Buy online
You’ll see it at almost every online checkout these days: a little button offering to split your purchase into four easy payments, with approval in seconds and no interest charged. It feels harmless, and sometimes it genuinely is. After all, spreading the cost of something you’re already buying across a few weeks (for smaller purchases) or a few months (for larger purchases) can take real pressure off your budget. And if there’s no interest, there’s no real danger, right?
Unfortunately, when borrowing money feels effortless, it becomes a bit too easy to borrow for a purchase now instead of saving for a purchase later, and that’s a slippery slope that ends in more debt than you bargained for. So before you tap “agree” on that next buy now pay later (BNPL) offer, let’s make sure you understand what you’re signing up for.
How BNPL works
BNPL is a form of short-term credit. When you choose it at checkout, the BNPL provider pays the retailer upfront and you pay the provider back in instalments. Most plans split the cost into three or four equal payments, with the first taken at purchase and the rest deducted from your account over the following weeks or months.
Buy a pair of shoes for R1,200, for example, and you might pay R300 today and R300 on each of the next three payment dates. With many BNPL providers, if every payment goes through on time, you pay no more than the original purchase price because no interest or fees are charged.
Where the costs hide
“Interest-free” doesn’t always mean free. The costs of taking the BNPL option tend to sit in the fine print and only show up when something goes wrong. Here’s what to be aware of:
- Late and missed-payment fees: If there isn't enough money in your account on the day that your installment is deducted, many providers charge a fee. On a small purchase, one or two of these can add a surprising amount to what you end up paying. Your bank may also charge you for the failed debit order.
- Your credit profile: BNPL is credit. Depending on the provider, missed payments may be reported to credit bureaus, which can make it harder or more expensive to borrow when it really matters, like when you apply for a home loan or vehicle finance.
- Money that's already spoken for: Every BNPL instalment reduces what you'll have available next week or next month. That can leave you short for essentials and tempted to borrow again to cover the gap.
Why it's easy to overspend
BNPL is designed to remove friction. Think of the number of hoops you need to jump through in order to get traditional credit like a bank loan or store account, from filling in lengthy forms to submitting income statements. The process and the wait for approval are points of friction. But friction, annoying though it may be, is often what protects us from spending we’ll regret.
BNPL instalments can also be spread across different dates, stores and sometimes providers, so there’s no single place showing everything you owe.
If you've found yourself juggling more BNPL plans than you meant to, it doesn't mean you've been careless. It simply means the system is doing what it was designed to do: convincing you to take on debt by being easy to use.
When BNPL is a useful tool, and how to use it safely
Used with intention and a plan, BNPL can be a helpful financial tool. It works best when the purchase is something you’ve already planned and budgeted for, and when you’re managing one purchase at a time.
Say your fridge has been on its last legs for a while and you've been setting aside money for a replacement. When it finally gives in, you could use BNPL to spread the R8 000 cost over a few weeks or months, keeping enough in your account for groceries and bills while you pay it off. With an interest-free BNPL plan, as long as you make your repayments on time, you would pay no more than the R8 000 purchase price. That’s a much better deal than buying the same appliance on a store account that charges 20% interest.
Before you commit, ask yourself one simple question and answer it honestly: would I still buy this if I had to pay the full amount today? If the answer is no, that means BNPL isn’t really making that purchase affordable. It’s only making it feel affordable.
If you do go ahead, build in some protection:
- Add every payment date to your calendar.
- Make sure the money is in your account a day or two before each deduction.
- Keep a list of your active plans so you can see your total commitment at a glance.
- Read the terms before you agree, especially the section on fees.
When it's a trap, and what to avoid
BNPL becomes risky when it evolves from an occasional tool to a regular habit. Be cautious if you find yourself:
- Using it for everyday essentials like groceries, fuel or airtime.
- Running several plans with different providers at the same time.
- Using one form of credit to cover a payment on another.
- Buying things simply because the upfront cost looked small.
- Avoiding your banking app when payment dates come around.
That last one is a big red flag. If BNPL has started to feel stressful, take it as a signal to pause, take stock and hold off on new purchases until the existing ones are paid off.
If you'd like support getting back on top of your spending, Truth About Money's practical short courses, including Ditching Debt and Cash Crunch, can help you build confidence at your own pace.
Convenience should work for you
BNPL isn't good or bad on its own. It's a tool, and what matters is how you use it. With intention, it can ease the pressure of a necessary purchase. On autopilot, it can stretch your budget further than you realise.
The goal isn't to fear credit. It's to stay in charge of it. A moment's pause at checkout can be the difference between a smart decision and a debt you didn't see coming.