South African buy now, pay later (BNPL) platform Happy Pay has publicly launched Happy Ads, an AI-powered performance media platform that only charges retailers when a campaign results in a sale.
Happy Pay provides zero-cost installment payments through its ad-subsidised payments network. Its platform connects merchants with high-intent shoppers, enabling consumers to split purchases into interest-free installments while helping retailers grow through performance-based customer acquisition, conversion, and basket expansion. The company raised a US$5 million seed round back in March.
Happy Ads lets brands promote products and offers to Happy Pay’s more than 800,000 registered users, as well as two million customers across its partner network. It generated more than ZAR100 million (US$6.1 million) in merchant sales during its pilot phase, delivering more than 268 million impressions and an average 20x return on ad spend. Happy Pay says a further six million users are set to join the network soon.
Unlike traditional digital advertising, where brands pay for impressions or clicks, Happy Ads works on a cost-per-acquisition model. Retailers set the commission they are willing to pay and are only charged when a campaign converts into a completed sale.
“Most digital advertising platforms sell attention and leave retailers hoping that attention eventually turns into revenue,” said Wesley Billett, co-founder and CEO of Happy Pay. “Happy Ads flips that model. If we don’t generate a sale, the merchant doesn’t pay.”
The platform combines product discovery, targeted distribution, payments and transaction-level attribution. An AI recommendation engine ranks products for each shopper based on their browsing, purchase history and interests, with every completed sale feeding back into the model. Shoppers can check out using Happy Pay’s interest-free instalments or any of the retailer’s existing payment methods.
“Buy Now Pay Later should be more than a payment button at checkout,” Billett said. “It creates one of the most powerful customer-acquisition flywheels in retail.”
Passionate about the vibrant tech startups scene in Africa, Tom can usually be found sniffing out the continent's most exciting new companies and entrepreneurs, funding rounds and any other developments within the growing ecosystem.