Happy Pay raises $5 million to scale ad-supported BNPL across South Africa

Happy Pay, a South African buy-now-pay-later (BNPL) startup, has raised a $5 million seed round to scale what it describes as Africa’s first ad-supported payments network. 

The funding will be used to deepen merchant partnerships, expand distribution across online and offline channels, and further develop its AI-powered recommendations and advertising engine.

Partech led the round, with participation from Futuregrowth Asset Management, 4Di Capital, E4E Africa, Equitable Ventures, and Felix Strategic Investments.

“Our mission is simple, to make cash-flow management free for consumers,” said Wesley Billett, co-founder and CEO of Happy Pay. “If we can connect the right product to the right person at the right moment and remove payment friction, commerce itself can fund the flexibility.”

South Africa’s BNPL market is expanding quickly, with adoption spreading across retail and e-commerce. A Stitch digital payments survey found that 56.5% of South Africans have used BNPL for online purchases, while 41.1% have used it for travel bookings, pointing to broad familiarity with the model. Transaction values are also rising, reaching an estimated $815 million in 2025, up from roughly $717 million in 2024.

As living costs increase, BNPL is becoming a cash-flow management tool for consumers, allowing them to split payments for essentials and discretionary spending. Happy Pay is positioning itself within this shift, targeting users who are looking for short-term credit alternatives outside traditional banking rails.

Founded in 2021 by Wesley Billett, Patrick Postrehovsky, and Mark Geary, Happy Pay offers interest-free installment payments for online shoppers and has grown to more than 600,000 registered users. Its core proposition is an ad-subsidised model that removes interest and fees for consumers by shifting costs to merchants and brands that benefit from increased sales.

At the centre of this model is an AI-driven engine that matches merchants with high-intent shoppers in real time, surfacing offers within the Happy Pay app and partner channels. Merchants only pay when a transaction is completed.

“Credit has previously been monetised through the consumer,” said Billett. “We’re proving it can be monetised through value creation instead. When merchants grow, consumers shouldn’t have to go into debt to make that happen.”

The company generates revenue through merchant funding. Retailers pay for access to flexible payments combined with targeted advertising, which drives higher conversion rates, larger basket sizes, and customer acquisition.

“We’ve looked at most Buy Now Pay Later companies across Africa, Europe and the US, and we’re clear that the best model for creating true value is the one Happy Pay has built. BNPL only makes sense when it delivers real affordability for consumers while helping merchants improve conversion, grow their client base, build loyalty, and reduce acquisition costs,” said Matthieu Marchand, Principal at Partech.