South Africa’s card payments market is forecast to grow by 11.4% in 2024 to reach ZAR2.3 trillion ($125 billion), supported by a continued consumer shift towards non-cash payments, according to new GlobalData research.
GlobalData’s Payment Cards Analytics reveals that card payment value in South Africa registered a growth of 13.4% in 2023, driven by a rise in consumer spending. South Africa has been steadily transitioning towards becoming a less cash-centric economy, backed by government initiatives promoting electronic payment methods. The transition from cash to cards is evident in the expanding number of POS terminals, which rose from 424,873 in 2020 to 531,387 in 2024.
According to the report, Debit cards now account for 70.7% of the total card payment value. The preference for debit cards can be attributed to several factors, including a growing banked population and the availability of basic bank accounts for low-income segments as well as the National Development Plan of 2012. A key aim of this plan is to achieve a 90% banked population by 2030—a target that now looks increasingly likley to be surpassed. Debit card payment frequency has also risen to 89.2 in 2024, up from 61.8 in 2020.
Siddharth Das, Banking and Payments Analyst at GlobalData, said: “South Africa remains a cash-driven society, with consumers preferring to use cash for day-to-day transactions. However, the country’s payments market is steadily shifting towards electronic payments, driven by the combined efforts of the government and financial institutions.”
Elsewhere, credit and charge cards account for only 29.3% of the total card payment value in 2024. However, banks in the country are offering various value-added benefits to increase the use of credit cards, such as rewards, discounts, and cashback, the report said.
