Weaver Fintech, the owner of HomeChoice, has flagged rising competition in South Africa’s fast-growing buy now, pay later (BNPL) market, saying that a wave of new entrants could squeeze margins and slow growth.
In its latest annual report, the group said it operates in a “highly competitive and fast-evolving” fintech environment, with both local and international players targeting the BNPL segment — particularly with interest-free products that are gaining traction among younger consumers.
“Gen Z and Millennials are demonstrating an increased preference for interest-free payment products,” the company said.
The concern comes as competition in the sector heats up, with payments infrastructure firm Stitch announcing this week that it has entered the BNPL market. The company said its product is already live with hundreds of merchants across South Africa, and allows customers to split purchases into flexible instalments ranging from two to six payments.
Stitch’s offering also promises full settlement to merchants within 24 hours and the ability for businesses to customise how BNPL appears at checkout, and features aimed at improving both cash flow and customer conversion.
Weaver said the influx of new players, including non-bank businesses such as retailers and insurers, as well as digital-only banks, could affect its ability to acquire customers and maintain market share.
“Increased competition from both local and international entrants may erode market share, constrain growth opportunities and place pressure on margins,” the group said.
Nonetheless, Weaver is doubling down on its ecosystem-led strategy, which uses BNPL as a gateway to attract customers and then cross-sell additional financial products.
Chair Shirley Maltz said the group’s growth strategy is centred on expanding its digital ecosystem, targeting a specific consumer base, and increasing merchant partnerships.
The annual report says that the group’s growth strategy rests on four main pillars, including strengthening its ecosystem by boosting engagement with tech‑savvy, urban African women, expanding further into fast‑growing digital payments and credit, especially buy‑now‑pay‑later and digital wallets, increasing the number of merchants on its platforms, and improving user experience to drive higher customer conversion.
CEO Sean Wibberley said BNPL plays a central role in driving customer acquisition and long-term value within the business.
“Our strategy is centred on building a single, unified digital destination that brings together shopping and financial services in a way that genuinely improves how customers live and transact. We use payments, particularly BNPL, as the entry point. It allows us to acquire customers virally at scale and at low cost,” he said.
The company’s results for the 2025 financial year reflect the growing importance of BNPL within its operations. Its payments division was the fastest-growing segment, with gross merchant value increasing 80% to R7.1bn. Products such as Payin-3 and PayStretch (Pay-in-12) are driving both customer acquisition and higher average revenue per user.
Weaver said BNPL’s rapid uptake has significantly expanded its ecosystem, creating opportunities to cross-sell lending, insurance and other financial services. Customers who take up multiple products generate substantially higher revenue, underscoring the group’s strategy of deepening engagement beyond a single offering.
At the same time, the company is investing in technology and partnerships to scale its reach. Its customer acquisition model is increasingly driven by application programming interface integrations with digital affiliates, allowing for personalised product offerings and higher conversion rates. The FinChoice MobiMoney digital wallet also serves as a key entry point for loan customers.
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