South Africans are rapidly transforming their payment habits, with a notable shift towards digital alternatives such as direct-from-bank transfers and mobile wallets.
This was contained in the 2025 State of Consumer Payment in South Africa report, released by Stitch in collaboration with global research firm, Censuswide.
Based on a survey of 2,000 consumers, the report reveals that while cash and cards remain in use, digital payment methods are quickly becoming dominant, especially for online transactions.
Among the standout trends is the rapid rise of Pay by Bank options like Capitec Pay, which offer real-time, secure transfers. These methods are now outpacing traditional cards and even cash in popularity, prompting merchants to adapt.
Consumers are demanding speed and reliability, and businesses are responding by integrating direct bank APIs and instant payment solutions, the report stated.
The report further indicates that digital wallets such as Apple Pay, Google Pay, and Samsung Pay are also gaining significant ground. This is due to the convenience of one-click transactions and features like biometric security which have encouraged many consumers to switch from physical cards.
Stitch noted also the impact of digital wallets and others in reshaping the market and customer behavior.
When we launched our first report in early 2023, PayShap and Capitec Pay had not yet come to market, and digital wallets were still emerging. Now, they are reshaping consumer behaviour.
Meanwhile, Buy Now, Pay Later (BNPL) services are gaining popularity among younger shoppers, particularly for higher-value purchases. Retailers report increased basket sizes and reduced cart abandonment rates when BNPL is offered.
What could the future look like?
People are moving away from cash and cards at a faster rate than ever before. The rise of digital payments, especially direct-from-bank methods like Capitec Pay and digital wallets such as Apple Pay, Google Pay, and Samsung Pay, signifies a broader shift in consumers’ interact with money.
What is driving the shift?
Consumers are prioritizing speed, security, and ease of use when making payments. Real-time bank transfers and biometric features on digital wallets are major drivers of adoption, pushing businesses to integrate instant payment APIs and move beyond slow or risky payment methods.
Why does digital payment matter?
Retailers and digital platforms that fail to support preferred payment methods risk losing customers. With consumers embracing Pay by Bank and digital wallets at scale, the message is clear: integrate smarter payment solutions or get left behind.
Talking Point
Digital payments are rapidly gaining ground in South Africa, with consumers favoring direct-from-bank methods like Capitec Pay and mobile wallets for their speed, security, and convenience. This shift is pushing businesses to adopt real-time payment systems and reduce reliance on cash and cards.
In Nigeria, a similar trend is driven by fintech growth and mobile money adoption. Wallets like Opay, Palmpay, Moniepoint, and Paystack are reshaping how people transact, especially among younger users. Across the continent, the demand for faster, safer payments is accelerating the move towards a cashless future.
