Welcome back to Talking Success, one of the Best FinTech podcasts globally! In this episode, Darren chats with Mark McChlery about the transformative journey of Pay Just Now, a buy-now-pay-later (BNPL) platform that has reshaped consumer behaviour in South Africa. As the co-founder of Pay Just Now, Mark provides us with a unique insight into the company’s early challenges, evolution, and its key role in today’s economy.
Reflecting on the company’s origins, Mark shares how Pay Just Now, founded in late 2019, had to adapt a global BNPL model to meet the unique needs of South African consumers. While other markets, like Australia and Europe, had already embraced BNPL with great success, South Africa’s economic landscape required a fresh approach. Unlike countries where employees are paid weekly or bi-weekly, South Africans typically receive their wages monthly. Additionally, with higher interest rates in South Africa compared to other regions, adjusting the model to suit local conditions posed significant challenges.
Mark explains, “The hardest part was re-imagining a global payment method to fit the South African consumer. We had to consider the longer repayment cycles and higher cost of capital.” This flexibility, however, became one of the company’s core strengths, enabling them to offer consumers a predictable payment solution that fits their budget, all while providing merchants with a reliable alternative to traditional lay-by systems.
One of the most fascinating shifts discussed is the evolution of Pay Just Now’s consumer base. Initially, the platform attracted predominantly female consumers aged between 27 and 35. However, as the platform’s utility expanded, so did its demographic. Today, the 80% female user base now spans a broader age range of 27 to 47 years.
Mark also highlights the company’s progression from serving primarily fashion and apparel-focused consumers to meeting more practical needs. Now, Pay Just Now enables customers to split the cost of items like replacement tyres, allowing them to afford all four at once instead of staggering payments over several months. This shift in consumer behaviour showcases the platform’s versatility and its ability to accommodate both aspirational and essential purchases.
As one of the early movers in the South African BNPL space, PayJustNow has seen the market grow with new competitors entering the scene. However, their unique approach to understanding and adapting to the local market ensures they stay ahead. Mark’s experience in balancing merchant relationships and consumer demands has been instrumental in navigating this growth. By offering different settlement options to retailers—whether through monthly or daily disbursements—PayJustNow continues to deliver value to both consumers and merchants.
With a growing user base and an expanding array of products and services, PayJustNow is more than just a BNPL option; it’s a flexible financial tool that helps consumers make important purchases without compromising their financial stability.
One of the key insights shared by Mark in this segment is how Pay Just Now has catered to a broad spectrum of consumers, offering flexibility for purchases ranging from essential household items to hobbyist tools. Whether it’s buying a new pair of shoes, upgrading home appliances, or even investing in power solutions like inverters during load-shedding periods, Pay Just Now provides consumers with the option to split these payments into manageable instalments.
As Mark highlights, “It’s not just for the underbanked or credit-averse. There is a point for everyone on this platform, whether you’re making smaller purchases or big-ticket investments.”
This inclusivity is part of what has made the platform so successful, as it allows people from various walks of life to manage their spending more efficiently.
The discussion also touches on the early demographics of Pay Just Now’s user base. In its first 18 months, the platform primarily attracted female consumers, accounting for around 75-80% of users. Mark attributes this trend to cultural factors, particularly in South Africa, where women often bear the responsibility of managing household budgets. He explains how this demographic, known for being judicious and frugal with their spending, found great value in Pay Just Now’s offerings.
“Women are less likely to default and often use our service to manage both household necessities and personal purchases,” Mark explains. The ability to split payments into three instalments provided an easy justification to make personal purchases while staying within budget, particularly in a challenging economic climate.
Over time, Pay Just Now’s appeal evolved from a necessity-driven platform to one valued for its simplicity and trustworthiness. Mark notes that many consumers began using the service not only to access essentials but also for the convenience it offers. The ability to complete transactions seamlessly without the need to withdraw cash, especially in a country where many people still prefer to withdraw their salaries in cash due to mistrust in the banking system, has been a key driver of adoption.
