BNPL Debt Is Coming To Credit Records, But Will That Solve SA’s Affordability Crisis?

South Africans keep financing groceries and medicine on BNPL before old instalments clear. It's going on credit records from 2027, but visibility isn't the same as affordability.

03 September 2026: From February 2027, South Africans' Buy Now, Pay Later payment behaviour will be reported to credit bureaus for the first time, under new requirements issued by the National Credit Regulator (NCR).

The move closes a long-standing gap. BNPL has operated with far fewer affordability checks than traditional credit, letting consumers carry several instalment plans at once with no single lender able to see the full picture.

But Sebastien Alexanderson, Head of National Debt Advisors (NDA), warns that increased credit visibility will not solve the underlying affordability crisis driving South Africans to finance daily survival on credit.

"The NCR is fixing an important visibility problem, but visibility is not the same as affordability," says Alexanderson. "A fridge may still be useful when the final instalment comes off. Groceries are already gone. When you are paying for yesterday's food while financing today's basket, you are effectively committing tomorrow's salary to the same expenses twice."

TransUnion data shows 39% of South Africans expect to miss at least one bill or loan payment, while the South African Reserve Bank (SARB) has warned that multiple concurrent BNPL obligations, combined with consumers' perceived affordability, could increase over-indebtedness.

Alexanderson said BNPL has expanded well beyond the clothing, electronics and appliance purchases it built its reputation on. It is now used to pay off groceries, utilities, transport and healthcare, and these behave nothing like a fridge or a laptop.

“Food gets eaten. Electricity gets used. A taxi ride ends. Medicine runs out. But the instalment attached to it stays on the account,” he said.

What The New Credit Visibility Means For BNPL Users

Research published by the US Federal Reserve in August 2026 shows why the type of purchase matters. BNPL users financing groceries or food delivery were more likely to incur late-payment or overdraft costs, while 34% of those using it for medical or veterinary bills reported the same.

“These figures show us where to look. When BNPL pays for something you need again next week or next month, the old obligation doesn’t disappear. It collides with the new expense.”

The NCR’s move will give credit bureaus a fuller view of consumers’ BNPL commitments, reducing the ability for multiple obligations to remain invisible during credit assessments.

Alexanderson says consumers need that same visibility now.

“R250 here and R400 there may each look affordable. The real question is what happens when they all land against the same salary.”

The Warning Sign To Watch For

Alexanderson says the clearest warning sign is when BNPL starts funding the same essential twice.

“If you need BNPL for this month’s groceries before you’ve finished paying for last month’s, the problem is no longer the payment method. It means today’s income can’t cover today’s essentials without borrowing from tomorrow.”

BNPL itself is not the enemy, he stresses. Used for a planned purchase that comfortably fits the budget, an interest-free instalment plan can be useful.

The problem is asking, “Can I afford this instalment?” instead of: “After every payment already waiting for my next salary is deducted, can I still afford to live until payday?”

“That is the number consumers need to know. February will give the credit industry greater visibility of BNPL. South Africans should give themselves that visibility now.”

ENDS

About National Debt Advisors

National Debt Advisors is a South African debt counselling firm that has helped more than 109,000 clients since 2014 restructure their debt and work towards financial recovery. NDA works with consumers struggling with unmanageable debt to negotiate reduced payments with creditors and provide a single, manageable repayment plan under the National Credit Act.