South Africa Cards and Payments - Opportunities and Risks to 2025

South Africa Cards and Payments - Opportunities and Risks to 2025

Summary

GlobalData’s ‘South Africa Cards and Payments - Opportunities and Risks to 2025' report provides detailed analysis of market trends in the South African cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers, and direct debits during the review-period (2017-21e).

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 (2021e-25f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

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.

• The South African banking space is being shaped by the entry of new digital players challenging the status quo and driving innovation. In August 2021, digital-only Bank Zero launched its operations after receiving an operating license from the South African Reserve Bank (SARB). The bank offers various products, including debit cards. Previously, digital-only Discovery Bank was launched in March 2019. It uses a behavioral model to reward its customers for their lifestyle choices. Managing money well, eating healthily, and staying fit earn customers rewards that can be redeemed at partner merchants. The bank offers a range of payment cards to its customers.
• The onset of COVID-19 has accelerated the use of contactless cards. According to a 2021 Visa survey, 59% of shoppers prefer contactless payment methods. This trend has been supported by the increased contactless payment limit, which rose from ZAR200 ($12.54) to ZAR500 ($31.35) in November 2017. International schemes are looking to take advantage of the growing preference for contactless payments. In November 2021, UnionPay International and Standard Bank launched contactless payments via UnionPay International cards at Standard Bank POS terminals.
• In September 2021, Shoprite Group launched a physical store with no checkouts. The system enables customers to enter the store, choose their products, and exit the store. Customers need to open their Shoprite smart app and scan it at the entrance, as the store only permits entrance to individuals who are signed up to the app. Biometric technology and cameras installed in-store detect when products are taken from or returned to shelves, keeping track of the products a customer has selected in a virtual cart. Once an individual exits the store, the purchase amount is automatically debited from a payment card registered in the app.

• 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.