Payments April 2025

DIGITAL CURRENCIES

EVOLVING ECOSYSTEMS

CROSS-BORDER PAYMENTS

FRAUD PREVENTION

HARNESSING ANALYTICS

POINT OF SALE

POWERING TRANSACTIONS

57

Real-time payment solutions can help businesses gain greater control over their nances.

62

A greater variety of payment options offers more exibility for businesses and consumers. 66

Learning more about customers through embedded payment solutions.

68 FINTECH

A uni ed payments ledger can boost transparency, reduce complexity and keep businesses agile.

Can central bank digital

Where

The

How

Payment gateways are evolving to offer enhanced security, seamless cross-border transactions and API-driven ef ciency.

South Africa is taking steps towards establishing a digital identity for all citizens.

Digital payments have the potential to transform economies across Africa.

Mobile wallets represent an opportunity to boost nancial inclusion across the continent. 52

Fintech advancements are rapidly streamlining cash exchange between countries.

69 FRAUD PREVENTION

Financial service providers are leveraging arti cial intelligence to help detect and prevent fraud.

Harnessing payment analytics to drive customer-centric growth in the digital economy.

Analytics can be a game-changer for businesses that apply it smartly.

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EDITORIAL

Editor: Anthony Sharpe

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Contributors: Raymond Chiimba, Trevor Crighton, Megan Ellis, Dayalan Govender, Biénne Huisman, David King, Busani Moyo, Veenash Parbhoo, Thando Pato, Brendon Petersen, Gabriel Roux, Thea Sokolowski, Rodney Weidemann

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No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. Payments is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.

YOU SPIN ME RIGHT ROUND

If money makes the world go round, then perhaps it’s no surprise our world seems to be spinning out of control.

The proliferation of technology and infrastructure in the payments ecosystem is dizzying, with nancial services providers (FSPs), businesses and consumers racing to implement faster, more secure and more convenient ways to move money around.

In this inaugural edition of Payments, we look at a host of the key trends in uencing this space.

Arti cial intelligence (AI) is, unsurprisingly, having a great impact, particularly in the fraud prevention space – this is crucial considering that AI tools are increasingly being employed by criminals. AI is dependent on good data, which FSPs collect in abundance, representing a golden opportunity for organisations to understand their customers and the ecosystem at large by applying payment analytics.

ARTIFICIAL INTELLIGENCE IS, UNSURPRISINGLY, HAVING A GREAT IMPACT, PARTICULARLY IN THE FRAUD PREVENTION SPACE – THIS IS CRUCIAL CONSIDERING THAT AI TOOLS ARE INCREASINGLY BEING EMPLOYED BY CRIMINALS.

Consumer data is being used to establish digital identities, which represent a more secure way of establishing that someone is who they purport to be, but numerous regulatory and technological challenges remain. Digital currencies are also evolving, with South Africa’s cryptocurrency landscape moving beyond just investment speculation, while central bank digital currencies represent a new way for people to transact with at currency.

Digital payments are transforming transactional habits across Africa, not least of all by promoting nancial inclusion and enabling new ways of doing business. These are bolstered by a range of ntech advancements that aim to make cross-border payments cheaper, faster and more transparent, ultimately boosting intra-African trade.

We also look at embedded payments, core ledger technology, cloud-based point-of-sale systems, digital wallets and more. Considering how much time we spend spending money, browsing this magazine might be time well spent.

Anthony Sharpe, Editor

Anthony Sharpe

HOW SOUTH AFRICA’S PAYMENTS ECOSYSTEM IS EVOLVING IN 2025

South Africa’s payments ecosystem has been evolving rapidly with significant growth over the past few years and open banking continuing to take centre stage, writes THEA SOKOLOWSKI , head of marketing and communications at Stitch

Capitec Pay was the rst bank application programming interface (API) to enter the market, launching in 2023. Since then, this method has seen massive growth and other bank APIs, including Absa Pay and Nedbank Direct EFT, have followed.

PayShap launched in 2023 on South Africa’s Rapid Payments Programme – or instant payment rails – with its latest iteration, PayShap Request, currently being rolled out. This is poised to make it even easier, safer and more ef cient for customers to make payments directly from their bank accounts.

Fintech innovators, such as Stitch, are developing new, more ef cient solutions that enable businesses to leverage the latest technology emerging from the online banking space while providing increasingly seamless payment journeys for their customers.

Across industries, we see innovation from a customer experience, security and payments perspective.

GROWING DEMAND FOR FASTER, EASIER MONEY MOVEMENT

Consumers increasingly demand faster, more seamless and more personalised experiences when shopping or paying online. This is re ected in the new payment methods and options being launched, including PayShap Request.

It also extends to withdrawals, refunds and claims payouts. A recent consumer survey in the insurance space found that 56 per cent of consumers, for example, would be in uenced to choose an insurance provider based on how easy it is to receive payment after a claim.

In the gaming space, 78 per cent of surveyed punters indicated that fast and easy withdrawals would in uence where they choose to place their bets – with fast processing times as the number one indicator of a positive withdrawal experience.

Today, the businesses that will win are the ones that will be able to offer fast, reliable and seamless payments – and payouts.

APPLE PAY, GOOGLE PAY, SAMSUNG PAY ON THE UP

Digital wallets – including Apple Pay, Google Pay and Samsung Pay – are growing rapidly in South Africa. Tap-to-pay technology makes it easier to get moving when paying in person and one-click digital payments enable a smoother checkout.

Many of South Africa’s largest banks recorded a big surge in digital wallet usage in the rst half of 2024, with Apple Pay being the most popular method.

Some e-commerce clients using Stitch for payments found that upwards of 25 per cent of online card transactions moved over to Apple Pay upon launch, with over 30 per cent moving within two months.

THE RISE OF OMNICHANNEL RETAIl

One of the standout trends is the growing opportunity in omnichannel retail, where brands such as The Foschini Group’s Bash and Yuppiechef are changing the game when it comes to creating a uni ed and personalised experience for their customers, no matter where they choose to shop.

These brands have made signi cant inroads in streamlining the shopping experience for their customers. In line with a true omnichannel experience, they offer customers the ability to, for example, purchase items in-store and at point of sale and order additional items for delivery in the same transaction. The customer’s previous shopping history and payment preferences can be saved, allowing

for a better overall shopping experience, often leading to a bigger basket size.

CHAT AND CONVERSATIONAL COMMERCE CONNECT HUMANS IN A DIGITAL WORLD

There is also ongoing demand for more human interaction and customer support, leading to a surge in chat and conversational commerce.

Customers are looking to engage with real humans via chat – and on social media – for support with purchasing. Breaking that ow by forcing them to initiate a payment elsewhere can result in a drop-off. In these cases, the ability to send custom payment links in chat is a game-changer – ensuring the transaction is completed and the customer is satis ed.

THE EVOLUTION OF SOUTH AFRICA’S BANK-TO-BANK PAYMENTS SPACE

As the market shifts towards open banking, the pay-by-bank/bank-to-bank payments space is beginning to resemble card payments more closely, meaning greater convenience and security for users and a more standardised offering for merchants across banks.

With the demand for instant, digital payments increasing, traditional payment methods face competition. Request-to-pay options enable a better user experience, faster settlement, lower costs and better fraud prevention than traditional methods.

CONSUMERS INCREASINGLY DEMAND FASTER, MORE SEAMLESS AND MORE

PERSONALISED EXPERIENCES WHEN SHOPPING OR PAYING ONLINE.

Follow: Thea Sokolowski www.linkedin.com/in/thea-sokolowski/

Thea Sokolowski

POWERING PAYMENTS FOR EVERY SOUTH AFRICAN: THE PAY@ ADVANTAGE

With flexible and scalable solutions and continuous innovation to adapt to changing market demands, Pay@ ensures all businesses can benefit from an integrated payments system

The payments landscape is evolving rapidly.

The Payments Association estimates that mobile wallets will reach 4.8 billion users this year and noncash transactions will amount to 2.3 trillion by 2027. Contactless, mobile and end-to-end digital solutions are transforming how businesses and consumers transact. However, in a country as diverse as South Africa, a true payments leader must balance digital innovation and nancial accessibility.

Over nearly two decades, Pay@ has built a legacy of trust and leadership, offering one of the most comprehensive payment ecosystems in the country. Its aggregation model ensures billers – from large enterprises and small, medium and micro enterprises to public sector entities –gain access to South Africa’s extensive payment network through a single integration.

A SEAMLESS PAYMENT NETWORK: DIGITAL AND CASH UNIFIED

In South Africa, where 11 million people remain unbanked or underbanked and digital access challenges persist, an inclusive payment solution must cater to all payer types. Pay@ is a market leader in digital and cash payment solutions, ensuring businesses can serve all customers, urban and rural communities, in high-tech or low-tech environments.

Pay@’s seamless integration enables businesses to offer a wide range of payment options, including cash, card, EFT, mobile wallets and vouchers, as well as a leading portfolio of bill presentment capabilities, such as QR, payment links on any channel, invoicing, USSD, in-app and web functionality.

With an extensive partner network, Pay@ ensures maximum convenience for customers

Pay@ is a registered Financial Services Provider: FSP 29423

across all payment channels. At the core of its success is proprietary technology with high ef cacy rates for businesses.

INNOVATION, TRUST AND THE FUTURE OF PAYMENTS

Pay@ is trusted by South Africa’s top enterprises for its reliable, exible and scalable solutions. By continuously innovating and adapting to market demands – from real-time veri cation to frictionless transactions – Pay@ is a modern payment service provider. Join the future of payments with a leading payments service provider, learn more at payat.co.za

DRIVING GROWTH AND EMPLOYEE RETENTION

South African businesses face increasing pressure to modernise wage and incentive payments, particularly in sectors employing unbanked and underbanked workers. Despite advancements in digital finance, many companies still rely on outdated cash-based payment systems, leading to inefficiencies, security risks and administrative challenges, writes VEENASH PARBHOO , director at PayCentral

In 2022, The World Bank reported that more than 11 million South Africans are excluded from traditional banking systems, and the demand for alternative payment solutions continues to grow. Employers are looking for more secure, streamlined ways to compensate workers while ensuring compliance and nancial transparency.

The economic and business case for alternative payments

The informal sector, which contributes 30 per cent to South Africa’s gross domestic product, according to Statistics South Africa, remains heavily reliant on cash transactions. This presents several risks for businesses:

• Security vulnerabilities: cash payments increase the likelihood of theft and fraud.

• Administrative inef ciencies: managing, counting and distributing cash demands signi cant time and effort.

• Limited employee nancial inclusion: workers without bank accounts lack access to formal nancial services, affecting their ability to save or build credit histories. Companies that transition to alternative payment methods can signi cantly reduce these challenges while improving operational ef ciency.

BRIDGING THE GAP WITH SMARTER PAYMENT SOLUTIONS

As a leader in alternative payment solutions, PayCentral is rede ning how businesses manage wages, incentives and expenses by integrating cutting-edge nancial technology into existing corporate structures. While payment cards may not be unique, PayCentral’s true differentiation lies in its ability to develop agile, customisable tech solutions that seamlessly integrate with existing business operations.

Through its proprietary platform, PayCentral offers real-time nancial oversight, automated reconciliation and custom reporting tools, enabling companies to make data-driven decisions that support growth and nancial ef ciency. This level of control ensures businesses not only disburse payments ef ciently, but also gain actionable insights to optimise cash ow and workforce management. With a strong network of partners, including Mastercard, Standard Bank and Paymentology, organisations such as PayCentral ensure businesses have access to secure and ef cient nancial solutions designed for modern workforce needs.

Instant digital incentives ensure immediate recognition, improving morale and retention.

