rates, and if you're noticing a drop-off at checkout because shoppers can't pay the way they want.
This guide covers who uses BNPL in South Africa, what it does for the businesses that offer it, what it costs, and how to test whether it’s a good fit for your store.
# **Who buys with BNPL in South Africa?**
BNPL use in South Africa peaks among middle-income shoppers, not those who can't afford to pay upfront. A recent survey of 3,000 consumers found engagement is highest among households earning R25,000 to R50,000 a month, at 69.6%. Higher-income households follow at 62.9%, and the mass market sits lowest at 54.1%. \[2]
## **Why South Africans choose BNPL**
Convenience is the main reason. In the same research, 58% of BNPL users named convenience as their primary reason and 49% pointed to the interest-free structure. \[3] Among people who don't use BNPL, avoiding debt was the leading reason given.
The typical BNPL user isn't short on funds. They're choosing to keep money in their account a little longer, on their own terms. For a merchant, that makes BNPL a convenience feature competing with cards for a sale the customer already intended to make.
## **What South Africans buy with BNPL**
Electronics is the top BNPL category, with clothing and fashion second at 45.4% of BNPL users. Health and beauty, home and furniture, and groceries round out the top five. Nearly half of consumers (48.7%) want BNPL available both online and in-store, a demand most merchants don't yet meet. \[1]
# **What does BNPL do for businesses that offer it?**
The commercial case for BNPL rests on conversion, average order value, and access to customers you might not otherwise reach.
## **Conversion and order value**
The clearest published figures come from BNPL providers themselves rather than independent studies, so treat them as indicative. Globally, Klarna reports that merchants using its service see conversion rise by around 30%, average order value by around 45%, and purchase frequency by 20%. \[10]
Locally, Payflex's research among more than 600 of its customers found over 80% spend more at an online store that offers BNPL, and more than 90% shop more often where it's available. Almost 80% said they wouldn't have made their most recent online purchase without it. Payflex also reports that online stores see average order values rise by up to 30% after adding it. \[11] Like Klarna's, these are a provider's own figures for its platform.
Shopper demand points the same way. In Payfast's State of Pay 2025 study, BNPL was the most requested new payment method, with 34% of consumers asking merchants to add it. \[13] PayU's Black Friday 2024 data showed transactions through BNPL providers like Payflex and RCS up 86% year on year. \[12] Both confirm growth, though neither isolates BNPL's effect on conversion.
##
**A wider customer base**
Many South Africans are financially responsible but remain 'credit invisible' to traditional banks because they lack a credit card or loan history. While a BNPL purchase is often a consumer's first experience with flexible terms, it does not currently help build a formal bank rating. However, once new National Credit Regulator (NCR) reporting directives take effect in February 2027, a good BNPL payment record will finally be visible to banks, transforming it into a true gateway for other credit products.
TransUnion's research describes BNPL users as younger and earlier in their financial journey than traditional credit users, with more than a third from Generation Z. \[4] Offering BNPL puts your store in front of this group at the moment they're building financial habits, which can turn a first purchase into a repeat relationship.
# **How much does BNPL cost a merchant?**
BNPL costs more per sale than card processing, and that gap is the number to consider. South African gateways typically charge around 2.9% to 3.5% per card transaction. \[5]
South African BNPL providers don't publish standard merchant rates. These rates depend on the merchant’s volume and product category, and fees usually run several percentage points above card rates, ranging from 4% to 6%. \[6]
###
**What the fee gets you**
You're paid the full order value upfront, minus the fee, and the provider carries the credit risk. If a customer misses an instalment, the provider manages that exposure, not you. \[7]
### **When the fee pays for itself**
The fee tends to earn its keep at higher order values and healthier margins. Below roughly a 15% to 20% product margin, it usually eats up most of the sale’s profit. Above that, and at an order value where a split payment genuinely changes the decision to buy, there's real room for it to be worth it.
### **The cost that's easy to miss: returns**
BNPL orders tend to have a higher return rate than card orders, and most providers don't refund their fee when that happens. In high-return categories like fashion, that can turn a good-looking BNPL case negative: you pay the fee, the sale is returned, and you keep neither. Check your own return data before assuming a category fit. That is why it is crucial to monitor BNPL ROI and consider the Total cost of these payments.
#
**Is BNPL right for your business?**
### **Three checks to run before you decide**
Order value, margin and cart abandonment tell you whether BNPL deserves a closer look. If your store doesn't pass the first two, category and customer behaviour matter less.
1. **Order value.** Is a typical order large enough that splitting it changes whether someone buys today? On a R300 order, three payments of R100 make little difference, so most shoppers simply pay upfront. On a R5,000 smartphone, the choice is between paying R5,000 today or R1,250 a month over four months. A shopper who decides to wait and save instead may not come back, or may buy from a store that lets them pay over time. That delayed sale is the one BNPL can help you capture. As a rough starting point, payment gateway Netcash suggests promoting BNPL on orders over R1,500. \[15]
2. **Margin.** Can your margin absorb a fee above card rates? Below roughly 15% to 20%, it usually can't.
3. **Cart abandonment.** How many orders do you lose because shoppers couldn't pay the way they wanted? Around 70% of online carts are abandoned globally \[9], and peak season research from the global payment company Adyen shows 54% walk away if they can’t pay with their preferred payment method \[16]. Look at where shoppers drop off in your own checkout. Drop-off at the payment step, or above a specific price point, suggests price is the barrier, which is the problem BNPL solves.
