South Africa Real Time Payments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South Africa Real Time Payments Market is segmented By Type of Payment (P2P and P2B).

Market Snapshot

Real-Time Payments Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 13 %
Real-Time Payments Market Key players

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The South Africa Real-Time Payments market is expected to register a CAGR of % during the forecast period (2022 - 2027). Real-time payments typically focus on low-value retail payment systems (RPS); they differ from real-time gross settlement systems (RTGS) and distributed ledger payment systems.

  • In addition to meeting the demands and expectations, real-time payments have generated interest from regulators, competition authorities, and payment service providers. Regulators believe that instant payments will expand access to banking services, support economic growth, provide alternatives to Visa/Mastercard networks and reduce the use of cash and cheques.
  • Financial inclusion is one of the main objectives of the South African Reserve Bank’s (SARB) Vision 2025, particularly in digital inclusion. Although 80% of South Africans have a bank account, most consumer transactions are still cash-based. However, progress has been made to broaden and deepen financial inclusion in the country.
  • Vision 2025 sets out the imperative for the public and private sectors to collaborate for in-depth financial inclusion, reduce the reliance on cash, and encourage digital payment methods to achieve more inclusive and sustainable economic growth. This is expected to increase the rate of real-time payments in the country.
  • Additionally, the growing regulatory trends toward a fintech-friendly payments environment signify that the country is moving in a digital direction, with the local payments landscape expanding rapidly to include fintech, telecoms companies, and even retailers.
  • Accepting digital payment methods is expected to improve post-COVID-19 and play a more vital role in the long term. With cash being seen as a potential carrier for the virus, governments and regulatory bodies discourage its use. These developments are expected to boost the overall market.

Scope of the Report

Real-time payments, or RTP, are payments that are begun and settled nearly immediately. It is the digital infrastructure that facilitates real-time payments. Ideally, real-time payment networks provide 24x7x365 access, which means they are always online to process transfers at any given day or time.

By Type of Payment
P2P
P2B

Report scope can be customized per your requirements. Click here.

Key Market Trends

BFSI is Expected to Drive the Market

  • The BFSI sector has been tremendously scaling up in the country. The landscape of payments is changing rapidly in the country, owing to the growing enterprises and consumer propensity toward digital transformation and the proliferation of smartphones. The technological advancements in smartphones, digital payment cards, and POS at retail terminals fuel the market’s growth.
  • Many vendors in the market are innovating their payment gateway. For instance, in January 2021, Mastercard, a prominent player in the global payments industry, and Network International of Digital Commerce in the Middle East & Africa (MEA) region announced a partnership to launch a new digital platform across the region.
  • Moreover, Ozow raised a USD 48 million Series B to provide more alternative payment solutions to its millions of merchants and consumers. Such developments are expected to drive the market forward.
  • South Africa reached a milestone in implementing the Central Bank Digital Currency (CBDC) by signing a technical proof of concept for its wholesale CBDC payment system. This Project is called Project Khokha2 (PK2), and the second phase started in February 2021.
  • Furthermore, the Project is involved in testing DLT with trading and settlement in a PoC environment. There are several names from the industry as a part of the Project: FirstRand, JSE Limited, Absa, Standard Bank, and Nedbank together formed the Intergovernmental Fintech Working Group (IFWG). Such developments are also expected to drive more demand in the market.
Real-Time Payments Market Trends

Retail Sector is Expected to Hold a Significant Market Share.