• Marketing agencies: event budgets require agile spending, often involving multiple vendors and freelancers. Reloadable cards eliminate the need for cumbersome reconciliation and reimbursement processes, enabling seamless transacting and reporting.

INSTANT ACCESS TO WAGES AND INCENTIVES

The ability to provide immediate nancial rewards has become a crucial factor in employee engagement and retention. Studies indicate that businesses offering instant incentives see a 27 per cent increase in employee motivation, as reported in the Harvard Business Review in 2022. Such solutions provide real-world bene ts for key industries.

• Call centres: high turnover rates remain challenging with employees often waiting weeks for incentive or commission payments.

THE ABILITY

• Agriculture: seasonal and casual labourers, many of whom are unbanked, require timely wage payments. Cashless wage payment solutions remove cash dependency while ensuring compliance. Prepaid payment solutions can enable businesses to reward, pay and manage expenses with seamless ef ciency, enhancing productivity and nancial inclusion.

ALTERNATIVE PAYMENTS AND THE DIGITAL ECONOMY

The shift towards alternative payments aligns with South Africa’s growing digital economy. According to Frost & Sullivan, businesses adopting digital wage disbursements report a 40 per cent reduction in administrative costs and fraud-related losses. Furthermore, PayCentral’s automated reconciliation tools, smart dashboards and exible integrations offer businesses greater nancial control, eliminating the manual inef ciencies associated with traditional payment systems. By leveraging technology to connect businesses with scalable, secure and streamlined nancial solutions, PayCentral empowers companies to move beyond traditional payments – driving workforce engagement, business growth and nancial inclusion.

TO PROVIDE IMMEDIATE FINANCIAL REWARDS HAS BECOME A CRUCIAL FACTOR IN EMPLOYEE ENGAGEMENT AND RETENTION.

Follow: PayCentral www.linkedin.com/company/paycentralofficial www.instagram.com/paycentralofficial

Veenash Parbhoo

POWERING SEAMLESS TRANSACTIONS: PayCentral’s journey to success

From a bold vision to a leading force in South Africa’s payment landscape, PayCentral has redefined how businesses transact. With a commitment to secure, efficient, and accessible payment solutions, the company has evolved into a trusted partner for small to large scale businesses across more than 50 industries.

Nine years ago, PayCentral’s journey began much like many other businesses – ying a kite and seeing where the wind would carry it. Recognising an opportunity to enhance an existing solution –disbursing money onto cards – the company’s directors, Veenash Parbhoo and Preniel Pentia, set out to create even greater value.

“In an industry where trust is everything, we built our reputation from the ground up, relying on word of mouth, serving small businesses and leveraging external systems to get the job done. But more than anything, we focused on what mattered most – our relationships. Delivering on our promises, setting ourselves apart with a personal touch and ensuring unmatched turnaround times became the foundation of our growth.

“Building trust starts with breaking the ice –connecting rst, then delivering with excellence. That’s what drives me every day,” says Veenash Parbhoo, founder and director.

After four years of steady growth, the COVID-19 pandemic changed everything. Suddenly, this bootstrapped business found itself on the same playing eld as established ntech giants. But instead of waiting for things to unfold, it seized the moment to stand out.

It doubled down, putting years of client feedback into action to build a platform that gives businesses complete control over card ordering, loading, distribution and management – offering full nancial oversight from card procurement to payments.

With the solution re ned, the brand was repositioned, aligning with industry leaders such as Mastercard, Standard Bank and Paymentology. The result? A sleek, powerful payment solution that rede ned convenience, control and credibility in the ntech space.

“Once established as a reputable issuer of transactional cards with strong relationships with renowned brands, we could start focusing on what truly mattered to us: positively impacting the lives of others. Having done most of the legwork for seven years, we realised that if we wanted to execute this mission, maintain our credibility and continue delivering on our promises, we needed more feet on the ground to help us,” Parbhoo explains.

VEENASH PARBHOO (left) and PRENIEL PENTIA (right), directors at PayCentral

DRIVING ECONOMIC CHANGE THROUGH ALTERNATIVE PAYMENT SOLUTIONS

Why South African businesses need alternative payment solutions: insights from PRENIEL PENTIA and VEENASH PARBHOO , directors at PayCentral.

South Africa’s evolving payment landscape presents unique challenges for businesses. Cash inef ciencies, nancial exclusion and limited visibility over transactions create operational risks that cannot be ignored. PayCentral is solving these issues head on.

In this discussion, the directors of PayCentral, explore the biggest nancial blind spots businesses face, why traditional banking is no longer enough, and how alternative payment solutions drive economic change.

What are the most overlooked financial risks businesses face and how can they be prevented?

Veenash Parbhoo: Many businesses focus on large expenses and overlook smaller, frequent transactions – petty cash, reimbursements and supplier payments that slip through the cracks. Without nancial oversight, businesses bleed money without realising it.

PayCentral prevents these risks by digitising transactions – replacing cash with real-time, trackable reloadable business cards. Businesses gain instant visibility into spending, reducing the likelihood of fraud and nancial leakage.

Did you know?

Globally, businesses lose about 5% of their annual revenue to occupational fraud, which includes schemes like petty cash theft.

Source: Enterprise Apps Today, 2023

How do alternative payment solutions contribute to economic growth in South Africa?

Preniel Pentia: Financial inclusion is more than a social issue – it’s a business imperative. A cash-based economy can pose many business setbacks. It increases security risks, manual errors and nancial exclusion, particularly for industries, such as agriculture, manufacturing and retail, where many employees remain unbanked. By digitising employee remuneration and expense management, businesses not only improve ef ciency, but also give unbanked employees access to safe, cashless nancial tools. The knock-on effect? Greater economic participation, nancial security and business stability.

Did you know?

The most recent report from the National Treasury states that 3.6 million South Africans adults remain excluded from formal financial products and services, and the demand for alternative payment solutions continues to grow.

Source: World Bank, 2022

What financial mistakes do businesses make when scaling, and how can they avoid them?

Veenash Parbhoo: Scaling without nancial discipline is an common mistake that leads to instability. Many companies chase rapid growth but fail to manage cash ow effectively. Businesses that fail to track their spending struggle with unnecessary costs, budget overruns and cash ow constraints. PayCentral gives companies real-time nancial oversight, ensuring smart, sustainable growth.

Fast facts

•According to a study by The Small Enterprise Development Agency, 70% to 80% of SME’s fail within the first five years of operation, with poor financial management being among of the top reasons.

•Research indicates that inefficiencies can cost companies between 20% to 30% of their revenue annually, with many of these costs going unnoticed.

Source: https://www.stampli.com/blog/ accounts-payable/inefficient-back-office/

How does PayCentral support businesses in reducing fraud and improving compliance?

Preniel Pentia: Fraud and noncompliance are two of the biggest nancial risks businesses face – often from within – costing businesses millions. Many companies lose money to unauthorised spending, fraudulent reimbursements and untracked cash transactions.

With PayCentral’s reloadable, trackable business cards, companies gain full control over nancial transactions, reducing fraud risks and ensuring regulatory compliance.

Fast fact

According to the South African Reserve Bank, there has been a reported 20% increase in payroll fraud cases over the past three years, indicating a significant rise in fraudulent activity related to employee salaries within the country.

Source: Frost & Sullivan, 2022

What are the biggest payment trends shaping the future of business transactions?

Veenash Parbhoo: The future of payments is instant, automated and adaptable. Businesses that don’t evolve with nancial technology will fall behind. Businesses are moving away from traditional banking towards more exible, technology-driven payment solutions. Companies need instant, digital, and cost-effective options to stay competitive. PayCentral is ahead of the curve, offering instant, trackable payments, seamless employee salary and wage disbursement, and an alternative to rigid banking structures.

Building a Culture of Innovation and Impact

“Over the past three years, the business has grown from a small team of three to a dynamic team of twenty-six. But, as the saying goes, ‘you need to get your house in order before inviting guests’. Before we could make a real impact beyond our business, we had to start within – ensuring the values that shaped our journey were deeply embedded in our team and culture,” says Preniel Pentia.

From day one, he says, they gave every customer the time, attention and respect they might not receive from larger companies. Now, as they grow, they’re ensuring this commitment to customer-centricity is embedded in every team member – because great service isn’t just a value, it’s their culture.

“We didn’t want to create a workplace that was limited to its operations and output. Instead, we wanted to build an environment that inspires creativity, collaboration, innovation and growth.

“As leaders, our focus is not to con ne our team to their designated roles, but to encourage them to discover their passions and develop their own expertise so they may become leaders in their own right.

“We encourage them to become wellrounded professionals that leave their own unique mark on the world,” Pentia explains.

Today, Pentia says that as a company specialising in employee reward solutions, they

By nurturing a culture of teamwork and creativity while embedding wellness initiatives and employee benefits into daily operations, PayCentral focuses on building its success from the inside.

“WE WANTED TO BUILD AN ENVIRONMENT THAT INSPIRES CREATIVITY, COLLABORATION, INNOVATION AND GROWTH.” – PRENIEL PENTIA

knew that fostering a culture of recognition and motivation within their own team was just as important. The goal was to create a work environment where success was celebrated and employees feel valued and empowered to perform at their best.

“Beyond implementing our own reward card programme – ensuring team members are recognised for their value – we introduced an employee bene ts programme to ease everyday expenses. But we didn’t stop there. We prioritised wellbeing, launching wellness initiatives that support both mental and physical health,” says Pentia.

From designing an in-house Zen Den – a peaceful retreat for employees to recharge – to bringing in professionals to assist with stress and anxiety management, PayCentral made it their mission to cultivate a balanced, ful lling and uplifting workplace.

“Our people are the heart of our success. With a team of passionate, driven individuals, a strong brand and a business that continues

to grow, we know that our greatest asset isn’t just what we offer – it’s who we are,” Pentia explains.

TRANSFORMING THE WAY BUSINESSES PAY

Today, PayCentral empowers over 1 000 businesses across 50 industries, revolutionising the way they handle payments. In just nine years, the company has issued more than 463 000 virtual and physical cards, facilitating over 10.5 million transactions and driving a total card spend of R4.8-billion.

With secure, ef cient and exible solutions, PayCentral helps businesses eliminate cash-related risks, streamline expense management and reward employees seamlessly. PayCentral’s mission is simple: to unlock nancial freedom and exibility by connecting businesses and their people to smarter, more powerful payment tools that do more than just process transactions – they drive success.

CONNECTING BUSINESSES TO MORE

From secure wage payments for farmworkers to seamless expense management for agencies, PayCentral empowers businesses with smarter, fl exible payment solutions that streamline operations and drive success.

At the heart of PayCentral’s solutions is a simple yet powerful goal: to connect businesses to more. More ef ciency in their daily operations, more security and control over their nances, more insights to make informed decisions and more time to focus on what truly matters.

“By providing the right payment tools, we empower businesses to unlock greater success, drive productivity and create a seamless, stress-free way to manage expenses, payroll and rewards. Because at PayCentral, we don’t just process payments – we connect you to more,” says Veenash Parbhoo.

“The impact we create for each business may vary, but at our core, our value is simple – we make life easier by streamlining payments and eliminating inef ciencies. That’s why our solutions go beyond the standard functions of a typical debit card. Whether ensuring farmworkers receive their wages securely, enabling marketing agencies to manage expenses seamlessly or helping call centres run impactful incentive programmes, PayCentral’s products offer unmatched exibility across industries.

“More than just a payment tool, PayCentral enhances nancial and HR operations in ways businesses never expected – delivering smarter, more ef cient solutions that drive real impact.”

