Store Cards vs Buy-Now-Pay-Later: Are They Really Worth It?

Are Store Cards and Buy-Now-Pay-Later Options Worth It?

In today’s fast-paced, cash-strapped world, many South Africans are turning to store cards and buy-now-pay-later (BNPL) options to stretch their budgets. Whether it’s for groceries, clothing, or big-ticket items like furniture and appliances, these options promise convenience and instant access. But the real question is: are they worth it?

Let’s break it down.

What Are Store Cards and BNPL Options?

1. Store Cards: These are credit cards linked to a specific retailer, allowing you to buy now and pay later, often with loyalty rewards or discounts. Think of cards from clothing retailers, grocery chains, or electronics stores.
2. Buy-Now-Pay-Later (BNPL): Services like Payflex, MoreTyme, and others allow you to split payments into interest-free installments. It feels easier on the wallet because you pay a fraction upfront, with the rest spread out over weeks or months.

Both options are marketed as budget-friendly. But what’s the catch?

The Pros of Store Cards and BNPL

✅ Immediate Access – You can take home what you need right away, even if your cash flow is tight.
✅ Interest-Free Periods – Many store cards offer interest-free days (if you pay on time), while BNPL options usually come with no interest at all.
✅ Build a Credit Profile – Responsible use of store cards can help improve your credit score.
✅ Promotions & Rewards – Store cards often come with exclusive discounts, loyalty points, or cashback deals.

The Cons You Need to Watch Out For

❌ High Interest Rates – Store cards can charge interest rates much higher than traditional credit cards if you miss the repayment window.
❌ Hidden Fees – Late payment penalties, account maintenance fees, or administrative costs can add up.
❌ Debt Trap Risk – The convenience of BNPL and store cards can lead to overspending and juggling multiple debts.
❌ Credit Score Damage – Missed payments negatively affect your credit record, making it harder to access future credit.

How to Use Store Cards and BNPL Wisely

• Know Your Budget – Before swiping or signing up, ask yourself: Can I afford the monthly payments without stress?
• Always Pay On Time – Late fees and interest wipe out any “savings” from discounts or promotions.
• Don’t Overcommit – Stick to one or two cards or BNPL services. Too many accounts can get overwhelming.
• Use Them for Needs, Not Wants – Essentials like groceries or emergency items may make sense. Luxury splurges? Maybe not.
• Check the Fine Print – Understand interest rates, fees, and repayment terms before signing up.

Are They Worth It?

The short answer: It depends on how disciplined you are.

If you’re financially disciplined, pay on time, and stick to your budget, store cards and BNPL options can be helpful tools to manage cash flow, earn rewards, and build credit.

But if you tend to overspend or struggle with repayments, these products can quickly become debt traps that cost far more than they’re worth.

Final Thoughts

Store cards and buy-now-pay-later services aren’t “good” or “bad” on their own—it’s how you use them that matters. Used wisely, they can offer flexibility and rewards. Used carelessly, they can derail your financial goals.

So before signing up, pause and ask yourself: Is this purchase essential, and can I realistically repay it on time? If the answer is yes, go ahead. If not, it may be better to wait until you can afford it in cash.