Cape Town startup HappyPay raises R86m to expand BNPL service

Happy Pay team | image supplied

The startup, which has more than 600,000 registered users, says it is building an ad-subsidised payments network that removes interest and fees from buy now, pay later (BNPL) transactions, shifting costs to merchants and brands.

“Our mission is simple, to make cash-flow management free for consumers,” says co-founder and CEO Wesley Billett.

Unlike traditional credit models that rely on interest or fees, Happy Pay generates revenue through merchant funding. The company says retailers pay for access to customers and increased sales driven by flexible payment options.

The platform uses an AI-driven engine to match products with consumers based on behavioural and transaction data, aiming to convert advertising spend directly into completed purchases rather than clicks or impressions.

Happy Pay positions its model as a broader commerce platform that combines payments, advertising and financing, rather than a standalone BNPL product.

In South Africa, where credit costs remain high, the company says demand for alternative payment options continues to grow.

“Our growth reflects a shift towards financial tools that offer real flexibility without the trap of revolving balances,” says Billett.

Partech principal Matthieu Marchand says the model aligns with changing expectations in consumer finance.

“BNPL only makes sense when it delivers real affordability for consumers while helping merchants improve conversion, grow their client base and reduce acquisition costs,” he says.

The company says the funding will be used to expand merchant partnerships, grow distribution and further develop its AI-driven platform.