SAFE, CASHLESS PAYMENT METHODS FOR FARMERS

For many agricultural businesses, payroll has been a complex and high-risk challenge, particularly for seasonal and unbanked workers. The traditional process often requires farm owners to make large cash withdrawals, store money on-site and distribute wages by hand. This outdated system is not only vulnerable to theft and loss, but also leaves room for human error and administrative headaches.

With PayCentral’s CashCentral cards, farmers no longer have to deal with the risks and inef ciencies of cash-based payments. Wages can be securely loaded onto PIN-protected cards and distributed once to each worker – eliminating the need for cash handling. This simple digital process can be

managed from anywhere using PayCentral’s intuitive card management platform.

For farmworkers, the bene ts are just as signi cant. The CashCentral card provides them with a safe and reliable payment tool, removing the need to carry cash while ensuring they have easy access to funds. Workers can use their cards at any local merchant accepting Mastercard for purchases or withdraw cash, giving them both security and exibility in managing their earnings.

“The PayCentral system gives our farm business ease of running our payroll system for unbanked workers. Running a cashless farm of ce bene ts us and our workers,” says Jackie Bond of Buitenverwacht Boerdery.

FINANCIAL FLEXIBILITY FOR MARKETING AGENCIEs

Marketing agencies work in a fast-paced environment where managing budgets ef ciently is essential. Payments need to be processed quickly, and expenses must be tracked accurately.

PayCentral’s self-service platform and reloadable cards provide agencies with a straightforward way to manage their expenses. Instead of reimbursing employees or dealing with unaccounted costs, preloaded cards ensure that payments are made instantly while maintaining full control over spending.

Campaigns often require external support and a portion of marketing budgets is allocated to freelancers and contractors. Paying them should be as seamless as managing in-house expenses. With CashCentral cards, agencies can make instant payments without administrative delays, ensuring that projects stay on track.

Employee recognition is also important in this industry. GiftCentral cards offer a exible way to reward staff, allowing them to choose where and how to spend their incentives. Unlike traditional store vouchers, these cards can be used at any South African retailer. They can also be customised for use in competitions and giveaways at events, reinforcing brand presence and engagement.

“It makes my life easier. It’s easier to keep track of disbursements. I don’t have to use

slips because everything is tracked by the card management system. If you need it, you just have to pull a statement,” says Heleen Haywood of Specifying Dynamics.

IMPROVING CALL CENTRE PERFORMANCE WITH INSTANT INCENTIVES

Call centre employees work hard to manage queries, resolve issues and deliver exceptional customer service. Maintaining motivation in a high-pressure environment where professionalism is key can be challenging. Recognising their efforts not only boosts morale, but also improves overall productivity.

Complicated and time-consuming bonus structures are not always effective. PayCentral provides a simple alternative by allowing call centres to instantly reward top performers with virtual gift cards. These digital incentives eliminate the need for physical distribution, enabling managers to recognise outstanding employees in real-time.

DigiCentral cards offer the convenience of online voucher distribution while giving employees the freedom to shop at any local online retailer. A single click sends multiple cards to employees in different locations, making it easier to retain talent and create a workplace where performance is valued and rewarded.

Karen Nienaber, a PayCentral cardholder, says: “The card works great and is easy to use. It gives one the option to spend money anywhere and accommodates each person’s unique interests and needs. I prefer it to a voucher that you can only use at one place.”

Digital payments get a SARB boost

Does a central bank digital currency offer a “leapfrog” opportunity for South Africa or just another financial hurdle, asks TREVOR CRIGHTON

On 18 April 2024, the South African Reserve Bank (SARB) published its Digital Payments Roadmap, exploring the potential of increasing digital payment opportunities in South Africa. One of the elements considered in the roadmap

The objective of the SARB issued and used for South Africa as a complement to cash, which

default payment method for millions of South Africans – particularly in the informal economy. SARB has been at pains to point out that the existence of a feasibility study doesn’t mean that a CBDC will be implemented. In its “Digital Payments Roadmap Frequently Asked Questions” document, SARB says: “The outcome of the feasibility study will reveal the desirability and appropriateness of issuing a CBDC in South Africa. It will highlight the different CBDC design options and the potential policy and/or regulatory implications associated with these options.”

ACCELERATING ADOPTION

The roadmap aims to accelerate the pace of adoption and use of digital payments in the country through high-level action plans that include the expansion of the accessibility of the national payment system to ntechs and nonbanks, the provision of fast, low-cost innovative payment products and services, e-money and mobile money, the

Fast facts

The value of transactions processed via CBDC is forecast to grow by 260 000 per cent between 2023 and 2030, from around R1.8-billion to R3.9-trillion.

Source: www.statista.com

One hundred and thirty-four countries and currency unions, representing 98 per cent of global gross domestic product, are currently exploring a CBDC, and 65 countries are currently in the advanced phase of exploration: development, pilot or launch.

Source: www.atlanticcouncil.org/cbdctracker

modernisation of the payment infrastructure and access points to the underserved lower and middle market segments.

The role of CBDCs in the roadmap is underscored by several projects, including Project Dunbar, a 2022 joint project between SARB, the Bank for International Settlements Innovation Hub, the Reserve Bank of Australia, Bank Negara Malaysia and the Monetary Authority of Singapore. The project demonstrated the viability of a prototype common platform that could be established to enable cross-border payment settlement using multiple CBDCs. The platform proves that nancial institutions could use CBDCs issued by participating central banks to transact directly with each other digitally on a shared platform to reduce costs and increase the speed of processing of cross-border transactions. Still in progress is Project Khokha 2x, which is focused on wholesale CBDCs and stablecoins.

CENTRAL BANK SWOT ANALYSIS

A major strength of CBDCs is that the currencies and the rails they run on remove the commercial hindrance of “middlemen” in transactions, opening up inclusion and cutting costs.

A MAJOR STRENGTH OF CBDCS IS THAT THE CURRENCIES AND THE RAILS THEY RUN ON REMOVE THE COMMERCIAL HINDRANCE OF “MIDDLEMEN” IN TRANSACTIONS, OPENING UP INCLUSION AND CUTTING COSTS.

The weakness is that trust in CBDCs is low –largely due to the small number of people using them – which undermines their commercial usefulness. In mitigation, the opportunities they offer are immense – improving nancial inclusion in ways exponential to those of already-popular mobile money: allowing for cheaper and faster cross-border payments, improving tax collection, faster access to government grants and payouts and driving innovation in the payment product space. Digital currencies also require robust technological infrastructure, including reliable internet access and digital literacy. In the event of the introduction of a CBDC, South Africa’s technological disparities and high data costs could actually broaden the digital divide, rather than narrowing it.

Ashlin Perumall, partner at Baker McKenzie in Johannesburg, says one of the principal advantages of a CBDC is the opportunity to bring unbanked populations into the nancial mainstream – though he warns the nancial inclusion bene t is not a given. “To lay claim to this feature, the system for a CBDC needs to be designed with inclusion and within the context of societal usage in mind,” says Perumall. “Of ine access is one such design element, but there are more. For example, the system must be interoperable with the diverse payment mechanisms used in an economy and it must be accepted by merchants. It also requires simpli ed KYC (know-your-customer) and AML (anti-money laundering) processes. Such a design will not only foster inclusion,” Perumall says, “but also a competitive environment where private sector companies — banks and merchants — can both interoperate with the CBDC and compete among themselves to drive down the prices of services to individuals.”

In terms of threats, anything digital is open to hacking – no matter how secure the cryptology, the human element remains the easiest “in”. South Africa is regarded as the continent’s cybercrime hotspot, with a dramatic spike in phishing attempts, cases of identity theft, digital fraud, malware and ransomware denting public trust and adding to the onslaught for banks.

Perumall believes a CBDC needs to be designed with wider public policy goals in mind, when aimed at use in a retail context for the average person in day-to-day transacting. This may mean it needs to not only coexist

CBDC SUCCESSES

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SARB’S Digital Payments Roadmap: Towards Inclusive, Accessible, Effective and Sustainable Digital Payments in South Africa

with traditional private money (such as bank deposits or cash), but also complement and function harmoniously with such alternate forms of money to be useful in emerging markets. “Such a design will foster not only inclusion, but also the ability of central banks to leverage existing nancial infrastructure, such as the customer management and ancillary services offered, for example, with bank deposits as a form of money. Banks are set up to provide a host of bolt-on services such as account management, helpdesk support, fraud reporting and more,” he says. Central banks are ill-suited to address these ancillary needs on their own or deal with volumes of retail clients, which banks have the administrative and cybersecurity capacity to address. The “hybrid” or “mediated” CBDC approach, where the central bank acts as the record keeper of balances and transactions, but banks retain their role as the distributors of money, could be a much better model than a “direct” retail CBDC model.

Central bank digital currency (CBDC) is already in place in some territories, with varying degrees of success. In the Bahamas, the pioneering Sand Dollar is gaining traction, Jamaica is making progress with its JAM-DEX, while Nigerians remain cool on the eNaira.

The Bahamas’ Sand Dollar became the first CBDC in the world to go beyond the pilot stage and achieve an official launch, in 2020. In July 2024, work began on new regulations that would require the commercial banking system to offer the Sand Dollar, while the Central Bank is now working on achieving full interoperability between its various wallet providers.

In China, the People’s Bank of China’s e-CNY project was piloted in 2019. The pilot has about 260 million wallet users and has been piloted at provincial level in 17 regions. Deputy governor of the People’s Bank of China Lu Lei said in June 2024 the digital yuan had carried out transactions totalling 7-trillion yuan (R17.9-trillion) – nearly quadruple the 1.8-trillion yuan recorded by the end of June 2023. Nigeria launched the eNaira as Africa’s first digital currency in October 2021, with 500-million eNaira, equivalent to the value of R21.8-million, minted at launch. According to Nairametrics.com, the eNaira made up 0.36 per cent of the total currency in circulation as of March 2024. A World Bank report revealed that the low adoption could be attributed to a combination of slow eNaira wallet downloads among retail users, limited merchant utilisation, low public trust and poor technological reliability.

“THE SYSTEM FOR A CBDC NEEDS TO BE DESIGNED WITH INCLUSION AND WITHIN THE CONTEXT OF SOCIETAL USAGE IN MIND.” – ASHLIN PERUMALL

Follow: Ashlin Perumall www.linkedin.com/in/ashlinperumall

Ashlin Perumall

DIGITAL PAYMENTS WILL CHANGE THE FACE OF AFRICA

While challenges to adoption remain, the increasing acceptance of digital payments technologies in Africa will fast-track financial inclusion and growth, writes RODNEY WEIDEMANN

There can be little doubt that the ability to perform digital payments has improved global commerce and nance by providing companies and consumers with secure transactions that are faster and more convenient. This, in turn, enables these businesses to create new business models.

Nedbank, for instance, has actively championed innovations such as PayShap, South Africa’s real-time payment solution aimed at driving nancial inclusion. The bank was one of the rst to pilot PayShap Request and has now rolled it out across its Money app and Avo SuperShop platforms, making real-time digital transactions even more accessible.

Electronic transactions facilitate the exchange of money between parties in a way that bypasses the traditional reliance on physical currency. Not only does this streamline

nancial processes, but crucially, it also allows for instantaneous transfers unconstrained by geographical boundaries.

In fact, little more than a decade ago, the fastest way to move money on the same day between two countries was probably to y from one to the other and deliver it yourself. Digital payments allow companies to initiate a secure, real-time payment that’s sent and received within seconds.

The drivers behind digital include the large-scale adoption of smartphones by consumers, along with new technologies like cloud-based platforms, the adoption of application programming interfaces (APIs) and the adoption of the global payment messaging standard ISO 20022, which provides a common language for transactions between anyone, anywhere.

