Pick n Pay has become the latest retailer to allow consumers to buy products on credit using the increasingly popular “buy now, pay later” (BNPL) model.

The retailer will select products – they include smartphones and TVs – available on the BNPL basis, it said in a statement on Thursday.

The offering, called PayJustNow, allows purchasers to split repayments into three instalments through a “completely digital application process”. There are no fees and interest is not levied, provided the repayments are made on time.

Initially available at Pick n Pay Hypermarkets, product categories available with the BNPL service include the electronics, home appliances, mobile devices and other “high-ticket items”.

Here’s how it works: customers scan a QR code, adding the desired item to their in-app transaction basket. The application process takes less than 10 minutes to approve. Qualifying customers receive a code generated by the PayJustNow app, allowing them to purchase the item at the till within 15 minutes.

“Customers will pay 34% of the total payment upfront, with the remaining two payments of 33% each aligned with their subsequent salary dates,” the retailer said.

BNPL has been described as “similar to a credit card but without the hassle of an application process, card-swiping infrastructure, and separate limits for purchases and cash withdrawals”.

Some retail stores in South Africa are going cashless

In addition to PayJustNow, Pick n Pay offers TymeBank’s MoreTyme to help customers manage their spending. To cater for customers seeking to finance various large-ticket items, the retailer also recently introduced RCS Finance. This offers a loan of up to R250 000 with up to 60-month repayment terms for purchases on a large, single transaction. – © 2023 NewsCentral Media