Technology

South Africa: Payment Journey and Key Trends

South Africa is steadily moving towards a less cash depend society. This is demonstrated by comparing transaction volumes for different payment methods from 2009 to 2013.

What is clear to tell is that electronic payment transaction volumes (e.g. cards, credit transfers and direct debits) continue to increase year-on-year. Card payments specifically increased the most with a 16% compound annual growth rate over the 5 years reaching 1.6 billion transactions in 2013, according to the BIS. This compared to cash payment transaction volumes (e.g. ATM cash withdrawals and cheques) that either had slow growth or even a decrease in the case of cheques over the same period. ATM cash withdrawal transaction volumes increased from 2009 to 2011, but then started to decrease through to 2013.

Annual Transaction Volumes

This all while electronic payment volumes had substantial increases over the same period. Cheques displayed a steady decrease in transaction volumes since 2009 and even a more notable decrease in value from R2.4 trillion ($198 billion) in 2009 to only R500 billion ($42 billion) in 2013.

Evolution of Payment Regulations

The SARBs main objective is to ensure the safety and efficiency of the National Payment System. The South African regulations has been aligned, developed and refined to provide for the domestic payment system, and at the same time adhere to international best practice. The scope of the South African regulations includes both banks and non-bank participants. The SARB works closely with other regulatory authorities to ensure that the initiatives and policies are implemented efficiently and that all participants adhere to the relevant regulations.

Banking Evolution_ South Africa

Banking Evolution_ South Africa

 

 

Banking Evolution_ South Africa 2

Banking Evolution_ South Africa 2

Please click here to download the Payment Developments in Africa 2015, Vol. 1

About Femi Oke

Relentless passion for creativity and digital acumen to help a professional services firm thrive in the digital space. Femi is an individual with a rich experience on regional African knowledge, its diverse business culture and he understands the continent’s economic drive. He thrives on selfless service and lasting mutually beneficial relationships with colleagues and especially clients encountered in the course of his duties. He is creative, practical and self-motivated with business judgement in corporate, brand and strategic communications, social, digital & traditional media and executive profiling. Roles in the firm include New Media, Digital Communication, Corporate Communication, executive profiling and Brand Management execution. Working on the multi-million dollar Africa high growth market project stands out for femi; besides this, managing all KPMG’s digital communication for the World Economic Forum on Africa is another project that gives him great delight. Femi holds a Masters Degree in Global Marketing from the University of Liverpool.

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