Nedbank is at the forefront of leveraging API technology through its API Marketplace, collaborating with ntechs to deliver innovative payment solutions and seamlessly integrating tools such as PayShap Request for consumers and merchants. According to Dayalan Govender, Nedbank’s managing executive for solution innovation, the growth in popularity of digital channels and payments is indicative of the role that South Africa’s digital payments market is increasingly playing, serving as a catalyst for economic growth and driver of its rapidly evolving digital economy.

A TRANSFORMATIVE INFLUENCE

“The advent of digital payments is revolutionising the nancial landscape in numerous impactful ways, with increased nancial inclusion a standout bene t,” says Govender. “Digital technology has made nancial services more accessible to those who were previously unbanked or underbanked. Real-time payments, for instance, are integrating millions into the nancial system,

NEDBANK IS AT THE FOREFRONT OF LEVERAGING API TECHNOLOGY THROUGH ITS API MARKETPLACE, COLLABORATING

WITH FINTECHS TO DELIVER INNOVATIVE PAYMENT SOLUTIONS.

creating new opportunities for nancial institutions and enhancing nancial security.

“At Nedbank, we have been proactive in promoting account-to-account payments through PayShap to support the national goal of advancing nancial inclusion ,” says Govender.

“Digital payments boost ef ciency and convenience by streamlining transactions, making them quicker and easier,” he explains.

“This ef ciency bene ts both consumers and businesses by cutting down the time and costs linked to traditional payment methods. For example, real-time payments enable instant fund transfers, which can enhance liquidity for businesses and provide consumers with immediate access to their money. Nedbank’s recent implementation of PayShap Request across its Money app and Avo SuperShop platforms further simpli es real-time payment processes, signi cantly reducing the dependence on cash.

“The rise of digital technology has driven signi cant innovation and new business models. We’ve seen advancements in biometric authentication and arti cial intelligence (AI)-driven fraud prevention, enhancing security and creating new opportunities in nancial services. For instance, Buy Now, Pay Later (BNPL) services are transforming consumer purchasing behaviour and rede ning credit in sectors such as retail, healthcare and travel.”

The growing adoption of digital payments is changing consumer behaviour and their interaction with nancial services. The convenience of mobile wallets, contactless payments, and peer-to-peer platforms drives this shift. Govender notes that this behavioural change also in uences how businesses operate to meet the demand for digital payment options.

“While it is to be expected – particularly in Africa – that cash remains prevalent, as digital payments become increasingly popular, cash usage is declining. Nedbank expects this trend to continue as digital alternatives become more widespread. However, a hybrid model where cash and digital payments coexist is likely to persist, catering to different consumer needs. Nedbank is actively enabling this transition by making digital options easy and accessible for all clients,” Govender says.

Digital payments technology is having a globally transformative economic impact,

contributing to economic growth by improving market ef ciencies and fostering nancial inclusion. In addition, they make it easier for businesses to operate globally by enabling cross-border transactions.

What is clear from the above is that the shift towards digital payments is creating a more inclusive, ef cient and innovative nancial landscape. There is no doubt that this is an exciting time for both consumers and businesses as they continue to navigate these changes and bene t from these technologies.

OVERCOMING CHALLENGES FOR DIGITAL PAYMENTS IN AFRICA

Implementing new technology in Africa comes with unique challenges that must be addressed for digital payments to succeed.

• Infrastructure deficiencies: many regions lack essential infrastructure, such as reliable internet access and electricity, which hampers the feasibility of digital payments, particularly in rural areas where most unbanked individuals reside. “Many parts of the continent lack the requisite infrastructure – including reliable internet access and electricity – to make digital payments a feasible option,” says Govender. “This impacts the implementation and maintenance of the necessary systems, especially in the rural areas where the majority of the unbanked live.”

• Network reliability: unstable mobile networks disrupt digital transactions, leading to failed payments and delays, which deter consumer adoption.

• Security concerns: with the rise of digital payments, fraud and cyberattacks are increasing. Robust security measures, including encryption and multifactor authentication, are crucial to building trust in digital systems. “Naturally, security remains a challenge, with fraud and cyberattacks increasing as digital uptake occurs. It is vital

that robust deterrence and strong security measures are put in place if banks hope to build large-scale trust in digital payment systems,” adds Govender.

• Digital literacy: low levels of digital literacy across Africa hinder adoption as many people are unfamiliar with digital payment platforms or wary of new technologies.

• Regulatory complexity: Africa’s regulatory environment is fragmented and inconsistent, posing challenges for businesses seeking to innovate and expand digital payment services, especially for cross-border transactions. Govender highlights that Africa’s diverse landscape, with its 54 countries, multiple currencies, and various languages, presents signi cant challenges for conducting business. This market fragmentation complicates the implementation of a universal solution for digital payments.

• Cost barriers: high costs of digital payment services can be prohibitive for low-income users. Financial institutions must lower transaction fees to drive wider adoption. “Remember, many Africans rely on remittances as a means of survival,” Govender explains, “and the costs associated with this are still prohibitive for both sender and receiver.” Remittances, a vital source of income for many Africans, remain costly for both senders and receivers.

Despite these challenges, progress is being made. Large-scale adoption will depend on collaborative efforts across the nancial ecosystem, including regulators, telecom providers and nancial institutions. Banks such as Nedbank are closing these gaps through partnerships, ntech collaborations and scalable digital infrastructure tailored to African markets.

MASSIVE ADVANTAGES

“The advantages of transitioning to digital payments are substantial, offering numerous bene ts to consumers in Africa,” Govender says. “Enhanced convenience and accessibility allow transactions to be conducted swiftly and effortlessly at any time,

“WHILE AFRICA’S UNIQUE CHALLENGES HAVE MADE THE ADOPTION OF DIGITAL PAYMENT SOLUTIONS MORE DIFFICULT, AS THIS ARENA BECOMES MORE INTEGRATED, SECURE AND USER-FRIENDLY, THIS WILL CHANGE

ORGANICALLY.” – DAYALAN GOVENDER

from any location. Digital payments facilitate seamless operations across different time zones, providing businesses and consumers with 24/7 accessibility.”

Govender points out that the increased nancial inclusion delivered in this way makes it possible to provide nancial services to underserved populations, including those in remote areas. A good example is how mobile money services have boosted nancial inclusion in many developing countries.

“While the unbanked may struggle with the costs associated with digital payments,” continues Govender, “these are still signi cantly lower than the transaction fees for more traditional methods such as cash or cheques, meaning businesses and consumers should nd it a more cost-effective method.

“These systems signi cantly enhance cash ow for businesses through real-time transactions that enable the instant transfer of funds, ensuring consumers have immediate access to their money.”

Furthermore, Govender emphasises that by making transactions more ef cient and inclusive, this technology drives overall economic growth. It facilitates seamless cross-border transactions and opens new markets for businesses.

“Nedbank, for instance, has integrated features such as PayShap Request and various other payment innovations to support more ef cient payment collection and improved liquidity, particularly for small

businesses and merchants operating in cash-heavy environments.”

A RIPE MARKET

Despite the many challenges outlined, there is little doubt that the African market is ready for this technology. Govender highlights that there is a whole range of factors demonstrating just how ripe the continent is for digital payments solutions.

“To begin with, Africa has a high rate of mobile phone usage, to the extent that the majority of Africans use their mobile devices as the primary method of accessing the internet. Such widespread mobile penetration creates the ideal foundation for mobile-based payment solutions.”

Tied to the large mobile phone base is that internet infrastructure is becoming increasingly ubiquitous across the continent, opening up more access to online services. The more people who have access to reliable internet connectivity, the more the potential user base for online payments grows.

Africa has long been known to have the youngest economically and digitally active population – a group that is far more predisposed to adopting new technologies. Govender explains that this demographic is driving the demand for innovative digital payment solutions.

Achieving real success requires tangible government and regulatory support. Fortunately, there is widespread recognition

AS BNPL BECOMES MORE MAINSTREAM, IT WILL LIKELY DRIVE CHANGES IN CONSUMER PURCHASING BEHAVIOUR

AND PAYMENT

of the bene ts of digital payments, and most governments are implementing supportive policies and regulations. “This includes creating regulatory sandboxes to foster innovation and ensure consumer protection, along with inter-regional bodies to drive real-time payments across borders,” notes Govender.

Other driving factors identi ed by Govender include the robust growth of African economies, which leads to increased consumer spending and a greater need for ef cient payment systems. The rise of e-commerce is also contributing to the demand for online payment solutions. One of Africa’s key strengths is its vibrant ntech ecosystem with numerous start-ups developing innovative payment solutions. These regional businesses leverage technology to meet local market needs. Nedbank, for example, has long prioritised partnerships with ntech innovators, offering open APIs through its API Marketplace to support tailored, scalable digital solutions. As investment in this sector increases, more

ntechs, banks and tech companies will begin to serve underserved markets.

“These factors,” suggests Govender, “lay a fertile foundation on which the growth of online payments in Africa can be built. While the continent faces unique challenges, it is also rich with opportunity for the kind of innovative solutions that can create the environment to drive further adoption and transformation.”

THE FUTURE OF DIGITAL

Looking ahead, the near- to medium-term future of the digital payments space looks promising and dynamic. Nedbank has identi ed several key trends and developments that it anticipates will shape the landscape moving forward.

Firstly, Govender highlights the growing popularity of real-time payments (RTP) as consumers increasingly demand instant transactions. PayShap has made signi cant strides in making RTP more accessible and widespread. Nedbank, through its phased rollout of PayShap Request and integration into core platforms, has showcased how RTP can be seamlessly embedded into everyday nancial life. This trend is expected to continue, with more nancial institutions and businesses integrating RTP to meet global consumer expectations.

The expansion of digital wallets and contactless payments is also anticipated, driven by the dual demands of convenience and security. “We are witnessing a growing adoption of mobile wallets like Apple Pay, Google Pay, and Samsung Pay,” Govender notes, “a shift supported by advancements in near- eld communication technology and the increasing acceptance of digital wallets by merchants.

“BNPL services are expected to expand into new sectors such as housing, utilities, medical and travel,” he adds, “particularly due to their growing popularity among younger consumers for their exibility and ease of use.” As BNPL becomes more mainstream, it will likely drive changes in consumer purchasing behaviour and payment preferences. Nedbank is proactively exploring ways to integrate responsible BNPL options across key lifestyle sectors, aligning with clients’ evolving nancial needs.

AI is playing a pivotal role in enhancing payment security and personalisation. Govender anticipates that AI-driven fraud

detection systems will become increasingly sophisticated, reducing fraud risk while improving the overall security of digital payments. Nedbank has already begun leveraging AI capabilities to proactively detect anomalies and ensure greater payment integrity across its digital channels.

The eld of cross-border payments is experiencing rapid innovation, thanks to the creativity of ntech platforms that now offer real-time solutions competing with traditional banks. As businesses globalise, the rise of digital currency is driving demand for ef cient and cost-effective cross-border payment options. Govender comments that Nedbank continues to engage in this space through its API Marketplace, enabling ntech and merchant partners to build integrated, cross-border-ready solutions that align with local regulatory and operational needs.

Regulatory changes are also fostering the growth of digital payments, with regulators focusing on bringing nonbank providers into the regulatory fold. Expanding the scope of regulation will enhance consumer protection and nancial stability. Driving compliance efforts among payment providers will be key to shaping the competitive landscape moving forward.

“Nedbank plays an active role in these industry discussions, helping shape frameworks that balance innovation with accountability,” Govender explains.

Finally, embedded nance – where nancial services are integrated into non nancial platforms – is gaining traction. This trend allows businesses to offer seamless payment experiences within their ecosystems, enhancing customer engagement and loyalty. Nedbank’s investment in open banking infrastructure and developer-friendly APIs positions it well to enable these integrated journeys across retail, health, travel and other key verticals.