### **Where BNPL makes the most sense right now**
Based on current local adoption data, BNPL delivers the clearest value for higher-consideration purchases in electronics, fashion, and home and furniture. It also suits stores where abandonment clusters at specific price thresholds, and categories newly seeing BNPL uptake, like groceries, where offering it early may win customers before competitors catch up.
# **Which type of BNPL provider suits your order value?**
Once you've decided that BNPL fits, the next choice is which kind of provider, because South African providers offer different options to the buyer, such as the number of payments and months. That repayment length decides which order sizes each one handles well.
- **Short-term, interest-free plans** split a purchase into a few instalments over several weeks. Payflex, for example, takes four payments over six weeks \[8], and PayJustNow takes three, aligned to paydays. \[6] These suit everyday and mid-sized baskets, where a few weeks of breathing room is enough.
- **Longer-term or revolving credit** spreads bigger purchases over months. Mobicred, for example, is a revolving credit facility regulated under the National Credit Act, with interest. \[6] This suits big-ticket items, where a few weeks wouldn't make the repayment manageable.
Match the provider to the order values you actually see, and check each provider's purchase limits against your typical basket.
#
**When is BNPL not worth adding?**
BNPL isn't a universal upgrade. For low-value, high-frequency purchases, or a customer base that already prefers paying upfront, the merchant fee may outweigh any conversion benefit. The BNPL Fit Assessment is designed to help you work this out for your own business, rather than relying on a general industry recommendation.
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### **Frequently asked questions about Buy Now, Pay Later in South Africa**
#### **What is Buy Now, Pay Later (BNPL)?**
BNPL lets a shopper split a purchase into instalments, usually interest-free if paid on time. The merchant is paid the full amount upfront by the BNPL provider, minus a fee.
#### **How much does BNPL cost South African merchants?**
Providers quote merchant fees individually based on volume and category, rather than publishing set rates but they can range between 4% to 6%. Expect the fee to sit several percentage points above standard card processing, which runs at around 2.9% to 3.5%.
#### **Does the merchant carry the risk if a customer doesn't pay?**
No. The BNPL provider pays you upfront and carries the risk of the customer missing instalments.
#### **Who uses BNPL most in South Africa?**
Households earning R25,000 to R50,000 a month show the highest engagement, at 69.6%, according to Stitch's 2026 consumer payments report. Most users choose BNPL for convenience, not because they can't afford to pay upfront.
#### **Which products sell best with BNPL?**
Electronics lead, followed by clothing and fashion, health and beauty, home and furniture, and groceries.
####
**Is BNPL regulated under the National Credit Act?**
Interest-free BNPL in South Africa currently sits largely outside the National Credit Act, which is why providers can approve customers quickly without full affordability checks. Revolving credit products that charge interest are regulated under the Act. This won't decide whether BNPL suits your business, but it’s useful context if compliance or brand-risk questions come up internally.
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#### Sources
1. Stitch, [How South Africans shop and pay online in 2026](https://stitch.money/blog/report-how-south-africans-shop-and-pay-online-in-2026). Survey of 3,000 South Africans with research agency Looka, March 2026. Full report: [consumer-report-2026.stitch.money](https://consumer-report-2026.stitch.money)
2. Stitch, [BNPL is no longer just a checkout feature](https://stitch.money/blog/bnpl-is-no-longer-just-a-checkout-feature-its-a-customer-expectation)
3. Stitch, [When should you offer Buy Now Pay Later?](https://stitch.money/blog/when-should-you-offer-buy-now-pay-later-what-the-consumer-data-shows)
4. ITWeb, [Buy-now-pay-later reshapes SA credit landscape](https://www.itweb.co.za/article/buy-now-pay-later-reshapes-sa-credit-landscape/P3gQ2MGAZ5kvnRD1) (TransUnion research)
5. BeNimble, [Best Payment Gateway in South Africa (2026)](https://benimble.co.za/pages/blog/2026/best-payment-gateway-south-africa-2026.html)
6. eCommerce Development, [Buy Now, Pay Later in South Africa: 2026 guide](https://www.ecommercedevelopment.co.za/buy-now-pay-later-south-africa/)
7. Payflex, [Buy Now Pay Later is growing rapidly in South Africa](https://payflex.co.za/merchant-hub/why-is-buy-now-pay-later-one-of-the-fastest-growing-payment-solutions-in-south-africa/)
8. CellularFin, [PayJustNow vs Payflex vs Mobicred](https://cellularfin.co.za/payjustnow-vs-payflex-vs-mobicred-south-africa/)
9. Baymard Institute, [Cart abandonment rate statistics](https://baymard.com/lists/cart-abandonment-rate)
10. Embryo, [25 stats about Klarna](https://embryo.com/blog/25-stats-about-klarna/) (figures originally reported by Klarna)
11. IT-Online, [Payflex research among more than 600 customers](https://it-online.co.za/?p=189589)
12. PayU GPO via Business Wire, [PayU GPO Data Shows Black Friday 2024 Reached New Heights in Africa](https://finance.yahoo.com/news/payu-gpo-data-shows-black-101400689.html), 2 December 2024
13. BusinessDay, [Buy now, pay later use doubles in 2025, Payfast reports](https://www.businessday.co.za/companies/2026-01-20-buy-now-pay-later-use-doubles-in-2025-payfast-reports/), 20 January 2026
14. Ozow, [Ozow and Happy Pay partner to bring Buy Now, Pay Later to South African merchants](https://ozow.com/blog/ozow-happy-pay-bnpl-south-africa)
15. Netcash, [How payment methods affect average order value](https://netcash.co.za/?p=14762)
16. Adyen, [Peak season readiness guide](https://www.adyen.com/knowledge-hub/peak-season)