The Pros and Cons of Buy Now, Pay Later in South Africa – Regulation & Consumer Risks

Buy Now, Pay Later (BNPL) has become a popular payment method in South Africa, allowing consumers to split purchases into interest-free instalments. While convenient, the lack of regulation and affordability checks raises concerns. In this podcast, Leonie van Pletzen, CEO of Microfinance South Africa, highlights the risks—such as over-indebtedness and unrecorded credit bureau data—that leave consumers vulnerable. She calls for industry collaboration and responsible regulation to protect consumers while encouraging financial education. The discussion also explores how unchecked BNPL providers impact credit scores and why transparency is crucial for sustainable lending.