“While Africa’s unique challenges have made the adoption of digital payment solutions more dif cult, as this arena becomes more integrated, secure and user-friendly, this will change organically. Ultimately, advancements in this space will not only improve the payment experience for consumers, but will also open up a host of new opportunities for businesses and nancial institutions,” concludes Govender.

RECENT TECHNOLOGICAL INNOVATIONS

• Artificial intelligence and machine learning are being used to enhance fraud detection and provide personalised payment experiences. Machine learning algorithms are assisting Nedbank to analyse transaction patterns in real-time to identify suspicious activities and protect its customers.

• Contactless payments and wearable technology devices are increasingly being integrated with payment capabilities, offering convenience on the go and superior client experience, driving the surge of digital payments.

• Buy Now, Pay Later (BNPL) services allow consumers to make purchases and pay for them in instalments. This model is gaining popularity, especially among younger consumers.

• Open banking and open finance has fostered the collaboration of banks and third parties through the Nedbank API Marketplace, giving rise to sophisticated solutions for customers while fostering innovation and competition in the financial services sector.

• Blockchain technology provides a decentralised and secure way to conduct transactions. Innovations like smart contracts are making transactions more transparent and efficient for business-to-business transactions.

THE FUTURE OF CRYPTO PAYMENTS IN SOUTH AFRICA

Will cryptocurrencies transform the way we think about money? BRENDON PETERSEN tries to separate the hype from reality

South Africa’s cryptocurrency landscape is evolving beyond investment speculation. Recent data shows over R10-million in crypto payments processed through Luno Pay since September 2023, with 31 000 merchants now accepting digital currencies through the Zapper network. From pharmacies and airlines to fuel stations and educational institutions, the infrastructure for crypto transactions is expanding rapidly in Africa’s most developed economy.

This shift comes as South Africa ranks among the top 10 countries globally for cryptocurrency adoption, according to Chainalysis. Yet signi cant obstacles remain before digital currencies can challenge traditional payment systems in a country where regulatory frameworks are still developing and technical limitations persist.

REGULATORY PROGRESS DRIVES CONFIDENCE

This progressive approach has created a foundation for increased adoption; however, challenges remain.

Christo de Wit, South Africa country manager at Luno, says: “South Africa’s regulatory approach to crypto is progressive and includes a focus on customer protection. This bodes well for crypto adoption generally, and we are seeing growth in crypto payments on our Luno Pay app.

“However, guidance is required in some areas, such as the security measures required for crypto payment systems, speci c record-keeping requirements for crypto transactions and standards for customer veri cation when accepting crypto payments.”

FROM SPECULATION TO TRANSACTION

Did you know?

The number of crypto users in South Africa is projected to reach 6.1 million this year, with the market expected to achieve revenue of R6.8-billion.

Source: Statista

Dis-Chem pharmacies and FlySafair to fuel stations, educational institutions, bill payments, parking, donations and more.”

Market projections support this growth trajectory.

forefront of crypto regulation on the continent.

be licenced, while the South African Reserve Bank (SARB) has classi ed cryptocurrencies co-founder and CEO of exchange by trade volume. “Many jurisdictions around the world are constructive discussions about a decade, but framework for the country.”

Luno Pay has facilitated over 20 000 payments to more than 700 merchants since its launch in September 2023. The platform reports that 65 per cent of customers return for additional transactions, suggesting growing con dence in cryptocurrency as a payment method.

According to Statista data cited by Luno, experts expect the crypto payments market to expand from R29.6-billion in 2023 to R88.8-billion by 2030.

Integration with established payment networks has accelerated adoption. “South Africans can pay with crypto almost anywhere in the country using Zapper and Luno Pay,” explains de Wit. “Crypto payments are accepted at merchants in the Zapper payments network nationwide, ranging from

STABLECOINS: THE BRIDGE TO MAINSTREAM ADOPTION

Price volatility remains the most signi cant barrier to merchant acceptance of cryptocurrencies. Stablecoins – digital currencies pegged to stable assets such as the US dollar or gold – offer a practical solution to this challenge.

“Although Bitcoin and Ethereum are well-known cryptocurrencies with large market capitalisations, many African crypto transactions are stablecoins. In fact, according to Chainalysis, 43 per cent of all

“STABLECOINS ARE PEGGED TO FIAT CURRENCIES AND ELIMINATE THE VOLATILITY AGAINST FIAT CURRENCIES OF CRYPTO ASSETS SUCH AS BITCOIN.

ALLOWS PAYMENT-USE CASES TO GROW WITHOUT THE WORRY OF MISMATCHED INCOME AND EXPENSES BY MERCHANTS.” – FARZAM EHSANI

Farzam Ehsani

Christo de Wit

“SOUTH AFRICA’S REGULATORY APPROACH TO CRYPTO IS PROGRESSIVE AND INCLUDES A FOCUS ON CUSTOMER PROTECTION. THIS BODES WELL FOR CRYPTO ADOPTION GENERALLY.” –

crypto volume in Africa was stablecoins,” de Wit explains.

Ehsani agrees: “Stablecoins are pegged to at currencies and eliminate the volatility against at currencies of crypto assets such as bitcoin. This allows payment-use cases to grow without the worry of mismatched income and expenses by merchants.”

SARB is actively engaging with this trend. Last year, it announced progress on its central bank digital currency (CBDC) work through Project Khokha 2x, focusing on both CBDC and bank-issued stablecoins for regional African payments. Additionally, the bank established a two-year time frame for supporting domestic stablecoins within a regulatory sandbox.

TECHNICAL CHALLENGES AND SOLUTIONS

Speed and scalability limitations hinder broader cryptocurrency payment adoption, notes de Wit. “The Bitcoin blockchain is currently too slow and costly to be viable as a global payments solution, with the layer-1 blockchain able to process roughly seven transactions per second compared to Visa’s twenty-four thousand.”

Layer-2 solutions, such as the Lightning Network, are addressing these constraints, with Luno reporting an estimated 1 212 per cent growth in routed lightning transactions between 2021 and 2023. This technology enables faster processing – up to one million transactions per second – and creates pre-generated invoices that streamline merchant operations.

Beyond technical enhancements, broader infrastructure needs persist. “While this technology has great promise for humanity, it requires social adoption, which is a cultural phenomenon and takes time,” Ehsani explains. “The user experience also needs to improve and many companies are working on this.”

FINANCIAL INCLUSION: THE BROADER IMPACT

Cryptocurrency payments offer particular advantages for both South Africa’s underbanked population and cross-border transactions.

“Blockchain-based cryptocurrencies can solve the problem of the underbanked

CHRISTO DE WIT

and nancially underserved, especially migrant workforces,” de Wit argues. “Bitcoin was initially designed to facilitate peer-to-peer payments over the internet without an intermediary, so when nancially underserved clients use blockchain-based cryptocurrencies, there is no intermediary. It’s a match made in heaven.”

For cross-border payments and remittances – currently burdened by fees of 5–7 per cent – cryptocurrency offers substantial savings potential while removing barriers to international transactions.

THE ROAD AHEAD

While early adopters including Pick n Pay already accept cryptocurrency payments, widespread adoption remains a work in progress. As Ehsani observes: “We are still in the early stages of discovering what crypto assets offer to humanity.”

Tax challenges also need resolution. “Making a payment with cryptocurrency is still considered a taxable event,” cautions de Wit. “This can complicate tax season calculations, especially when the cryptocurrency is used for payments and trading.”

Nevertheless, with regulatory frameworks developing, infrastructure improving and consumer interest growing, cryptocurrency payments in South Africa appear positioned to transition from novelty to necessity in the years ahead.

Fast fact

As of 2024, only 10 per cent of South African online merchants accept crypto payments, with Bitcoin and USDT being the most used cryptocurrencies. South Africa ranks among the top 10 countries globally in crypto adoption, according to Chainalysis’s 2023 Global Crypto Adoption Index.

Source: Chainalysis

THE BIGGEST HURDLES TO CRYPTO ADOPTION IN SOUTH AFRICA

Despite growing interest in cryptocurrency, several challenges hinder its adoption as a mainstream payment method in South Africa. Regulatory uncertainty remains a primary concern, with the South African Reserve Bank maintaining a cautious stance while the Financial Sector Conduct Authority has begun licensing crypto asset service providers.

As Christo de Wit of Luno notes: “Crypto regulation in South Africa is still evolving and the current framework does not explicitly address crypto payments. Uncertainty around exchange control regulations, along with the upcoming implementation of the Travel Rule, will require further development.”

Tax complexities present another significant hurdle. Unlike some countries that offer exemptions for small transactions, South Africa currently applies standard tax rules to all crypto payments.

Price volatility makes crypto payments unpredictable for merchants, though stablecoins offer a potential solution. Technical limitations also restrict adoption.

Infrastructure gaps, including limited payment gateways, inadequate user interfaces and merchant education, further slow mainstream acceptance. Farzam Ehsani of VALR says: “The user experience also needs to improve and many companies are working on this.”

Follow: Farzam Ehsani www.linkedin.com/in/farzam-ehsani Christo de Wit www.linkedin.com/in/christodigital

GOING BEYOND PAYMENTS WITH NEXT-GENERATION SOLUTIONS

The latest generation of point-of-sale devices offers more than an efficient system of payment – there are many peripheral advantages for small and large retailers alike, writes RODNEY WEIDEMANN

Digital transformation, the growth of cloud services and the evolution of mobile technology have combined to lead to the introduction of a new generation of point-of-sale (POS) systems. These solutions offer retailers far more than simply a device to process transactions – today’s devices include real-time data access across various locations, enable remote management, seamlessly integrate with other business tools and enhance the customer experience.

According to Rob van Rensburg, MD of TitanPOS, in the past, if a business wanted a speedpoint machine, which traditionally used a specialised, embedded operating system, there were multiple forms to ll in, ongoing fees and monthly rental costs as these devices were provided by the big ve banks.

“Since then, new entrants to the market have brought Android devices into the country, which can be obtained with far less red tape and general hassle, although their transaction fees are higher. Additionally, the payments may take a little longer to re ect, but these devices offer the advantage that they can be used even in informal environments such as ea markets,” he says.

Donn Engelbrecht , managing director of African Resonance Business Solutions, points out that Android POS terminals have created new opportunities for the way consumers transact with merchants.

“Improved user experiences, coupled with the introduction of value-added services at the

point of interaction, have positively in uenced retail businesses. There is no doubt that the introduction of Android POS terminals has created a clear opportunity to enable growth in electronic payments,” he notes.

“Further convergence between POS terminals, electronic cash register systems, mobile and cloud services will provide additional opportunities and use cases for innovative payment solutions, which will continue to enhance retail businesses.”

NEXT-GENERATION IMPROVEMENTS

According to Carl Wazen, co-founder at Yoco, the company’s handheld devices and mobile app allow small businesses to run their entire operation in the cloud, unlocking ef ciencies and control, while also saving time and money.

“Among the key bene ts are real-time sales insights, where management can instantly see what’s selling, track peak sales times and make adjustments on the y, and instant reporting, enabling them to compare current scenarios to previous periods, identifying trends and optimising performance,” he states.

“Next-generation POS systems also assist with staff management as one can set permissions, track staff performance and ensure accountability, provide automated reconciliations, saving hours each week and eliminating cash-up errors, and enable stock management, providing knowledge around what is in stock and what needs replenishing.”

He adds that these devices also allow for faster transactions, reducing slow checkouts that lead to long queues and frustrated customers.

