South Africa Startup Makes Buy-Now-Pay-Later Free

Imagine splitting your payments into installments without paying a single cent in interest or fees. That's the promise Happy Pay is bringing to more than 600,000 South Africans, and it just got a major boost.

The Johannesburg-based startup raised $5 million to expand what it calls Africa's first ad-supported payments network. Instead of charging consumers for the convenience of splitting purchases, Happy Pay asks merchants and brands to cover the cost through targeted advertising.

Founded in 2021 by Wesley Billett, Patrick Postrehovsky, and Mark Geary, the company built an AI engine that matches shoppers with relevant products in real time. When someone opens the Happy Pay app, they see personalized offers from merchants who only pay when a sale actually happens.

"Credit has previously been monetized through the consumer," said Billett. "We're proving it can be monetized through value creation instead."

The timing couldn't be better. More than half of South Africans now use buy-now-pay-later services for online purchases, according to a Stitch payments survey. The market hit $815 million in transactions this year, up from $717 million in 2024.

As living costs climb, people are turning to installment payments not just for splurges but for essentials. Happy Pay is positioning itself as a cash-flow management tool that doesn't trap users in debt cycles.

The funding round was led by Partech, with backing from Futuregrowth Asset Management, 4Di Capital, E4E Africa, Equitable Ventures, and Felix Strategic Investments. The money will help Happy Pay deepen partnerships with retailers and expand both online and in physical stores.

The Ripple Effect

The model creates wins across the board. Consumers get genuine payment flexibility without hidden costs eating into tight budgets. Merchants gain access to motivated shoppers and only pay for actual results, not advertising that might not convert. Brands connect with high-intent customers at exactly the right moment.

"BNPL only makes sense when it delivers real affordability for consumers while helping merchants improve conversion, grow their client base, build loyalty, and reduce acquisition costs," said Matthieu Marchand, Principal at Partech.

By removing payment friction and making commerce itself fund the flexibility, Happy Pay is proving that financial services don't have to extract value from those who can least afford it.