Buy Now Pay Later: Payflex vs MoreTyme vs Happy Pay
By MoneyToday Team • Dec 09, 2024 • 6 min read
Gone are the days of putting items on "Lay-by" and waiting 3 months to take them home. The new trend sweeping South African e-commerce is Buy Now, Pay Later (BNPL).
Services like Payflex and MoreTyme let you take the goods immediately and pay over 6 weeks to 3 months, interest-free. But is there a catch? In this guide, we compare the top providers and expose the hidden fees.
| Provider | Installments | Deposit | Interest |
|---|---|---|---|
| Payflex | 4 (over 6 weeks) | 25% Upfront | 0% |
| MoreTyme (TymeBank) | 3 (over 2 months) | 50% Upfront | 0% |
| Happy Pay | 2 (next month) | 0% Upfront* | 0% |
| Float | Up to 24 | 0% Upfront | 0% |
| Mobicred | Revolving | 0% Upfront | ~21% p.a. |
**Mobicred is strictly speaking Credit, not BNPL, as they charge interest.
1. Payflex (The Market Leader)
If you shop at Superbalist, Takealot, or Cotton On, you've seen Payflex. It is the most widely accepted BNPL in South Africa.
How it works
You pay 25% today. The remaining 75% is split over 3 more payments every 2 weeks.
2. Float (The Smartest Option)
Float works differently. It uses the available limit on your existing credit card (Visa/Mastercard) to split payments. It doesn't give you new credit.
Why it's genius
- No Applications: Since you already have the credit card, there are no credit checks.
- Longer Terms: Merchants can offer up to 24 months interest-free.
- Rewards: You still earn your eBucks/Greenbacks on the full purchase amount.
Note: Float "reserves" the full amount on your card. So if you buy a R10,000 TV, you need R10,000 available on your credit card. You just pay it off monthly without interest.
3. MoreTyme (By TymeBank)
Exclusive to TymeBank account holders. It's often used at Pick n Pay Clothing and The Foschini Group.
You pay 50% upfront. Then 25% in 30 days, and 25% in 60 days. Because the upfront deposit is high, it is less risky for you (less debt to pay later).
Does BNPL affect my Credit Score?
The Myth: "It doesn't check my credit score, so it doesn't affect it."
The Reality:
- Most BNPLs do a "soft check" (doesn't hurt score) to approve you.
- However, if you MISS a payment, they report you to the Credit Bureaus (TransUnion/Experian).
- A default on Payflex looks just as bad as defaulting on a bank loan. It can ruin your chances of getting a home loan or car finance later.