Introducing Stitch Buy Now Pay Later

Introducing Stitch Buy Now Pay Later (BNPL). We're excited to bring one of South Africa's fastest-growing payments methods to our enterprise and Express merchants, built on the same reliable Stitch payments platform they already trust. Now South African merchants can offer customers the ability to split purchases across flexible instalments, and Stitch will settle the full transaction value within 24 hours.

For enterprise retailers and e-commerce platforms, this is a meaningful addition to the payments stack. The data is clear: BNPL consistently drives higher basket values and captures purchases that would otherwise have been abandoned. And for a growing segment of South African shoppers - particularly mid-to-high income earners buying higher-value items - it's quickly becoming an expected option at checkout.

Why BNPL is gaining traction in South Africa

New data from our upcoming 2026 Consumer Report shows that South African consumers are more willing to try new payment methods than at any point in recent history, and BNPL is increasingly top of mind. 71% of surveyed credit-active shoppers indicated that they use BNPL with some frequency. 38.9% used it for the first time in the last year.

What makes BNPL distinctive is where it performs. Unlike one-click methods such as Apple Pay or Capitec Pay, which tend to accelerate transactions, BNPL enables transactions that might not have happened at all. Uptake is strongest among mid-to-high income earners making considered, often higher-value purchases such as electronics and household goods. This means BNPL often functions as a revenue unlock rather than simply a convenience improvement.

Merchants offering BNPL see transactions with higher cart values and lower abandonment rates at checkout for those specific purchase types. When a customer reaches a R3,000 item and hesitates, for example, the option to pay in three or four instalments can make the difference between a sale and an abandoned cart.

Customisable BNPL solution: how Stitch BNPL works

Customers can pay for qualifying purchases over 2-6 flexible, interest-free instalments, depending on their credit score. The customer creates an account, completes KYC and can be approved for a credit limit at checkout, all without leaving the merchant's site. Once a purchase is made, Stitch settles the full transaction value to the merchant within 24 hours.

This settlement model is noteworthy because the merchant receives full payment immediately, with no exposure to customer repayment risk. Stitch handles the instalment relationship with the customer. However, enterprise merchants can also gain visibility into customers' payback behaviour, enabling a more complete customer profile for further tailored experiences.

Our enterprise solution can be further customised to better meet merchant needs. Stitch BNPL can integrate directly with a merchant's existing online payments stack and can be configured to display selectively. For example, BNPL can be displayed only for transactions above a defined cart value, or as a fallback option when a payment fails due to insufficient funds. This targeted placement protects margin attribution while maximising the revenue benefit.

While all Stitch BNPL orders and repayments can be managed by customers via the Stitch BNPL dashboard, enterprise merchants can also offer customers the ability to view and manage their outstanding BNPL orders when logging into the merchant site.

Stitch Express merchants can also customise their BNPL widget design and placement within their storefront, whether they're operating on Shopify, WooCommerce or a custom e-commerce site.

Where BNPL fits in your payments strategy

BNPL works best when it is positioned contextually, not universally. Offering it across every transaction can dilute its impact and introduce unnecessary complexity. Instead, we recommend surfacing it in contexts where purchase hesitation is most likely: higher-value items, first-time shoppers and categories with longer decision cycles such as furniture, electronics and fashion.

The option to deploy BNPL as a fallback when a primary payment method fails is particularly effective. Rather than losing the transaction entirely, merchants can offer the customer a path forward. For platforms managing high-value or considered purchases, this recovery mechanism alone can justify the integration.

However, it's worth noting that customers are increasingly using BNPL for everyday purchases, including groceries, as a way of better managing their budget. Stitch BNPL is available now for eligible enterprise and Express merchants. Get in touch with the team to discuss whether it is the right fit for your business and how to enable it alongside your existing payment methods.

What comes next

Over the next few weeks, we'll be publishing more detail on the BNPL opportunity in South Africa, including how it compares to traditional lay-buy models, and what the consumer data says about when and why shoppers reach for instalment options.

FAQs

What is Buy Now Pay Later (BNPL)?

Buy Now Pay Later is a payment method that allows customers to split a purchase into smaller, interest-free instalments paid over time, rather than paying the full amount upfront. The merchant receives the full transaction value immediately - Stitch settles within 24 hours - while the customer repays in two, three, four or six instalments.

Does the merchant carry repayment risk with BNPL?

No. Stitch settles the full transaction value to the merchant within 24 hours of the purchase. Stitch manages the customer instalment relationship and any associated repayment risk.

What types of purchases benefit most from BNPL?

BNPL performs strongest on higher-value purchases where upfront cost is a barrier, particularly in categories such as fashion, electronics, furniture and home goods. However, it is also increasingly being used for everyday transactions, such as groceries.

Can I configure when BNPL is shown at checkout?

Yes. Stitch BNPL can be configured to display selectively - for transactions above a specified value, for specific product categories, or as a fallback option when another payment method fails.

How does BNPL affect conversion rates?

Merchants offering BNPL typically see higher average cart values and reduced abandonment on high-value items, as the instalment option removes the upfront cost barrier for purchase-ready shoppers.