The Partnership between Happy Pay and Peach Payments to Expand BNPL Services in South Africa
Happy Pay, a South African fintech company, has recently announced a strategic partnership with Peach Payments, an online payment platform, to enhance Buy Now, Pay Later (BNPL) services in the country. This collaboration aims to provide thousands of online merchants using Peach Payments with the opportunity to offer customers interest-free and deposit-free payment options through Happy Pay.
The focus of this partnership is on South Africa’s rapidly growing e-commerce sector, where flexible payment methods are playing a significant role in shaping consumer behavior. Happy Pay’s installment solution is designed to provide access to essential and lifestyle purchases for consumers who may not qualify for traditional lending or are averse to credit.
One of the key features that sets Happy Pay apart is its affordability-based approval system, which helps users avoid over-indebtedness. Instead of relying solely on credit scores, the platform utilizes an algorithm to assess whether consumers can realistically afford the purchase. This model, described as “zero-cost credit,” does not involve hidden fees or interest charges for the consumer.
Peach Payments, a prominent payment gateway in South Africa, facilitates transactions for a wide range of online platforms, from small and medium enterprises to large corporations. The integration of Happy Pay with Peach Payments streamlines the BNPL option for merchants already utilizing the platform.
In addition to the partnership with Peach Payments, Happy Pay recently concluded a $1.8 million pre-seed funding round, with support from investors such as E4E Africa and 4Di Capital. This funding will further strengthen Happy Pay’s position in the competitive BNPL market.
With the BNPL sector gaining momentum, this partnership positions Happy Pay to compete with established players like Float, Payflex, and PayJustNow. However, its unique interest-free and deposit-free model, coupled with expanded merchant access through Peach Payments, could position Happy Pay as a standout player in South Africa’s digital payments landscape.
