BNPL and Over-indebtedness: Micro Finance SA Seeks Cooperation
Discover how BNPL schemes can lead to over-indebtedness and what Micro Finance South Africa proposes for proactive solutions.
November 25, 2025
Your Financial Questions Answered
Get clear answers on credit, consumer protection, and financial well-being.
What is MFSA's stance on BNPL?
MFSA is concerned about the rise of 'Buy Now, Pay Later' products and their potential to increase consumer debt without adequate oversight.
Are BNPL products regulated?
Currently, BNPL offerings are often outside the National Credit Act, leading to potential gaps in consumer protection and affordability checks.
What are the key concerns?
Concerns include unrecorded debt exposure, consumer protection gaps, and potential systemic risk to the financial system.
What is MFSA's proposed solution?
MFSA advocates for BNPL products to be included under the NCA, with clear rules for affordability, reporting, and disclosures, alongside an industry code.
What is the goal of the proposed code?
The aim is to balance innovation with responsibility, protect consumers, support retailers, and ensure financial health.
What international context exists?
Regulators in the UK, US, and Australia are already strengthening rules around BNPL due to rising defaults and consumer hardship.
