Many ways to pay in South Africa

South Africa is Africa’s largest economy in terms of GDP.¹ It ranks in the top 10 on the continent in both size and population as well. The scale of this country on Africa’s southern tip is truly breathtaking.

An intro to the “rainbow nation”

Visitors can fly into the cool temperatures of the Highveld in Johannesburg, and then travel on to the balmy beach cities of the Indian Ocean, including Durban and Gqeberha (Port Elizabeth). Cape Town, set between Table Mountain and the Atlantic Ocean, will be on the bucket lists of most tourists, including the legions of those inspired by the life and times of Nelson Mandela.

South Africa punches above its weight in garnering international recognition. It is justly famed for its tourist infrastructure, which includes outstanding natural attractions, wildlife, and food and beverage options, such as world-class wineries. Its sports teams and athletes are familiar to those who follow cricket, rugby, and golf, among others.

It Is a regional economic power due to its financial infrastructure, and its currency, the South African rand, underpins the Common Monetary Area (CMA), which includes some of its neighbors. It has a thriving services industry, has long been a leader in mining, and has a large agricultural sector that employs millions in its vast hinterland. 

It is also a country of great contrasts. While its founding story – post-apartheid in the early 1990s – as the modern “rainbow nation” is a model of truth and reconciliation, one can argue that it has struggled with certain questions in the more recent past. South Africa prizes innovation and has some of the finest tech companies on the continent, but it has well-documented issues with electric and network infrastructure, so much so that tourists are advised to download the local power provider’s app before they visit to be advised of “load-shedding” schedules.² Its urban spaces are home to high-priced enclaves and townships that range from middle-class areas to settlements. 

“Our payments landscape reflects all these realities,” stated Jan Niezen, Managing Director of G+D ePayments Southern Africa. “As South Africans, we prize two things: resilience and doing things ourselves. It’s what we’re used to. This idea of self-sufficiency is really a characteristic of how we pay for things.”

Cash still relevant

“Cash payment offers something no other payment system offers,” said Nairo Nassuirio, Sales Director at G+D. “There are no compatibility issues. Everybody understands it. Literacy, or a lack thereof, isn’t really a hindrance, because everybody can count money. Most importantly, there are no fees, for merchants or payers.” The fact that it is free to use is important in South Africa, and illustrates another aspect of the market, one that it is extremely sensitive to costs.

“Family members will use one account between themselves,” said Niezen. “They’ll deposit their salaries into the same account and do all their transactions from that one place, just to save on fees.”

Ground realities fuel innovative solutions

The issue of internal remittance has found similarly innovative workarounds. A South African who works in a city and wants to have access to her cash when she travels to her family home in the hinterland – which may lack the infrastructure to accept electronic payment – can walk into a grocery store and make that happen. She gives the cash to the cashier with her ID and cell phone number, enters a PIN, and is given a withdrawal number in exchange. She can present that number at an ATM, or at that store’s branch close to where she is heading. For a small transaction fee, she has access to her money, without having to transport it on her person.³

This also works in a person to person (P2P) format, Niezen pointed out. “Generally speaking, a workman can receive his wage by having it sent to his phone,” he said. The workman doesn’t need to have a bank account. What he needs is a mobile phone number. The person transferring money uses their bank’s wallet, and the workman can go and redeem that – with the PIN provided, or with the transferer’s permission, which is given in the app – at an ATM, or in cash from a participating store. Various South African banks provide this service, and the cashback facility is available at stores throughout the nation.⁴

Payment cards growing

South Africa is an inclusive economy. Over 80% of the population has access to formal banking channels.⁵ As Nassuirio noted, this means most South Africans have at least a debit card. In fact, the majority of payment card transactions are by debit cards, though a recent surge in credit card transactions has been noted.⁶ Payment card issuance and usage in the South African context is clearly robust.

Niezen pointed to his own experience: since 2011, G+D has issued 100 million cards in partnership with Capitec Bank, a leading South African institution. A key differentiator was the early realization that customers preferred speedy issuance. The process of getting cards printed and dispatched to customers at their mailing addresses was viewed as a shortcoming. Back in 2011, Capitec and G+D made it possible for a customer to walk into a branch and leave with a fully activated card. Today, 100 million cards later, the partnership is still going strong.

As everywhere, credit card usage is higher among wealthier citizens, with ease of use and loyalty benefits being cited as factors. Additionally, there is the phenomenon of the members of a family using one credit card to manage their purchases and pool their benefits.⁷ This could also be a contributing factor to the spike in credit card usage, said Nassuirio.

Currently, credit cards are available on the dominant international plans. A domestic plan is in the works.⁸

The case for digital payments

The South African Reserve Bank (SARB) has advanced financial inclusion through digital payments by means of its Digital Payments Roadmap, also known as Project Stimela.⁹ One result is PayShap, an instant payments platform developed in partnership with South Africa’s major banks. Using unique IDs or a customer’s mobile phone number, money can be transferred instantly between users. It can also be used to pay bills, in addition to its P2P capabilities. As the major banks are partners, interoperability between them is seen as a major success factor.

South Africa’s technical agility and problem-solving capabilities have seen QR-code-based payments grow quickly. Merchants display the code, and customers scan and pay into the merchants’ accounts. Further, certain banks have made tap-on-phone apps available, enabling a merchant’s smartphone to function as a point of sale (POS) machine. Among other factors, this would indicate that digital payments are set to explode in South Africa. 

There are barriers to adoption, however, noted Niezen. Usage is restricted to relatively low values currently. Connectivity barriers, whether electric or network, remain. There is also an issue of distrust, accepted Nassuirio. “People still need to understand the digital sphere and trust its security,” he said. 

In addition, banks developed their own wallets and solutions to solve specific issues their customers faced. There is an element of competition between the existing modes of digital payment. However, given the backing of stakeholders across the board, digital payments in South Africa can only grow.

Eco-friendly and innovative

“We issue a lot of cards,” smiled Niezen. “What we are seeing is a growth in personalized cards that reflect a user’s lifestyle and aspirations.” This could be eco-cards, or those made with special materials. These go hand-in-hand, said Nassuirio. A wealthier demographic wants cards they can relate to. This is also a cohort that is probably better educated and thus more receptive to ESG concerns that it expects banks to adhere to.

Banks are aware of this expectation. Recycling and other sustainability criteria are more likely to be part of a tender process now, for cards and other financial products. Beyond cards, banks in South Africa play a visible role in helping in their communities, including supporting schools, athletic teams, etc. 

An intriguing area of potential growth stems from the deep knowledge banks have of their customers. Along with their background in issuance and in securing data, this enables them to partner with the government in making citizen access to national IDs and passports more accessible.¹⁰ By bringing more people to the bank and its app, this widens the net of potential customers.

South African banks have been similarly agile in differentiating themselves by providing services to their customers that go beyond the financial. To cite one example, Discovery Bank offers a fast-track service through security and passport check at select airports to some of its card clients.¹¹ 

It comes back to self-sufficiency, noted Niezen. “We South Africans make things for ourselves and in our own way. After all, we know our own country and what we need. This makes us stronger and more resilient.”

 With its background in designing and delivering SecurityTech in different situations around the world, G+D understands the value of local knowledge and fostering resilience that is tailored to its environment. It is well-placed to partner with institutions that seek to prosper within South Africa’s dynamic payments ecosystem.

Published: 05/02/2026