South Africa Cards and Payments – Opportunities and Risks to 2025

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

South Africa Cards And Payments Market Overview

South Africa cards and payments market size was valued at $90.7 billion in 2021. The market is expected to grow at a CAGR of more than 7% during the period 2021-2035.

The South Africa cards and payments market research report provides detailed analysis of market trends in the South Africa cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, credit transfers, cards, and cheques during the review-period. The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period. It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.

South Africa cards and payments market outlook

South Africa cards and payments market outlook

For more insights on the report, download a free sample

What are the market dynamics in the South Africa cards and payments market?

While South Africa remains a cash-driven society – with consumers preferring to use cash for day-to-day transactions, the country’s payments market is steadily shifting towards electronic payments. There has been significant progress in the adoption of card-based payments, which recorded a compound annual growth rate over 2017–21e in terms of transaction volume. This can be attributed to the combined efforts of the government and financial institutions to boost financial awareness through the launch of financial literacy programs, the provision of basic bank accounts, and the expansion of payment card acceptance among retailers.

Which are the key segments in the South Africa cards and payments market?

The key segments in the South Africa cards and payments market are card-based payment, merchant acquiring, e-commerce payments, in-store payments, buy now pay later, mobile payments, P2P payments, bill payments, alternative payments.

Card-based payment in the South Africa cards and payments market

Debit cards remain the most widely used payment card type among South Africans, accounting for the largest share in terms of both number of cards in circulation and transaction value during 2017–21e. This was supported by the country’s high banked population. Debit cards will continue to lead the South African payment card market over 2021e–25f, supported by the growing migration of low-value cash payments to payment cards, the emergence of digital-only banks, and the increasing preference for contactless payments.

Merchant acquiring in the South Africa cards and payments market

The acquiring and processing environment in South Africa is dominated by banks, with Absa leading the way. Absa offers a wide range of card acceptance solutions, including physical POS and ecommerce acquiring solutions. To encourage merchant acceptance, Absa also offers a low-cost POS device called SmartPay specifically for SMEs. The device can accept magnetic stripe, chip and PIN, and contactless cards.

E-commerce payments in the South Africa cards and payments market

South African ecommerce spending is led by food and drink, followed by accommodation and clothing and footwear. Electrical goods, travel, and health and beauty also account for notable shares in terms of transaction value.

In-store payments in the South Africa cards and payments market

Essential items such as food and drink, motor fuel, and clothing and footwear lead in-store purchases in South Africa, collectively accounting for nearly half of total in-store transaction value. In-store payments were badly affected by the COVID-19 pandemic, which discouraged consumers from visiting stores out of fear of contracting the virus. Meanwhile, lockdown restrictions resulted in the closure of non-essential stores. But as the government eased restrictions owing to a drop in the number of cases, in-store purchases have been on the path to recovery.

Buy now pay later payments in the South Africa cards and payments market

Buy now pay later payments are gaining prominence among consumers in South Africa, with a growing number of merchants, banks, and payment providers now offering this service. In September 2021, online payment gateway PayFast announced the addition of MoreTyme (a buy now, pay later feature launched by digital-only bank TymeBank) as a payment option on its platform. At checkout, consumers select MoreTyme and scan the displayed QR code using their TymeBank app.

Mobile payments in the South Africa cards and payments market

Consumers mostly use their mobile wallets for accommodation, followed by food and drink and clothing and footwear. In addition to local mobile wallets such as SnapScan and Zapper, international payment solutions such as Samsung Pay are popular.

P2P payments in the South Africa cards and payments market

PayPal, mobile banking apps, and online bank transfers are the favored tools for both domestic and international P2P transfers.  Some of the country’s banks offer fund transfer services in association with money transfer services providers. Absa Bank allows its customers to access the Western Union transfer service via its mobile banking app to send and receive money.

