Shopping for essential items doesn't always mean paying the full amount upfront. Shop now, pay later allows eligible consumers to buy goods immediately and repay the cost over time according to an agreed credit arrangement. In South Africa, many shop now, pay later products are regulated under the National Credit Act (NCA) and offered by registered credit providers that are required to assess whether customers can afford the credit before it is granted.
One example is the RCS Store Card, a revolving credit facility that gives approved customers access to thousands of participating retailers across South Africa. Understanding how shop now, pay later works, how affordability assessments are conducted and what your responsibilities are as a borrower can help you make informed financial decisions.
What is shop now and pay later?
Shop now, pay later is a way of purchasing goods today and paying for them over time instead of making one upfront payment. The exact repayment model depends on the provider. Some products divide a purchase into a fixed number of repayments, while others operate as revolving credit facilities that allow customers to continue using available credit as they repay their balance.
In South Africa, credit providers offering regulated credit products must comply with the National Credit Act. This legislation is designed to promote responsible lending, protect consumers and reduce the risk of reckless credit.
How does shop now and pay later work?
Most shop now, pay later products follow a similar process, although the repayment terms differ between providers.
The typical journey looks like this:
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Choose the product or products you would like to buy.
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Apply for credit if you do not already have an approved account.
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The credit provider completes identity verification and an affordability assessment.
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If your application is approved, you can complete your purchase using the available credit.
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You repay the outstanding balance according to your credit agreement.
Before accepting any credit agreement, take the time to understand the repayment schedule, fees, interest (where applicable) and the total cost of borrowing.
What is an affordability assessment?
An affordability assessment is a review of your financial position to determine whether you can reasonably afford additional credit. Registered credit providers must consider factors such as:
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Your income.
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Existing credit commitments.
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Essential monthly living expenses.
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Disposable income.
The purpose is to ensure that consumers are not granted credit that they are unlikely to be able to repay, supporting responsible lending practices. Affordability assessments are an important part of South Africa's consumer credit framework and are required under the National Credit Act.
How does the RCS Store Card fit into ‘shop now and pay later’?
The RCS Store Card is a regulated revolving credit facility that allows approved customers to shop now and repay over time. Unlike a once-off personal loan, a revolving credit facility provides an approved credit limit that becomes available again as repayments are made, provided the account remains in good standing and within its approved limit.
Approved customers can use the RCS Store Card at thousands of participating retailers across South Africa, including many online stores that accept the card as a payment method. The RCS Store Card may be suitable for a variety of purchases, including:
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Fashion and clothing.
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Furniture.
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Home appliances.
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Electronics.
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Sporting goods.
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Health and beauty products.
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Baby and children's essentials.
As with any regulated credit product, approval is subject to an affordability assessment and the terms and conditions of the credit agreement.
Who can apply for an RCS Store Card?
Eligibility depends on whether you meet RCS's application requirements and affordability criteria.
Applicants generally need to:
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Be at least 18 years old.
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Have a valid South African identity document or qualifying identification.
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Earn a regular income of at least R2000 per month.
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Successfully complete the affordability assessment.
Each application is assessed individually, and meeting the basic requirements does not guarantee approval.
Is shop now and pay later the same as a credit card?
Not always. Although both allow consumers to purchase on credit, they are not identical products. Many shop now, pay later products are designed around a specific repayment structure for individual purchases in the retail space.
The RCS Store Card operates as a revolving credit facility. This means approved customers have access to a credit limit that can continue to be used as available credit is restored through repayments.
Because different products work differently, consumers should always read the credit agreement carefully before making a purchase.
What are the benefits of shop now and pay later?
When used responsibly, shop now, pay later products may offer several advantages.
These can include:
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The ability to purchase essential items without paying the full amount upfront.
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Greater flexibility when managing larger purchases.
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Access to participating retailers through an approved credit facility.
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A structured repayment plan based on the terms of the credit agreement.
The suitability of any credit product depends on your individual financial circumstances.
What should you consider before applying?
Before applying for any shop now, pay later product, consider the following:
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Can you comfortably afford the monthly repayments?
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Do you understand the fees, interest and repayment terms?
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Are you borrowing for something you genuinely need?
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Have you read the credit agreement carefully?
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Does the purchase fit within your monthly budget?
Responsible borrowing starts with understanding both the benefits and the obligations that come with using credit.
Important takeaways
Shop now, pay later allows eligible consumers to spread the cost of purchases over time instead of paying the full amount upfront. In South Africa, regulated credit products are governed by the National Credit Act, which requires registered credit providers to lend responsibly and complete affordability assessments before granting credit.
The RCS Store Card is one example of a regulated shop now, pay later solution. It provides approved customers with access to a revolving credit facility that can be used at thousands of participating retailers, subject to approval and the terms of the credit agreement.
Frequently asked questions
Is shop now and pay later available in South Africa?
Yes. South African consumers can access a range of regulated shop now, pay later products offered by registered credit providers, subject to approval and affordability assessments.
Can I apply for an RCS Store Card online?
RCS offers online application options for eligible customers. Applications remain subject to affordability assessments and the standard approval process.
Can I use my RCS Store Card at different retailers?
Yes. The RCS Store Card can be used at thousands of participating partner retailers across South Africa.
Why do credit providers perform affordability assessments?
Affordability assessments help determine whether a consumer can reasonably afford additional credit and are required under South Africa's National Credit Act.
Is shop now and pay later suitable for every purchase?
Consumers should carefully consider whether repayments fit comfortably within their monthly budget before using any form of credit.
