The Shoprite Group has entered into a strategic partnership with PayJustNow, a subsidiary of Weaver Fintech, to introduce Buy Now, Pay Later (BNPL) payment options across its extensive retail ecosystem. This initiative covers a broad range of brands, including Shoprite, Checkers, Usave, and specialized stores like Petshop Science and Uniq clothing, while also extending to digital platforms such as Checkers Sixty60 and Computicket. By allowing customers to spread the cost of both daily groceries and high-value items over interest-free installments, the Group aims to provide a flexible financial tool that helps consumers manage large expenses without the immediate burden of full payment at the till.
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According to Jean Olivier, GM of financial services at Shoprite Group, this move addresses a significant gap in the South African market, where fewer than one in five citizens possess a credit card. For many households, alternative payment tools represent a critical means of maintaining financial stability while attending to urgent needs, such as replacing a broken appliance or purchasing school supplies. Unlike traditional lay-by systems, which require the total balance to be settled before the customer receives the goods, the BNPL model allows for immediate possession of the items upon the first payment, effectively modernizing the instalment purchase concept for the digital era.
To mitigate risk, PayJustNow employs proprietary vetting algorithms and a “low and grow” strategy. This approach starts consumers with small credit limits, which are gradually increased based on consistent, positive payment behaviour. Dean Hyde, chief operating officer of PayJustNow, noted that this methodical approach has kept the company’s default rates below 2%, a sharp contrast to the high default rates of roughly 40% seen in some international markets. Hyde emphasized that the industry is open to a clearly defined regulatory framework, provided it is developed in consultation with fintech stakeholders and tailored specifically to the unique nature of the BNPL product rather than being folded into existing micro-lending regulations.
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The push for regulation is supported by organizations like Microfinance South Africa, which seek to protect consumers from potential debt traps and predatory practices. The BNPL sector is currently engaging with regulators through the Fintech Association of South Africa to establish these market-specific standards. While experts like consumer journalist Wendy Knowler acknowledge that BNPL is a viable and useful tool when managed properly, they maintain that traditional lay-by remains the safest route for consumers who do not require their purchases immediately. As this partnership scales, it highlights a significant shift toward digital financial inclusion in South Africa’s retail landscape, balancing immediate consumer needs with evolving credit strategies.
