Market Size of South Africa Real Time Payments Industry
|2019 - 2029
|Base Year For Estimation
|Market Size (2024)
|USD 0.41 Billion
|Market Size (2029)
|USD 2.04 Billion
|CAGR (2024 - 2029)
*Disclaimer: Major Players sorted in no particular order
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South Africa Real Time Payments Market Analysis
The South Africa Real Time Payments Market size is estimated at USD 0.41 billion in 2024, and is expected to reach USD 2.04 billion by 2029, growing at a CAGR of 37.97% during the forecast period (2024-2029).
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 likely 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, telecom 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.