South Africa Cards and Payments: Opportunities and Risks to 2028

South Africa Cards and Payments: Opportunities and Risks to 2028

South Africa Cards and Payments: Opportunities and Risks to 2028

Summary

GlobalData’s ‘South Africa Cards and Payments: Opportunities and Risks to 2028' 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, direct debits, and cheques. 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 credit cards.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• The competitive landscape of the South African cards and payments industry.

GlobalData’s ‘South Africa Cards and Payments: Opportunities and Risks to 2028' 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 transfer, direct debits, and cheques during the review-period (2020-24e).

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 (2024e-24f). 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.

Key Highlights

• In November 2023, the National Treasury introduced the Financial Inclusion Policy Framework. The policy focuses on deepening financial inclusion for individuals, improving access to financial services for SMEs, and supporting competition and diversification of the supply base. The National Treasury will work with stakeholders such as financial sector regulators, government departments, the private sector, and other agencies to implement the policy and other financial inclusion initiatives, which will help foster economic empowerment and opportunities nationwide.
• In March 2023, instant payment system PayShap was launched by the central bank in collaboration with PASA, BankservAfrica, and other industry participants. The new mobile-friendly payment system is available on a 24/7/365 basis and supports payments using proxies such as smartphone numbers. The system has a maximum transaction limit of ZAR3,000 ($162.49) and a daily limit of ZAR5,000 ($270.81). Funds are settled instantly in the recipient’s account within 10 seconds. Available for both retail customers and businesses, as of August 2023, PayShap had recorded 14 million transactions since launch in March 2023, with a total settlement value of over ZAR9 billion ($487.5 million). As of May 9, 2024, 10 banks offer the PayShap service.
• In addition to regular merchant payments, contactless payments are also accepted for public transport. In September 2023, Loop (a provider of minibus taxi booking services) collaborated with Visa to launch the Tap-to-Phone solution for minibus and taxi commuters and operators on the Mitchells Plain to Bellville route. This solution-alongside Loop's existing Chat-to-Pay feature on WhatsApp-allows commuters to scan the taxi driver’s QR code, review the details, and make payments via Chat-to-Pay. Loop is pursuing partnerships with other taxi associations to expand the service.

Scope

• Card market size in terms of number of cards, value and volume of transactions in South Africa along with detailed card segmentation of debit, credit and charge cards available in the country.
• Market sizing and analysis of major payment instruments including cash, cards, credit transfer, direct debits, and cheques.
• Payment market trends and growth for both historical and forecast period
• Competitor analysis with detailed insights into leading card issuers and schemes.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• A detailed snapshot of country's key alternative payment brands.

Reasons to Buy

• 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.