Fast fact

One of the pioneers in bringing Android (as opposed to Windows-based) handheld devices to the small business market, Yoco currently has over 200 000 active merchants using multiple Android devices in South Africa.

Source: Yoco

“Next-generation POS devices like ours tend to leverage dual SIM and Wi-Fi, along with tap-to-pay technology, to process transactions in under two seconds,” suggests Wazen.

“Additional features, such as built-in product catalogues, enable one-click checkouts, eliminating the need to enter amounts manually. This saves valuable time for both merchants and customers. Also, these next-generation devices receive regular software updates via the cloud, meaning they are continuously improving.”

Engelbrecht indicates that the new Android POS terminals positively impact both retail businesses and consumers. “Payments are now frictionless. For example, ‘contactless payment’ has changed the experience and speed of transactions, which now occur at lightning speed. The new Android architecture has resulted in numerous intuitive system interfaces that were never possible previously.

“THE INTRODUCTION OF ANDROID POS TERMINALS HAS CREATED A CLEAR OPPORTUNITY TO ENABLE GROWTH IN ELECTRONIC PAYMENTS.” – DONN ENGELBRECHT

Donn Engelbrecht

Rob van Rensburg

Carl Wazen

“Enhanced communication modules, paired with Wi-Fi connectivity, have resulted in near-instantaneous payment processing. What we have seen is that the number of ‘false declines’ or transaction failures has been dramatically reduced as a result of these enhancements,” he explains.

Remote management is critical from an operational cost perspective, continues Engelbrecht, as this reduces physical site visits. Equally important is automating asset tracking with a purpose-built estate management solution. “The introduction of geofence technology has enabled African Resonance to determine and track the location of POS terminals deployed in the eld. This dramatically reduces the risk to merchants and banks in the event of devices being stolen, lost or misplaced.

“Ensuring elegant and frictionless integration with the merchant’s peripheral business hardware and/or services means the merchant can focus on their core business while bene tting from reconciliation ef ciencies from an operational perspective,” he adds.

AN EXCITING FUTURE

Van Rensburg notes that with the Android platform on payment devices, the company has found the requirements for customers tend to go beyond transactions – notably the making or recording of a sale and the taking of payment. “When it comes to electronic POS devices, what happens afterwards bodes for an exciting future. These devices include additions such as inventory management, reports related to daily stock control and even the generation of nancial reports,” he explains.

“The traditional e-POS environment has been hybridised to take advantage of an ever-changing landscape. This enables the incorporation of the bene ts of cloud-based data warehousing and reporting and the inclusion of modern/Android payment devices, while providing the retailers with expected transactional redundancy at store and till level.”

Fast fact

Adding artificial intelligence to point-of-sale (POS) systems will improve payment terminals, customer data management and inventory tracking. With this, retail businesses can use the POS for more than merely processing sales – they can use these devices to gather useful customer insights, predict trends and make more informed decisions.

Source:

African Resonance

While it has had no real impact as of yet, he feels that the introduction of arti cial intelligence (AI) is only a matter of time.

“I foresee the future of AI in this space being mostly based around analytics, as AI will be able to analyse sales data and trends and provide deeper insight into customers, helping retailers improve their customer experience. Custom reporting will also be impacted by AI, moving forward,” he says.

Wazen, meanwhile, notes that with cloud-based application programming interfaces, different systems can now connect seamlessly.

“Early on, Yoco ensured that its Neo Touch card machines and Yoco POS software worked

SELF-CHECKOUT SYSTEMS

Self-checkout point-of-sale (POS) systems, while quite effective in the fast-food industry, ultimately rely on a high degree of customer honesty in the retail segment. The challenge here is that even in the more mature developed markets, retailers are finding customers taking chances. This, says Titan POS’s MD, Rob van Rensburg, could, for example, mean swapping barcode labels for cheaper items and scanning these instead.

“Whether or not artificial intelligence will ultimately be combined with optical scanning to be capable of determining that the item scanned is the correct one at the correct price, remains to be seen,” he says.

“Furthermore, particularly in South Africa, with its job creation challenges, the idea of reducing jobs through the implementation of automation is definitely the elephant in the room. Anyone considering such a solution has to ask the pertinent question: do we employ people or computers?”

together effortlessly so business owners wouldn’t have to juggle multiple systems. This integration saves time, eliminates errors and enables smarter reporting.”

Looking ahead, this is undoubtedly an exciting time for technology businesses.

AI is accelerating feature development, improving customer experience and enhancing data-driven insights. “Over time, AI will continue to optimise business operations, offering smarter automation, predictive analytics and more personalised customer interactions,” Wazen concludes.

“WHEN IT COMES TO ELECTRONIC POS DEVICES, WHAT HAPPENS AFTERWARDS BODES FOR AN EXCITING FUTURE. THESE DEVICES INCLUDE ADDITIONS SUCH AS INVENTORY MANAGEMENT, REPORTS RELATED TO DAILY STOCK CONTROL AND EVEN THE GENERATION OF FINANCIAL REPORTS.” – ROB VAN RENSBURG

Follow: Donn Engelbrecht www.linkedin.com/in/donn-engelbrecht-62a01a82 Carl Wazen www.linkedin.com/in/carlwazen

THE BUY NOW, PAY LATER BOOM

The rapid adoption of Buy Now, Pay Later in South Africa has been one of the biggest disruptors in the financial services and e-commerce sectors. So how is this shaping the retail sector and consumers’ habits? THANDO PATO speaks to the experts

Over the past six years, Buy Now, Pay Later (BPNL) platforms have provided South African consumers with an affordable, accessible and services online and, where available, in-store.

BNPL RANDS AND CENTS

• In 2023, Payflex reported it made R7.5-billion worth of transactions since its inception in 2018.

• PayJustNow reports it made R73-million in BNPL fees between January and June 2024, an increase of 150 per cent from the same period in 2023.

In South Africa, Pay ex and PayJustNow

payment systems. Pay ex offers exibility and choice and allows customers to choose their payment terms. Customers can either pay in four interest-free instalments over six weeks or three interest-free instalments over three paydays, with more exible payment options coming.

“We offer customers the opportunity to purchase higher ticket items without feeling the immediate pinch. Customers can split larger invoices over a repayment term that suits their budgets,” he explains.

• BNPL gross merchandise value in South Africa is projected to reach R32.4-billion by 2029.

• BNPL adoption is forecasted at compound annual growth rate of 10.6 per cent between 2024 and 2029.

Sources: https://techcentral.co.za and https://finance.yahoo.com/news

Pay ex owns 65 per cent

“Pay ex is available

Hot on its heels is PayJustNow, launched in 2019, which according to COO Dean Hyde has more than 2.5 million active customers and almost 3 000 directly integrated merchants. “PayJustNow was the rst BNPL provider in South Africa to offer payments in three interest-free

“CUSTOMERS

instalments, aligned with the typical salary cycle of South Africans.

“Today, our value proposition is centred around that localised mindset and our ability to evolve our platform to meet the South African shopper’s needs. The majority of PayJustNow customers have access to other

CAN EITHER PAY IN FOUR INTEREST-FREE INSTALMENTS OVER SIX WEEKS OR THREE INTEREST-FREE INSTALMENTS OVER THREE PAYDAYS, WITH MORE FLEXIBLE PAYMENT OPTIONS COMING.” –

BRUCE MCINTOSH

Bruce McIntosh

“OUR BNPL PRODUCT IS DESIGNED TO AVOID CONTRIBUTING TO RISING CONSUMER DEBT. THE MODEL ACTUALLY REWARDS GOOD FINANCIAL BEHAVIOUR BECAUSE USERS ARE GRANTED APPROPRIATE SPEND LIMITS ALIGNED WITH AFFORDABILITY.” – DEAN HYDE

credit facilities, however, they choose to make use of BNPL so they can avoid interest and fees,” he explains.

Since the launch of Pay ex and PayJustNow, several other players have entered the market, including Float, HappyPay and TymeBanks’ MoreTyme.

THE IMPACT ON CONSUMERS AND RETAIL

The 2023 Online Retail Report showed that in 2023 online sales in South Africa grew to R71-billion, a 29 per cent increase from 2022. Projections for the sector for 2026 are more than R100-billion. In 2023, online retail sales accounted for 6.5 per cent of all retail sales in the country.

McIntosh says that a 2023 McKinsey report cited: “BNPL adoption among millennials and Gen Z consumers is expected to fuel market expansion as these demographics increasingly prioritise affordability and access over upfront payments.”

According to Hyde, BNPL is changing consumer habits and the retail landscape. “Not only is it driving more transactions, but also larger basket sizes and greater customer retention. We’ve experienced over 100 per cent growth in transaction value every year since inception. If you consider that PayJustNow’s customer base is growing by more than 100 000 new customers every month, while eight in ten users are repeat customers, it is safe to say that the payment method is rapidly changing how consumers spend.

“PayJustNow’s value proposition is centred on evolving our platform to meet the South African shopper’s needs. For example, our Deals Platform, available online and via our app, serves the needs of a South African audience who are driven by value and love to shop promotions. Here, we’re able to connect retailers with customers actively looking to shop their items on promotion.”

Most BNPL providers are currently offering consumers the opportunity to buy an array of goods and services barring food. McIntosh says that most Pay ex users purchase fashion and apparel, tech, electronics and homeware.

MANAGING CONSUMER RISK

Like traditional credit lenders, a consumer’s credit history determines their eligibility for BPNL credit. Hyde says PayJustNow is lucrative for merchants because they receive 100 per cent payment of purchases upfront.

Regarding managing the rising risk of consumer debt, he says: “Our BNPL product is designed to avoid contributing to rising consumer debt. The model actually rewards good nancial behaviour because users are granted appropriate spend limits aligned with affordability and, in some instances, must pay off one product before they can purchase another. With each purchase, they build a better credit pro le without using revolving credit.

“When it comes to customers with thin credit pro les, we assess their affordability and grant them a small facility upfront to allow them to prove their nancial behaviour, with a view to extend their available facility once they’ve successfully paid off their purchases.”

For customers defaulting on their payments? “Customers are noti ed the day before their payment is due to be collected. If we fail to collect a payment, we try and collect from the customer again, twenty-four hours later. Should the second attempt also be unsuccessful, we try collection again in seven days. Throughout this process we communicate with the customer,” he explains McIntosh says Pay ex also has stringent vetting processes to ensure customers are not over-indebted. “Pay ex acquires data from credit bureaus to assist with determining what facilities customers should be offered.

THE GLOBAL IMPACT OF BNPL

According to the Buy Now Pay Later (BNPL) Services Global Market Report 2024:

• The BNPL services market grew from R118.6-billion in 2023 to R153.4-billion in 2024 at compound annual growth rate (CAGR) of 29.3 per cent.

• BNPL is expected to increase to R432.2-billion in 2028 at a CAGR of 29.6 per cent.

The United States, the United Kingdom, Germany, Brazil and India are some of the largest BNPL markets globally.

Source: www.businesswire.com/news/ home/20241003422751/en/Buy-Now-PayLater-BNPL-Services-Global-Report-2024

We have also recently started sending data back to the credit bureaus to ensure other nancial institutions can see Pay ex’s exposure to customers.”

In addition, McIntosh says Pay ex customers are only offered facilities they can afford, based on their credit score and continuous payment behaviour with Pay ex. While payments are interest-free, consumers are charged penalty fees for late payment.

“The fee is capped for each transaction and does not accumulate interest. Pay ex regularly communicates with its customers to ensure they are aware of upcoming payments and noti es them of missed payments, which they have twenty-four hours to settle. Only after this is a late fee charged,” he explains.

Did you know?

BNPL is now the fifth-most widely used payment method on e-commerce platforms.

