South African Buy Now, Pay Later (BNPL) platform Happy Pay has raised $5 million in a seed funding round to accelerate the growth of what it describes as Africa’s first ad-subsidised payments network.
The round was led by Partech, with participation from Futuregrowth Asset Management, 4Di Capital, E4EAfrica, Equitable Ventures, Felix Strategic Investments, Summit.Deals, and The University Technology Fund.
The newly raised capital will be deployed to expand Happy Pay’s merchant network, scale its presence across both digital and physical retail channels, and further develop its AI-powered advertising and recommendation engine.
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Commenting on the investment, Matthieu Marchand noted that after evaluating BNPL companies across Africa, Europe, and the United States, Partech believes Happy Pay’s model offers a compelling value proposition.
According to him, BNPL solutions are most effective when they provide real affordability for consumers while enabling merchants to boost conversions, grow their customer base, build loyalty, and reduce acquisition costs.
Happy Pay’s Co-founder and CEO, Wesley Billet, described the milestone as a significant step in the company’s journey. He emphasized that Happy Pay is not merely a BNPL checkout solution but a broader commerce network designed to eliminate interest costs for consumers.
He wrote,
“Super excited to announce Happy Pay’s $5M Seed Round, led by Partech! Happy Pay is far more than a Buy Now Pay Later checkout button. We’re building Africa’s first ad-subsidised payments network, an ecosystem spanning online and physical instalment payments connected by an intelligent performance ads engine that delivers cost-free finance for consumers and a new growth channel for retailers.”
South Africa has emerged as one of Africa’s most dynamic markets for Buy Now, Pay Later (BNPL), driven by a convergence of digital adoption, shifting consumer behavior, and the rapid expansion of e-commerce.
As financial inclusion and alternative credit models gain traction, BNPL is increasingly positioned as a critical component of the country’s evolving fintech ecosystem. Projections indicate that the sector will expand to around $1.3 billion by 2030, growing at a CAGR of about 9.8% during the forecast period.
Other estimates suggest even more aggressive expansion, with long-term forecasts pointing to growth rates exceeding 20% annually through the early 2030s, underscoring the sector’s scalability and investor appeal.
Founded in 2023, Happy Pay enables brands and merchants to subsidise the cost of financing by investing in targeted advertising at the point of purchase, creating a system where consumers access interest-free payments while merchants unlock a new growth channel.
The platform offers shoppers the ability to split payments across two pay cycles without interest or upfront deposits. The company says this model helps increase merchants’ average basket sizes and improves customer conversion rates.
Happy Pay operates in a rapidly growing market. With the average credit-active South African spending approximately 28% of their take-home income on debt repayments, the startup is positioning its offering as a more affordable alternative to traditional credit.
Since launch, the company has grown to over 600,000 users, representing a 900% increase, driven largely by younger consumers. It competes with other players in the space such as PayJustNow, Payflex, and Float.
By integrating payments, retail, and advertising into a single ecosystem, Happy Pay is aiming to redefine how credit is delivered and monetised across Africa’s retail landscape.