Source: GlobalData
South Africa card payments to exceed $158 billion in 2025 amid digital surge and inclusion push, forecasts GlobalData
Posted in Banking
The South African card payments market is on a solid growth trajectory, projected to reach ZAR2.9 trillion ($158.8 billion) in 2025. This momentum is driven by a growing shift toward digital payments, bolstered by enhanced financial inclusion, expanding payment infrastructure, and rising consumer preference for speed, safety, and convenience in everyday transactions, says GlobalData, a leading data and analytics company.
GlobalData’s Payment Cards Analytics reveals that card payment value in South Africa registered a growth of 10.3% in 2024 to reach ZAR2.7 trillion ($149.4 billion). This growth is primarily fuelled by the rise in the consumer spending and wider acceptance of card payments among merchants.
Yasaswini Pujitha, Banking and Payments Analyst at GlobalData, comments: “The South African payment landscape is evolving rapidly, supported by growing banking population, rising contactless payment adoption and developing payment infrastructure. The average frequency of payments per card stands at 118.1 times in 2024, which is higher compared to its peers such as Nigeria (51), Egypt (24.2), Morocco (10.9), and Kenya (5.3).”
Debit card payments held a significant share of the total card payments market in South Africa, accounting for 74% in total payment value in 2024. This is primarily driven by the expanding banking population and increasing use of debit cards for low-value, day-to-day payments. Meanwhile, digital banks and fintech companies such as Discovery Bank, TymeBank, and Bank Zero are offering innovative banking services, further increasing competition in the debit card space.
Credit and charge cards, on the other hand, held the remaining 26% share of card payments by value in 2024. The adoption and usage of these cards is driven by the associated value-added benefits offered by banks, such as cashback, reward points, discounts, and installment payment facilities. This growth is also supported by the rising middle class and a young, working population.
The rise of contactless payments is contributing to the overall card payments growth with banks and scheme providers increasingly promoting this technology. Both consumers and merchants are embracing the contactless technology in the country.
According to GlobalData’s 2024 Financial Services Consumer Survey*, 68.4% of the respondents in South Africa indicated having access to a contactless card and used it for payments.
Growing adoption of contactless card payments for transport services is also contributing to the expansion of card payment market. South African National Roads Agency Limited (SANRAL) is implementing the nationwide rollout of contactless payment systems at toll plazas.
Effective from 1 December 2024, magstripe card payments were phased out at certain toll gates, with a complete transition to contactless payments expected by 31 May 2025. This initiative is backed up by the financial institutions, along with payment scheme providers such as Visa and Mastercard.
Pujitha concludes: “South Africa’s payment card landscape is set for steady growth over the next five years, marked by increased adoption of payment cards amid a boarder digital transformation. The proliferation of digital banks, an increasing preference for contactless technology, and improving payment infrastructure are the key drivers for this growth. The market is expected to grow at a compound annual growth rate (CAGR) of 6.7% between 2025 and 2029 to reach ZAR3.8 trillion ($206.2 billion) in 2029.”
*GlobalData’s 2024 Financial Services Consumer Survey was carried out in Q2 2024. Approximately 67,292 respondents aged 18+ were surveyed across 41 countries.