Source: Meetanshi

Follow: Bruce McIntosh www.linkedin.com/in/bruce-mcintosh-67b69018 Dean Hyde www.linkedin.com/in/dean-hydeza

Dean Hyde

Thinking Bigger in the Payments Space

Businesses are diversifying their service models, exploring omnichannel approaches and finding new ways to meet the challenges of digitisation head on.

By RAHUL JAIN , co-founder and CEO of Peach Payments

In a business environment shaped by geopolitical instability, increasing global competition and a fragmented economy, South African merchants are reimagining their growth strategies and thinking bigger.

BEYOND TRADITIONAL MARKETS

South African merchants are thinking bigger and expanding beyond urban centres to reach new customer bases in underserved areas. The World Wide Worx 2024 Online Retail Report highlights a major shift –53.2 per cent of companies now deliver to townships, increasing accessibility to goods and services.

But expansion isn’t just about geography; it’s about adapting to shifting consumer demands. Businesses are evolving their models to offer greater convenience, speed and personalisation. Checkers Sixty60, for instance, saw a 63.1 per cent surge in app-based sales in 2023, underscoring the growing appetite for fast, digital- rst shopping. The Sixty60 team leveraged personalisation at scale, delivering 454 million tailored offers and ensuring 60-minute delivery, showing how businesses can stay ahead through innovation.

At the same time, consumer habits remain diverse. While mobile drives online shopping, a signi cant portion of customers still prefer the in-store experience. This presents a clear opportunity for omnichannel retail, where businesses seamlessly blend digital convenience with physical engagement.

Beyond domestic expansion, South African businesses are increasingly looking outside

THE FUTURE OF GROWTH IS OMNICHANNEL

As financial ecosystems evolve, solutions that enable speed, automation and reliability will play an increasingly important role in business operations, ensuring seamless cash flow management and enhanced user experiences. South African businesses that embrace omnichannel strategies, leverage alternative payment methods and adopt real-time financial solutions will be well-positioned to lead in an ever-changing digital economy.

By thinking bigger and prioritising adaptability, merchants can not only navigate today’s challenges, but also drive sustainable growth and innovation across the continent.

our borders. Davos 2025 placed a strong emphasis on cross-African collaboration and the Intra-Africa Trade Agreement, creating new pathways for regional growth and trade.

CONSUMER CHOICE AND ALTERNATIVE PAYMENTS DRIVING GROWTH

Payments are at the heart of evolving business strategies and the growing demand for personalisation. As consumer preferences shift, alternative payment methods are becoming mainstream, reshaping how businesses transact and engage with their customers.

AS CONSUMER PREFERENCES SHIFT, ALTERNATIVE PAYMENT METHODS ARE BECOMING MAINSTREAM,

RESHAPING HOW BUSINESSES TRANSACT AND ENGAGE WITH THEIR CUSTOMERS.

A

SOLUTION THAT BRIDGES IN-STORE AND DIGITAL TRANSACTIONS ALLOWS BUSINESSES TO SELL ANYWHERE, RECONCILE EASILY AND MANAGE OPERATIONS EFFICIENTLY.

For enterprises, vouchers (61 per cent), Buy Now, Pay Later (47 per cent), and Payment Links (44 per cent) are the most widely used alternative payment solutions. Digital wallets are also gaining traction, with 37 per cent of merchants now accepting Apple Pay and Google Wallet, according to the report.

These innovations are expanding access to digital commerce, particularly for cash-dependent customers. Vouchers, for example, enable consumers to purchase credit at local spaza shops and redeem them online – bridging the gap between cash and digital payments. Credit solutions like RCS cards and Buy Now Pay Later offerings, such as PayFlex, ZeroPay, Float and Happy Pay, boost nancial inclusion, allowing consumers to afford higher-ticket items through exible, interest-free instalment payments.

Rahul Jain

Our research shows that when consumers have access to more exible payment options, their spending increases, particularly on big-ticket purchases. This shift isn’t just about convenience; it’s helping businesses capture more sales and reach a wider audience in an increasingly digital economy.

Digital wallets, such as Apple Pay, Google Pay and Samsung Pay, are also gaining popularity because they offer biometric security coupled with the convenience of not needing a bank card. Peach Payments’ data across our merchant base also shows that offering Apple Pay translates into 20 per cent higher conversion rates for merchants compared with other payment methods.

“Starting with Apple Pay was just the beginning for us. It made perfect sense to move everything over to Peach Payments. Now, we have almost all payment methods with them and we’re continuing to add more. What we love most is how everything sits with one source – settlements are seamless and all handled through Peach Payments. The onboarding experience with sales was exceptional; everything ran smoothly, making the transition effortless. We couldn’t ask for a better payments partner,” says Allan Harper, nancial director at Digicape.

THE ROLE OF PAYMENTS IN OMNICHANNEL GROWTH

As online retail edges towards 10 per cent of total sales, merchants must create a uni ed approach for their customers. The future isn’t just online or of ine – it’s a fully integrated, connected experience across all touchpoints. Customers expect seamless interactions whether they’re browsing in-store, shopping online or switching between both.

This is where a uni ed payments ecosystem becomes essential. A solution that bridges in-store and digital transactions allows businesses to sell anywhere, reconcile easily

REAL-TIME CLEARANCE PAYOUTS PROVIDE BUSINESSES WITH A WAY TO EFFICIENTLY DISTRIBUTE FUNDS. DIGITAL WALLETS,

MAKING ONLINE COMMERCE AND DIGITAL PAYMENT EASIER

Peach Payments is a fast-growing African payment solution provider that makes online commerce and digital payment acceptance easier and more accessible across Kenya, Mauritius and South Africa. It works with small and large sellers to provide a complete toolkit to accept, manage and disburse payments through web, mobile and in-store.

and manage operations ef ciently – critical for industries with mobile sales teams, ticketing and event-driven businesses.

A SMARTER POINT OF SALE FOR BUSINESSES ON THE MOVE

Peach Payments recently launched enterprise-grade point-of-sale devices, designed to unify online and of ine transactions in one place. What sets these apart is their ability to integrate industry-speci c apps – whether for inventory management, ticketing or voucher-based sales – offering businesses full control over their operations, no matter where they are. For event-based businesses, such as iTickets SA, this has been a game-changer. “With Peach Payments’ point-of-sale devices, iTickets can now offer customers a seamless way to pay with cards or digital wallets at the door. Integrating the Posterita app on the device has made managing ticket inventory effortless, allowing us to handle seating with ease. Plus, the omnichannel capabilities let us track both online and in-person ticket sales in real-time – all from our Peach Payments dashboard,” says Nowel Chitorido, senior manager in operations at iTickets SA.

For South African businesses, growth isn’t just about scale; it’s about adaptability. Those that embrace omnichannel strategies will lead the next phase of commerce across the continent.

TAILORED PAYMENT SOLUTIONS FOR EVOLVING INDUSTRY NEEDS

As businesses scale, their payment requirements become more complex. Multicurrency support, daily settlements, enterprise-grade security and specialised solutions, such as embedded checkout and real-time clearance payouts, are becoming essential to meet industry-speci c demands. These capabilities align with broader trends in nancial operations where speed, automation and adaptability are increasingly prioritised.

REAL-TIME CLEARANCE PAYOUTS

The need for instant, automated fund disbursement is growing across various sectors. Real-time clearance payouts provide businesses with a way to ef ciently distribute funds to suppliers, merchants, and customers through a single application programming interface integration. In industries, such as betting and gaming, quick access to winnings enhances customer retention. The gig economy depends on immediate salary payments to support exible work arrangements. Insurance providers are under pressure to accelerate claim settlements, improving customer experience. Similarly, businesses managing large-scale payrolls bene t from automated salary disbursements, bonuses and reimbursements, reducing administrative friction.

THE FUTURE OF PAYMENTS

THE PAYMENT GATEWAY VERSUS PAYMENT PROCESSOR

How innovation is shaping seamless, secure transactions

As digital commerce expands, payment gateways are evolving to offer enhanced security, seamless cross-border transactions and application programming interface-driven efficiency. BUSANI MOYO finds out how innovation is transforming the payments landscape

With rising numbers of individuals and businesses turning to e-commerce to ful l their needs, seamless and secure transactions have become indispensable. Central to this process is the payment gateway, which connects merchants and customers. The payment gateway encrypts sensitive data and authorises payments, ensuring every transaction is completed smoothly. As digital payments evolve, they must be accompanied by innovations in the technologies driving them. From enhanced security measures and improved ef ciency to integrations driven by application programming interfaces (APIs), sophisticated fraud detection and expanded support for multiple currencies and payment methods, we explore the latest advancements in payment gateways.

INNOVATING TO MEET EVOLVING CONSUMER EXPECTATIONS

Many consumers and businesses are apprehensive about using digital payment platforms because of security concerns, identity theft and data breaches. Sometimes, platform interfaces are not user-friendly. Within this context, the payments industry must

continuously innovate to enhance security, ef ciency and user experience.

When payment methods are lacking, businesses lose sales. This is a reality acknowledged by Rahul Jain, the CEO and co-founder of Peach Payments, a Cape Town-based payment gateway. He says: “We know from the 2024 World Wide Worx Online Retail Report, sponsored by Peach Payments, Mastercard and AskAfrica, that 11.9 per cent of customers abandon their cart when there aren’t enough payment methods available.”

Jain adds: “Successful payment gateways increasingly bring together everything businesses need to accept payments,

Although people sometimes use the terms payment gateway and payment processor interchangeably, they are two different concepts. As the name suggests, a payment gateway is a gatekeeper that secures the transaction by ensuring the customer’s payment information is securely transmitted to the payment processor. The processor uses the collected data to verify the payment details and then moves the funds from the customer’s bank to the merchant’s account.

bill recurrently, make payouts and everything in between. This includes traditional back-of ce functions, such as payment reconciliations, and more outward-looking functionality like different payment methods.”

Lincoln Mali is the president of the Association of South African Payment Providers (ASAPP). His association views real-time payment services like PayShap as “a signi cant milestone in South Africa’s payment landscape since its launch in March 2023”. PayShap is a low-cost, real-time, instant payment system developed by the South African Reserve Bank (SARB) and the Payments Association of South Africa (PASA) to facilitate seamless digital transactions.

Even though PayShap is a welcome innovation, Mali posits that its reach and impact is limited as “it is only available to those with an account with participating banks, and

“SUCCESSFUL PAYMENT GATEWAYS INCREASINGLY BRING TOGETHER EVERYTHING BUSINESSES NEED TO ACCEPT

Lincoln Mali

Rahul Jain

nonbank nancial services providers, such as the members of ASAPP, are excluded from participating directly in PayShap unless routing PayShap transactions through the participating banks.” However, Mali says: “ASAPP members are encouraged by the SARB’s public acknowledgement of the vital role nonbank entities play in driving innovative transactional payment services. We rmly believe nonbank providers should fully integrate into the nancial system.”

FACING CYBER THREATS HEAD-ON

While e-commerce allows businesses and consumers to interact in novel ways outside the traditional business context, criminals also see opportunities to exploit weaknesses. In this regard, Jain notes: “Reputable payment platforms meet the highest standards of payment security, which reduces the scope of compliance efforts for businesses.” He refers to “Peach Payments’ own PCI compliance, with solutions, such as embedded checkout, which simpli es PCI DSS 4.0.1 adherence for merchants, enabling them to focus on their core business while we secure their payments”.

Mali says: “Encryption and tokenisation are key to being able to offer secure transactions and are already prevalent in South Africa.”

