South African consumers are increasingly turning to Buy Now, Pay Later (BNPL) services during a surprising time of the year: just after receiving their annual bonuses. New insights from Payflex reveal that a significant share of BNPL purchases occurs in February and March, highlighting how consumers strategically use short-term financing tools to balance responsible debt management with discretionary spending.
According to Tracey-Lee Zürcher-Campbell, spokesperson at Payflex, the pattern may initially seem counterintuitive but reflects deliberate financial behavior.
“We find that responsible consumers use large parts of their bonus to pay off bigger debts, like store or credit cards. However, they also want to enjoy some of it. They use BNPL to pay off smaller special purchases over a few weeks, without incurring additional interest, or affecting their debt repayment plans.”
The data indicates that spending patterns across Payflex’s BNPL products demonstrate clear seasonal trends. Consumers tend to increase spending before and during the winter months, when apparel purchases typically rise due to the higher cost of winter clothing compared to summer items. Retail activity also spikes during key shopping periods such as Black Friday in November and the festive shopping season in December.
Despite these spikes, the start of the year remains relatively subdued in terms of total spending value. Zürcher-Campbell notes that post-holiday financial pressure continues to shape consumer behavior.
Unsurprisingly, Payflex always sees lower spend in actual rand value in January and February, Zürcher-Campbell says, “because Janu-worry is a real thing”.
However, while total spending values fluctuate seasonally, the frequency of BNPL use remains remarkably stable throughout the year once growth is factored in. “In other words, it is the Rand value that is seasonal, not whether people use BNPL,” she says.
Demographic trends also reveal a strong gender skew within the BNPL market. Women account for roughly 73% of BNPL users on the Payflex platform. The dominant spending category is fashion and apparel, followed by general online marketplaces such as Takealot and Makro, which offer a wide range of consumer goods. Technology and electronics rank third, followed by home and décor, health and beauty, and fitness and wellness products.
Industry data from TransUnion further highlights how BNPL products may be filling gaps in traditional credit access. Its CreditVision Telco Data Score modelling suggests that more than 1.4 million credit-invisible South Africans open new credit accounts each year. Roughly 35% of these new-to-credit consumers are under the age of 25, many of whom need flexible payment options to cover essential purchases before receiving their first paycheck.
“This may in part explain the popularity of the fashion and apparel category,” Zürcher-Campbell says. “With BNPL, consumers are not overspending on ridiculous credit limits, but rather taking a very strategic decision to smooth out their spending over time, using relatively small credit limits.”
The continued expansion of BNPL adoption in South Africa appears poised to accelerate. Based on growth observed over the past year, Payflex expects the overall BNPL market size to double in the next financial year, underscoring the growing role of flexible payment solutions in consumer retail finance.
Tracey-Lee Zürcher-Campbell, spokesperson at Payflex
About Payflex
Payflex is a leading Buy Now Pay Later (BNPL) provider in South Africa. The company enables consumers to split purchases into interest-free instalments while helping merchants to increase conversion, basket size, and customer loyalty. Payflex is independent, with no competing retail or merchant interests, and is a trusted, responsible fintech partner in the payments ecosystem.
