The landscape of digital payments in South Africa is changing faster than ever before. A new “State of Consumer Payment in South Africa” report by fintech firm Stitch, in partnership with Censuswide, shows that consumers are rapidly moving away from cash and cards in favor of digital payment methods.
The Rise of Digital Wallets and Bank Payments
The 2025 report, which surveyed 2,000 South Africans, found that while cash and cards remain part of daily life, digital wallets and direct-from-bank payments are quickly becoming the preferred ways to pay, especially online. This marks a significant shift in consumer behavior, driven by the demand for speed, security, and convenience.
Key Trends at a Glance
What’s Driving the Shift?
The report highlights three main drivers behind this digital payment revolution:
- Instant Gratification: South Africans expect instant, frictionless payments. Digital wallets and bank APIs deliver this, making them more attractive than cards or cash.
- Enhanced Security: Visible security features like biometrics and two-factor authentication are now standard expectations. Consumers actively look for these before completing a transaction.
- Unified Experience: Shoppers want seamless payment options across online, in-app, and in-store environments. Businesses that offer these omnichannel experiences are seeing increased customer loyalty.
Who Risks Being Left Behind?
While the shift to digital is clear, it is not universal. The report warns that rural communities, older South Africans, and those without reliable internet access may be excluded from this rapid transformation. As more businesses go cashless, there is a real risk of leaving some consumers behind.
However, there are positive signs of adaptation. For example, millions of older and rural South Africans who once collected their SASSA grants in cash now receive their money on payment cards. This shows that with the right support, many people can successfully make the switch. The rise of digital wallets, including services like Apple Pay and those from top brands like Samsung, are also helping to bridge this gap by offering intuitive, user-friendly interfaces.
For South African businesses, integrating new payment methods is no longer optional. The winners will be those who deliver secure, instant, and seamless experiences. This trend in digital payments in South Africa mirrors what is happening in other major African markets, including Nigeria, where fintech innovation is rapidly changing consumer habits. In the coming years, the ability to pay quickly and securely will not just be a convenience, but a competitive advantage across the continent.