Bill payments in the South Africa cards and payments market

Bank transfer is the preferred option for bill payments in South Africa. With the growing preference for mobile banking, Standard Bank incorporated the utility bill payment feature MyBills into its mobile banking app. Meanwhile, Absa Bank offers the walletdoc app, which notifies users of bill payments on the due date. Users can add Visa, Mastercard, and Diners Club cards to the wallet to make bill payments.

Alternative payments in the South Africa cards and payments market

Apple Pay, Samsung Pay, VodaPay, SnapScan are some of the alternative payments in the South Africa cards and payments market.

Which are the key payment instruments in the South Africa cards and payments market?

The key payment instruments in the cards and payments market in South Africa are cash, cards, credit transfers and direct debits. Cash is the largest payment instrument in the cards and payments market in South Africa in terms of volume.

South Africa cards and payments market, by payment instrument

South Africa cards and payments market, by payment instrument

For more payment instrument insights on the report, download a free sample

Which are the key players in the cards and payments market in South Africa?

The key players in the cards and payments market in South Africa are Absa Bank, FNB, Standard Bank, Nedbank, Capitec Bank, Mercantile Bank, TymeBank, American Express, Diners Club, Visa, and Mastercard.

Market report overview

Market size $90.7 billion
CAGR % (2021-2035) >7%
Key segments Card-Based Payment, E-Commerce Payments, Merchant Acquiring, In-Store Payments, Buy Now Pay Later, Mobile Payments, P2P Payments, Bill Payments, Alternative Payments
Key payment instruments Cash, Cards, Credit Transfers, and Direct Debits
Key companies Absa Bank, FNB, Standard Bank, Nedbank, Capitec Bank, Mercantile Bank, TymeBank, American Express, Diners Club, Visa, and Mastercard

Scope

The report provides top-level market analysis, information and insights into the South African cards and payments industry, including –

  • Current and forecast values for each market in the South African cards and payments industry, including debit, credit and charge cards.
  • Detailed insights into payment instruments including cash, cards, credit transfers, and direct debits. It also, includes an overview of the country’s key alternative payment instruments.
  • Ecommerce market analysis.
  • Analysis of various market drivers and regulations governing the South African cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
  • Comprehensive analysis of consumer attitudes and buying preferences for cards.
  • The competitive landscape of the South African cards and payments industry.

Reasons to Buy

  • Make strategic business decisions, using top-level historic and forecast market data, related to the South African cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the South African cards and payments industry.
  • Assess the competitive dynamics in the South African cards and payments industry.
  • Gain insights into marketing strategies used for various card types in South Africa.
  • Gain insights into key regulations governing the South African cards and payments industry.

Absa Bank
FNB
Standard Bank
Nedbank
Capitec Bank
Mercantile Bank
TymeBank
American Express
Diners Club
Visa
Mastercard
Zapper
SnapScan
Click to Pay
PayPal
Cell Pay Point
Apple Pay
Samsung Pay
VodaPay
FlickPay
Huawei Pay

Table of Contents

Table of Contents

Market Overview

Payment Instruments

Card-Based Payments

Merchant Acquiring

Ecommerce Payments

In-Store Payments

Buy Now Pay Later

Mobile Payments

P2P Payments

Bill Payments

Alternative Payments

Payment Innovations

Job Analysis

Payment Infrastructure and Regulation

Appendix

Frequently asked questions

South Africa Cards and Payments – Opportunities and Risks to 2025 standard reports
Currency USD
$2,750

Can be used by individual purchaser only

$8,250

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

South Africa Cards and Payments – Opportunities and Risks to 2025 was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS

Related reports

View more Payments reports
Financial Services
New
Wealth Management Trends and Themes in 2024
$5,250 | May 2024
Financial Services
New
Peru Insurance Industry - Key Trends and Opportunities to 2028
$1,450 | May 2024
Financial Services
New
Broker Distribution Insight 2024 - Which Insurers Lead the Way?
$1,995 | June 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at South Africa Cards and Payments – Opportunities and Risks to 2025 in real time.

  • Access a live South Africa Cards and Payments – Opportunities and Risks to 2025 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.