For many young South Africans, the first step into credit no longer looks like a store account, credit card, or personal loan. It is increasingly digital, linked to a specific purchase, and built around smaller, more manageable commitments.
TransUnion’s latest research supports this shift. It found that buy now pay later (BNPL) has the youngest consumer profile of all consumption credit products, with 37% of BNPL users belonging to Gen Z. It also found that 16.5% of BNPL users are new to credit, while a further 19.7% are underserved consumers with limited credit histories.
This challenges the assumption that younger consumers are approaching credit recklessly. The data instead points to smaller commitments, clearer repayment periods, and products linked to specific purchases.
“The first credit experience for many young consumers is becoming more controlled and more intentional,” says Dean Hyde, Chief Operating Officer at PayJustNow. “Many are beginning with transaction-linked products that have clear repayment structures. Confidence is built through smaller, well-managed commitments.”
PayJustNow’s own data shows how this plays out. BNPL average basket size is around R1,500, indicating short-term, planned purchases. ‘Pay in 12’, PayJustNow’s retail credit product, is being used for larger planned purchases, with an average basket size around R2,500. Over the last 12 months, the average ‘Pay in 12’ basket size was 74.9% greater than the BNPL basket size.
Together, this suggests responsible experimentation with credit, where BNPL acts as an entry point for smaller, purchase-linked commitments, while Pay in 12 supports larger baskets in categories such as home, major appliances, furniture, and automotive.
Digital financial services platform, Finchoice, is seeing a similar shift. Its data shows that consumers aged 25 to 34, predominantly women, use MobiMoney, a short-term credit product with a three-month term, for immediate needs and emergencies. Six-month flexi-loan products are also popular among consumers in their 20s and 30s.
Richard Eberlein, Head of Customer Growth and Engagement at Finchoice, says younger consumers are becoming more deliberate about matching credit products to specific needs.
“Younger customers are not looking for one financial product to solve everything,” he says. “They want choices that fit where they are in life, whether that is a short-term gap, an immediate household need, or a larger planned expense. The important change is that they are not treating all credit the same.”
Hyde says the modern credit ladder should help young consumers progress responsibly, not push them into larger debt too quickly.
“Digital payment and credit products must be designed around affordability, transparency, and behaviour. When that happens, young consumers can build confidence through manageable commitments and participate more fully in the economy,” he concludes.
