Buy Now, Pay Later and over-indebtedness: Micro Finance South Africa calls for proactive cooperation
(Johannesburg, 22 September 2025) – MicroFinance South Africa (MFSA) has expressed concern about the rapid growth of Buy Now Pay Later (BNPL) products in South Africa, cautioning that without proper oversight and cooperation, these offerings could unintentionally contribute to higher levels of consumer indebtedness.
While BNPL has been marketed as a convenient, interest-free payment option that can broaden access and support financial inclusion, there are risks if the products are left entirely outside of the established credit regulatory framework.
“BNPL has a place in South Africa’s financial ecosystem, but like any form of credit, it must be transparent, responsible, and sustainable,” says Leonie van Pletzen, CEO of MFSA. “We want to work with all BNPL players to develop an industry code that protects consumers, supports retailers, and ensures that this innovation strengthens – not undermines – financial health.”
MFSA’s key concerns
· Unrecorded Debt Exposure: Consumers may hold multiple BNPL accounts across different platforms, but these obligations are not always visible to other credit providers or credit bureaus.
· Consumer Protection Gaps: Unlike regulated credit under the National Credit Act (NCA), BNPL providers often have limited obligations for affordability checks or disclosure of risks.
· Systemic Risk: A build-up of unmonitored BNPL debt could place strain on households, retailers, and service providers.
· Global Lessons: Regulators in the UK, US, and Australia are already strengthening rules around BNPL in response to rising defaults and consumer hardship.
MFSA is advocating for BNPL products to be expressly included under the NCA, with clear requirements for affordability assessments, credit bureau reporting, and consumer disclosures.
However, the association stresses that collaboration is the way forward.
“We are not calling for restrictions that stifle innovation. Instead, we are inviting BNPL providers and regulators to work with us on an industry code that balances innovation with responsibility,” concludes van Pletzen. “This is our chance to set clear standards before challenges escalate, and to show that South Africa can lead with proactive, consumer-centred solutions.”
Ends
About Leonie van Pletzen
Leonie van Pletzen is the Chief Executive Officer of MicroFinance South Africa (MFSA), a leading voice for the microfinance sector in South Africa. With nearly 15 years of experience in the industry, Leonie is recognised as a passionate advocate for ethical lending, financial inclusion, and regulatory reform. Having risen through the ranks at MFSA since 2010, she brings a wealth of expertise in industry advocacy, corporate governance, stakeholder engagement, and sustainable development.
Leonie has played a key role in shaping policy dialogue between government, regulators, and the private sector, and is an active contributor on various national committees, including the National Credit Regulator’s Credit Industry Forum and the Banking Sector Education and Training Authority. Her leadership is defined by a commitment to protecting vulnerable consumers while ensuring the long-term sustainability of responsible credit provision in South Africa.
About MFSA
MicroFinance South Africa (MFSA) represents South Africa’s registered microfinance institutions, advocating for ethical lending, consumer protection, and financial inclusion. Through industry leadership, MFSA promotes responsible credit practices that empower individuals, support small businesses, and drive economic growth.
For further information contact:
Claire Watt | Ntokozo Kalako
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Email: claire@thefridaystreetclub.co.za | ntokozo@thefridaystreetclub.co.za