Another BNPL option arrives at the checkout

African-focused fintech provider EFT Corporation has added a buy now, pay later (BNPL) option for clients at checkout through a partnership with Happy Pay.

The move follows strong growth in the BNPL market, which has driven higher sales and order values for merchants. EFT Corporation says some markets have recorded a compound annual growth rate of 23.5%.

Happy Pay’s BNPL service has been integrated into EFT Corporation’s hosted checkout platform. This aims to offer merchants across South Africa expanded payment flexibility for e-commerce customers. The service is facilitated through the EFT Corporation’s technology stack.

“Clients doing e-commerce transactions with us already have various payment methods available, such as capturing card details, using Scan to Pay online, instant EFT Solutions, and more,” says Catherine Korsten, EFT Corporation chief commercial officer. “But because the BNPL market is growing so rapidly, and consumers are starting to expect it, we wanted to be able to also offer this option to our clients.”

She says EFT Corporation wanted to expand its value to its e-commerce clients by giving merchants more payment flexibility without the complexity or risk of managing consumer credit directly.

“Happy Pay’s model has been tailored to meet local needs, aligning with monthly income cycles in Sout Africa. This allows consumers to make purchases and split the cost over two interest-free payments scheduled around their personal paydays – without the need for upfront deposits. It is a transparent, fee-free alternative to traditional credit, and one that resonates with the realities of South African consumers.”

EFT Corporation says the process is seamless for merchants and consumers alike. If the merchant enables Happy Pay via EFT Corporation’s platform, the option appears at checkout as a payment method. After clicking the button and registering with Happy Pay, an AI-driven approval system assesses affordability and processes credit approval. The buyer’s first instalment, which is 50% of the total amount, is due on their first payday post-purchase, and the remaining 50% is then paid on their next payday.

EFT Corporation and its clients take on none of the risk, with EFT Corporation facilitating the interaction between the consumer and Happy Pay in its built environment. Happy Pay is responsible for onboarding the consumer, settling the full amount with the merchant, and collecting any additional payments directly from the consumer.

Wesley Billett, Happy Pay CEO, says: “BNPL, when designed correctly, can help bridge the financial inclusion gap by offering a genuine alternative to high-interest retail credit and payday loans. Traditional credit models rely on outdated scoring and charge consumers heavily just to access credit.

“At Happy Pay, we flip that model. We use real-time affordability data to offer cost-free instalments to consumers, funded by the value we deliver to merchants through increased conversion, higher basket sizes, and new customer acquisition.”

“This approach allows us to offer cost-free instalments, helping consumers avoid debt spirals while giving merchants a powerful growth tool. It is a more inclusive and sustainable model for consumer finance, one that saves South African households millions in interest and fees each year.”

Happy Pay says its merchant users have seen basket sizes increase by a sizeable average of 190%, with none of the credit management risk.

Korsten says: “We have seen BNPL serve as a powerful tool to empower financially underserved communities. Once dismissed as a niche payment option, it is clear why BNPL has become a significant force in the market, challenging traditional payment models and offering a pathway to financial inclusion for many underserved consumers. At EFT Corporation, financial inclusion has always been top of mind, and this is one more way we’re bridging that gap.”