The platform’s growth was also propelled by the realisation that using BNPL is often more cost-effective than other forms of credit. As Mark explains, “For some, it’s about spreading payments over three months and earning interest on their funds during that time—this realisation can lead to financial benefits.”
While Pay Just Now initially catered to consumers seeking credit alternatives, it has also attracted a more financially astute audience in recent years. Post-pandemic, South African consumers had more savings than before, making them more deliberate in their financial decisions. This growing financial literacy has allowed users to see the benefits of BNPL beyond mere convenience.
However, Mark also acknowledges the challenges posed by deeply ingrained consumer habits. Traditional retail credit has conditioned many to think of credit in terms of minimum payments and available credit, rather than a clear instalment plan. Educating consumers about Pay Just Now’s structure—offering interest-free instalments without revolving credit—has been crucial to its success.
The platform has also seen increased adoption by professionals, including accountants and individuals from the South African Police Service (SAPS), showcasing the broad appeal of the service.
While PayMeNow is a for-profit company, it is clear from speaking with the founders that profit isn’t the sole motivation. Bryan Habana reflects on how proud he is of the positive impact the company has had on financially excluded communities. “I go to bed every night knowing we’re making a real difference in people’s lives. That’s something rugby never gave me.”
This “for good” ethos permeates everything PayMeNow does, from their financial education initiatives to their decision to make the app data-free. It’s a refreshing approach in a financial landscape often dominated by short-term gains and predatory practices.
As Pay Just Now’s portfolio of partners has expanded, so too has the complexity of managing consumer affordability. The company now relies on a sophisticated combination of declared income, predicted income from bureau reports, and algorithm-driven calculations to assess a customer’s ability to afford instalments.
Mark explains, “We don’t just rely on income; we look at various factors to determine affordability, ensuring that consumers can meet their payments. The first instalment at the point of purchase acts as a confidence booster, giving us a clear indication that the customer is serious about their commitment.”
This cautious approach has paid off, with Pay Just Now maintaining a default rate of under 2%, a stark contrast to South Africa’s unsecured credit market, where defaults can soar to the mid-40% range. Mark attributes this success to the platform’s clear, interest-free model and transparent communication with users.
One of the key challenges South African retailers face is the increasing pressure from global players like Shein and Temu, whose aggressive pricing models threaten local businesses. Mark emphasises that while global competition is inevitable, there’s a need to support local retailers, particularly small and medium-sized enterprises (SMEs), to ensure their survival.
“The future of retail isn’t just about the big players; it’s about helping entrepreneurs and small businesses stay competitive,” Mark says. “Pay Just Now’s data can help these retailers better understand their customers and offer tailored services that global giants can’t replicate.”
In this race to zero—where marketing budgets are stretched thin, and conversion rates plummet—Pay Just Now provides local retailers with actionable insights to remain relevant in a challenging market.
Mark leaves us with an inspiring vision for the future. He sees a world where Pay Just Now evolves into a shopping destination of choice, empowering South African consumers to make informed, affordable purchases.
The platform’s ability to offer first-party data to merchants not only enhances competitiveness but also ensures that South African retailers can weather the storm of global competition. By supporting local businesses and offering flexible, interest-free payment solutions, Pay Just Now is helping to shape a more inclusive and sustainable retail ecosystem.
PayJustNow is a ‘buy now, pay later’ payment solution that allows customers to split their purchases into three interest-free instalments. Customers pay a third of the amount upfront and then two further instalments every month. It aims to make budgeting easier without the need for traditional credit.
No, PayJustNow does not charge interest or hidden fees for the use of its service. As long as payments are made on time, customers only pay the purchase price divided into three instalments.
Signing up for PayJustNow is quick and easy. You can register through their website or when selecting PayJustNow as a payment option at checkout. You will need to provide personal and payment information to complete the registration process.
Yes, PayJustNow takes security seriously and uses advanced encryption and security protocols to protect your personal and payment information. They comply with industry standards to ensure that customer data is kept safe.
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