  • The payment market is changing in line with consumer behavior. The cashless economy, mobile banking, instant payments, digital commerce, and the growing impact of regulatory agencies are a few trends affecting the payment market.
  • The country has been witnessing increased real-time payments in the retail sector. More people are increasingly shifting from cash transactions to cashless. According to Worldpay, the share of cash transactions in the retail industry was 57% in 2017. This significantly decreased to 38% in 2021. This suggests an increased demand for real-time payments in the country.
  • This has influenced many global players to provide payment services in the country. For instance, in June 2022, Payment solutions firm PayU revealed its plan to boost its footprint in Africa. In South Africa, PayU is updating its product through its partnership with Payflex.
  • Brick-and-mortar retailers are all set to change in-store experience to compete with the e-commerce industry by adopting mobile pay-and-go shopping. Mobile pay-and-go solution is gaining momentum across the country, as retailers can increase their average revenue per user (ARPU), enhance customer experience, boost loyalty, and increase operational efficiencies. There is significant competition among digital payment providers in the e-commerce industry. Competitors include incumbents like PayPal, tech giants like Google and Apple, traditional institutions like banks and card companies, and a rising number of tech start-ups in South Africa.
Real-Time Payments Market Growth rate

Competitive Landscape

With consumer preferences changing rapidly, the market has become a lucrative option and thus, has attracted a huge amount of investments. Due to the huge growth potential, the market is moving towards fragmentation due to the new entrants. The service providers are engaging in partnerships to promote product innovation.

  • May 2022 - South African mobile pay platform Zapper announced that merchants on its platform would be able to accept tap-on-phone payments. This will give them access to almost all digital payments without needing other point-of-sale (POS) hardware, and it won’t matter whether customers have the Zapper app.

Recent Developments

  • February 2022 - ACI Worldwide announced a partnership with one of South Africa’s leading financial services providers, Nedbank, to drive its digital transformation journey, including real-time payments. As part of the migration, Nedbank would be utilizing ACI Low-Value Real-Time Payments, enabling the bank to offer real-time mobile payments to its customers.
  • July 2021 - South African banks are developing the Rapid Payments Programme, an inter-banking payment system poised to revolutionize digital transactions in SA. The industry-wide collaboration is led by BankServAfrica, in partnership with the Payments Association of South Africa and the Banking Association of South Africa.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Evolution of the payments landscape in the country

    4. 4.4 Key market trends pertaining to the growth of cashless transaction in the country

    5. 4.5 Assessment of COVID-19 Impact on the Foodservice Packaging Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increased Smartphone Penetration

      2. 5.1.2 Falling Reliance on Traditional Banking`

      3. 5.1.3 Ease of Convenience

    2. 5.2 Market Challenges

      1. 5.2.1 Payment Fraud

      2. 5.2.2 Existing Dependence on Cash

    3. 5.3 Market Opportunities

      1. 5.3.1 Government Policies Encouraging the Growth of Digital Paymentis expected to aid the growth of Real Time Payment methods amongst commoners

    4. 5.4 Key Regulations and Standards in the Digital Payments Industry

      1. 5.4.1 Regulatory Landscape

      2. 5.4.2 Business Models with Potential Regulatory Roadblocks

      3. 5.4.3 Scope for Development in Lieu of Evolving Business Landscape

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type of Payment

      1. 6.1.1 P2P

      2. 6.1.2 P2B

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 PayU Payments Private Limited

      2. 7.1.2 iVeri Payment Technologies

      3. 7.1.3 Fiserv Inc

      4. 7.1.4 MyGate (Wirecard South Africa (Pty) Ltd

      5. 7.1.5 Volante South Africa Payment Solutions

      6. 7.1.6 Electrum Payments

      7. 7.1.7 BankservAfrica

      8. 7.1.8 Pay4it ApS

      9. 7.1.9 PayFast (Pty) Ltd (DPO Group)

      10. 7.1.10 ACI Worldwide

      11. 7.1.11 Ozow (Pty) Ltd

      12. 7.1.12 BankservAfrica

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The South Africa Real Time Payments Market market is studied from 2020 - 2027.

The South Africa Real Time Payments Market is growing at a CAGR of 13% over the next 5 years.

PayU, iVeri , Fiserv Inc, MyGate, Peach Payments are the major companies operating in South Africa Real Time Payments Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!