Happy Pay partners with Peach Payments to expand buy-now-pay-later in South Africa

South African fintech company Happy Pay has partnered with online payment gateway Peach Payments to expand its buy-now-pay-later (BNPL) service in the country.

The partnership will enable Peach Payments’ merchants to integrate Happy Pay’s interest-free and deposit-free instalment options at checkout.

“As the only zero-deposit BNPL provider integrated with Peach Payments, Happy Pay eliminates upfront costs for shoppers while driving higher conversions and increased basket sizes for merchants,” said Happy Pay.

“More importantly, Happy Pay is committed to responsible lending, using affordability-based approvals to ensure customers have access to ‘zero-cost credit’ – a model designed to provide financial flexibility without hidden fees or excessive debt.”

The company stated that its partnership with Peach Payments will benefit all types of businesses, from SMEs to enterprise-level merchants, by enabling “significant uplifts” in average order value and customer spending power.

Happy Pay expansion

Happy Pay’s partnership with Peach Payments follows the company recently securing $1.8 million (R32 million) in pre-seed funding.

The funding was secured from several notable venture capital investment firms, including co-lead investors E4E Africa and 4Di Capital, with participation from Launch Africa, Equitable Ventures, Felix Strategic Investment, and US-based Gaingels.

Happy Pay also won the People’s Choice award at the South African Startup Awards, hosted by Startup Club ZA in Cape Town in November 2024.

The company said the surge in interest and growth of the platform is largely driven by Millennials and Gen Zs who are favouring BNPL options over traditional credit cards.