The market has been on the rise for the past few years
According to GlobalData, the South Africa card payment market registered a subdued growth of 3.7% in 2020 due to COVID-19 with reduced consumer and commercial spending.
Nevertheless, with the gradual recovery in economic activities, card payments are expected to rise by 7.6% to reach $97.3 billion in 2021.
The preference for convenient and seamless payments has soared in South Africa amid the pandemic, with an increasing number of consumers and merchants embracing digital channels for their purchases such as contactless payments and e-commerce.
To encourage the shift away from cash, banks in South Africa increased the limit for contactless card payment without the use of a PIN from $13.65 to $34.13. As debit and credit cards account for over a third of all online spending in the country, a rise in e-commerce purchases will further push the usage of card payments.
We’ve reported that Visa and Goldman Sachs announced collaboration.