Cashless Surge: South Africa’s Card Payments Set to Hit R2.9 Trillion by 2025

South Africa is fast embracing a cashless future. The country’s card payments market is projected to soar to R2.9 trillion by 2025, according to new data from GlobalData, reflecting a sharp pivot toward digital finance and everyday convenience.

The latest Payment Cards Analytics report from GlobalData highlights a significant shift in the way South Africans pay, with card transactions growing by 10.3% in 2024, reaching R2.7 trillion. This upward trend reflects rising consumer confidence in digital transactions, coupled with better access to banking services and improved payment infrastructure.

“The South African payment landscape is evolving rapidly,” said Yasaswini Pujitha, Banking and Payments Analyst at GlobalData. “The rise in banking population, contactless payment adoption, and tech-forward banking services are reshaping consumer habits.”

Debit Cards Lead the Charge

In 2024, debit cards made up 74% of the total value of card payments in South Africa. This is largely thanks to their widespread use for daily, low-value purchases and growing accessibility for consumers entering the banking system for the first time.

Meanwhile, credit and charge cards hold the remaining 26%, a segment driven by perks like cashback rewards, loyalty points, and exclusive discounts—especially attractive to South Africa’s rising middle class and younger professionals.

Contactless Payments Gain Momentum

The convenience of tap-and-go payments is transforming how South Africans shop, commute, and manage money. According to a GlobalData 2024 survey, over 68% of South Africans now have access to a contactless card—and they’re actively using it.

Even the transport sector is going digital. The South African National Roads Agency (SANRAL) has begun a nationwide rollout of contactless toll plaza systems. From 1 December 2024, magstripe card payments will begin to be phased out, with a full switch to contactless systems by 31 May 2025.

Fintech Players Fuel Competitive Growth

Traditional banking is being reimagined by digital-first institutions such as Discovery Bank, TymeBank, and Bank Zero. These fintech players are not only expanding access to financial services but also pushing the entire industry toward faster, more secure, and more user-friendly solutions.

With their tech-savvy platforms, low fees, and user-centric features, these banks are helping South Africans transact with greater confidence and control.

A High Usage Nation

GlobalData’s research also shows that the average South African cardholder made 118.1 transactions in 2024—far outpacing countries like Nigeria (51), Egypt (24.2), Morocco (10.9), and Kenya (5.3). This points to a deep cultural shift toward card usage and away from cash.

Outlook: From R2.9 Trillion to R3.8 Trillion

The future looks bright. Analysts project that the South African card payment market will grow at a compound annual growth rate (CAGR) of 6.7% from 2025 to 2029, eventually hitting R3.8 trillion.

As more people enter the formal banking sector, and as contactless and mobile payments become even more widespread, South Africa’s payment ecosystem is set to become one of the most dynamic in Africa.

“The market’s growth is underpinned by digital transformation, fintech innovation, and infrastructure development,” concludes Pujitha.

South Africa is quickly moving toward a future where card and digital payments are the norm. The R2.9 trillion milestone is not just a number—it’s a sign of economic inclusion, modern convenience, and the country’s readiness to embrace smarter ways to pay.

{Source: IOL}

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