He adds: “Tokenisation adds another layer of security by replacing sensitive payment data with unique, meaningless ‘tokens’. This minimises the risk of data breaches as, even if a database is compromised, cybercriminals only gain access to useless tokens.” On the other hand, he says: “Encryption protects sensitive payment information during transmission by transforming data into secure code. Even if intercepted, the information remains unreadable to unauthorised parties. Payment gateways utilise strong encryption protocols, such as SSL and TLS, to safeguard data integrity and con dentiality.”

Mali notes that when payment gateways use sophisticated technologies, they do not have to compromise speed to provide security. He posits: “By leveraging arti cial intelligence for fraud detection and encryption and tokenisation for secure transaction processing, payment gateways can effectively ght fraud while providing the seamless and speedy transactions users expect in today’s digital world.”

TRANSFORMING PAYMENT GATEWAYS WITH APIS

In simple terms, Jain de nes APIs as “software intermediaries that allow two applications to talk to each other”. He adds: “In the payments world, this enables hyper-fast payment

orchestration, and is a huge advantage as they unlock faster, more secure transactions and signi cantly improve customer experiences. APIs also allow legacy systems to be accessed by more modern platforms, such as social media, to complete transactions.”

Mali highlights APIs’ central role, noting that they “are transforming payment gateways by providing the tools necessary for seamless third-party integration, faster transactions and effective solutions to implementation challenges, thereby enabling businesses to deliver secure and ef cient payment experiences”.

ENABLING SMOOTHER CROSS-BORDER TRANSACTIONS

As the world becomes a global village, proactive businesses tap into markets they could never have accessed before, but there are challenges. Mali acknowledges this reality: “Businesses that operate across multiple countries face unique challenges with cross-border transactions, including the intricacies of currency conversions, compliance with regulatory requirements, local payout partners, secure and international payment rails, higher transaction costs, longer processing times and potential security risks.”

Mali advises businesses: “By leveraging the expertise of ASAPP members, South African businesses can adeptly tackle the intricacies of international commerce, enabling secure, cost-effective and seamless global transactions. Payment gateways emerge as indispensable allies in driving businesses toward international growth.”

EMERGING TECHNOLOGIES SHAPING THE FUTURE

“The key metric for a successful payment gateway – once the non-negotiables, such as security and reliability, have been met –is how simply and comprehensively the systems perform, for both the merchant and the consumer,” argues Jain. “Emerging technologies like digital wallets play into that by simplifying the user experience once they are made available on the payment gateway. If the payment gateway can’t accommodate these

Did you know?

The global real-time payment space is dominated by India, with 129.3 billion payment transactions in 2023, with 84 per cent of the country’s payment transactions being real-time. A real-time payment is an immediate and irrevocable money transfer between two banks. Once made, it can’t be cancelled.

Source: ACI Worldwide 2024 Real-Time Payments Report

There are approximately 11.7 million e-commerce users in South Africa in 2025, and this number is expected to almost double to 21.52 million by 2029.

Source: Statista.com

new technologies in a way users experience as simple (even if the technology behind it is complicated), the payment gateway will fall into disuse. This is why good payment gateways undertake continued development daily.”

“PAYMENT GATEWAYS UTILISE STRONG ENCRYPTION PROTOCOLS, SUCH AS SSL AND TLS, TO SAFEGUARD DATA INTEGRITY AND CONFIDENTIALITY.” – LINCOLN MALI

BRINGING OUR IDENTITIES INTO THE DIGITAL AGE

South Africa is taking steps towards establishing a digital identity for all citizens, but there are a host of technological, regulatory and educational factors to address, writes ANTHONY SHARPE

We spend more of our lives than ever before online, interacting with a multitude of systems to conduct everything from shopping and business to entertainment and socialising. In this context, it’s unsurprising that the notion of digital identity has come to the fore.

Basically, digital identity is the collection of information about an individual or entity that is stored and used in digital environments to verify and authenticate their identity. Unlike traditional forms of identi cation, such as physical ID cards or passports, digital identity leverages technology to create a virtual representation of a person.

A BRIEF HISTORY OF DIGITAL IDENTITY

Digital identity started with basic usernames and passwords, which were adequate during the early days of relatively simple online activity. However, as the internet grew in popularity and utility, institutional databases managed by governments, banks and corporations emerged to store the rapidly growing quantities of personal information needed for identity veri cation and access control. Digital identity took on a new dimension with the explosion of social networks, which is around the time single sign-on solutions emerged to enable users to access a range of services using the same digital ID.

Of course, centralised systems represented prime targets for cybercrime, leading to the development of public key infrastructure and cryptographic methods for secure communication and veri cation. Decentralised technology, such as blockchain, also promises to improve security and user control through distributed ledgers, while self-sovereign identity (SSI) frameworks allow individuals to manage their data, reducing reliance on intermediaries. What does this all mean for South Africans?

Fast fact

Countries that implement digital identity could reap economic value equivalent to three to seven per cent of gross domestic product. This would result from greater formalisation of economic flows, improved financial inclusion and incremental digitisation of interactions where trust is a key factor.

Source: United Nations Economic Commission for Africa

MAPPING THE ROAD AHEAD

Considering the rather antiquated systems employed by the Department of Home Affairs, it might be a little hard to imagine the concept taking off in South Africa any time soon, but plans are afoot to introduce digital identities for all South Africans, says Lerato Lamola , partner at Webber Wentzel.

Last year, the South African Reserve Bank (SARB) published the Digital Payments Roadmap, which contains 17 action items to modernise the South African payments system, one of which is digital identity.

“They say digital identity would ease access to payment services and thus increase nancial inclusion,” says Lamola. “It would make payments more secure, allow for remote onboarding, reduce manual errors and hopefully also reduce compliance costs for nancial institutions.”

Lamola adds that the roadmap is very ambitious, given that it sets a two-year timeline for developing and delivering nancial identity

IN

2024, HOME

AFFAIRS

“IN SOUTH AFRICA, WHEN WE TALK ABOUT DIGITAL PAYMENTS, FINANCIAL LITERACY IS ESSENTIAL, BUT SO IS DIGITAL LITERACY.” – LERATO LAMOLA

solutions in South Africa. “On the plus side, it recognises that many action items require input from multiple stakeholders. These will include industry players, National Treasury and then other government departments, and the digital identity one needs collaboration or input from Home Affairs.”

DIGITAL LITERACY

In 2024, Home Affairs Minister Leon Schreiber announced a ve-year plan to transform the department into a digital- rst one. While this is laudable, Lamola says it drew concern that this might exclude the large portion of the population who are digitally illiterate.

“This illustrates how in South Africa, when we talk about digital payments, nancial literacy is essential, but so is digital literacy. That’s more than just education – it’s also access to data and a device that allows for digital payments. So, any digital service offering, nancial or otherwise, will need to overcome this digital literacy challenge.”

KNOW YOUR CUSTOMER

Digital identity can potentially make nancial service providers in South Africa more agile, says Lamola, but these organisations need to update their legacy systems to work with this new technology.

MINISTER LEON SCHREIBER ANNOUNCED A FIVE-YEAR PLAN TO TRANSFORM THE DEPARTMENT INTO A DIGITAL-FIRST ONE

Lerato Lamola

One key area where it can help is in customer veri cation. The Financial Intelligence Centre Act requires nancial institutions to conduct know-your-customer (KYC) processes to verify customer identity. “The idea is that a digital identity makes this process smoother,” explains Lamola. “However, one of the questions this raises is who holds this data. Would it be a central repository with all of our identities, or would we have of ine keys that we give nancial institutions one-time access to? The roadmap doesn’t address this detail, but if the intention is create a central hub, we need to examine issues of data ownership, cybersecurity and consumer consent.”

Lamola says now nancial institutions, particularly ntechs, are using third-party digital identity service providers to meet KYC requirements, many of their customers are signing up remotely for their services. “This isn’t currently regulated by any single piece of regulation, but one hopes that the regulators will conduct a survey of the industry to understand who is using these products, the security elements involved and the consent requirements around them before imposing regulations.”

SECURING IDENTITY

One such service provider is Secure Citizen, which creates veri able digital identities that can be reused across multiple applications. “The idea is that you make a payment based on who you are, not what you carry,” says Martin Grunewald, chief executive for global growth at Secure Citizen.

In terms of data storage and security, Grunewald gives the example of the European Union, where countries have passed laws around digital identity and are building an ecosystem based on SSI. “This means

Fast fact

There is much work to be done worldwide to improve the documentation of citizens. As many as 3.3 billion people lack access to a government-recognised digital identity that would enable them to transact online securely, while 850 million people globally have no official identity at all.

Source: The World Bank

placing identity in the individual’s hands. You control the core identity and share it with whomever you wish. It’s not a centralised honeypot of data; rather, the information sits in a decentralised blockchain environment.

“Someone could be coerced during this process, but other technologies are being developed to detect stress based on facial expressions and the lack when checking your photo against what is stored at Home Affairs.

“Following that, we believe fraud will be reduced to a minimum because the register is decentralised and not hackable. Whether at rest or in transit, the information is cryptographically secured.”

To further understanding and collaboration, the Intergovernmental Fintech Working Group – which comprises several regulatory bodies, including National Treasury, the Financial Intelligence Centre, the Financial Sector Conduct Authority, the National Credit Regulator, SARB, the South African Revenue Service and the Competition Commission – has created a regulatory sandbox that ntechs and technology providers can use to test their services, Lamola says. “This is a learning exercise for both the public and private sectors.”

BUILDING THE ECOSYSTEM

Initiatives like this are helping to esh out what is needed to create an ecosystem where digital identities are understood, secure, easily usable and properly regulated. Lamola says, however, that it is still in the

“WE BELIEVE FRAUD WILL BE REDUCED TO A MINIMUM BECAUSE THE REGISTER IS DECENTRALISED AND NOT HACKABLE. WHETHER AT REST OR IN TRANSIT, THE INFORMATION IS CRYPTOGRAPHICALLY SECURED.” – MARTIN GRUNEWALD

Follow: Lerato Lamola www.linkedin.com/in/lerato-lamola-esq-08462514

Martin Grunewald www.linkedin.com/in/martin-grunewald-523b843a

early stages. “One of the crucial things is understanding what work has been done in Home Affairs. We need to know where it is in its digital transformation journey. We need to understand what government will need to accept digital identity as valid, legal proof of an individual’s identity. Once these requirements have been addressed, we need to establish what sort of legislation needs to be drafted and implemented so this can be used by everyone.”

Lamola emphasises that government also needs to focus on building trust. “One of the reasons South Africa is lagging in digitalisation is trust. The roadmap includes a survey: one-third of those surveyed use digital nancial services, one-third are nancially or digitally excluded and one-third are digital rejectors. Trust is a huge part of this process.”

TWITCHY RIDER

One space where digital identity is taking off is ride-hailing. Martin Grunewald of Secure Citizen says the company is providing verifiable credential technology to local start-up Twytch, which enables drivers to confirm passenger credentials, such as identity, safety record and driving history, while ensuring drivers are properly vetted for passengers.

“We do a cornerstone credential with a biometric facial recognition check against Home Affairs records to establish your digital identity, including a liveness check that establishes you are a living person. Provided that foundational element is accurate, you then have the cornerstone of digital identity.”

Martin Grunewald

DIGITAL PAYMENTS FOR AFRICA

The importance of digital payments to Africa’s future cannot be underestimated as these can increase financial inclusion, allow for unique business models and, most crucially, help create jobs, writes RODNEY WEIDEMANN

While cash remains prevalent across Africa, digital payments on the continent continue to gain momentum and are expected to grow by 20 per cent annually, according to a recent McKinsey report Already, there are massive investments in this space as the growth of arti cial intelligence (AI) and the push for true digital inclusion drive the market forward, informs Yaron Assabi, founder and CEO of Digital Solutions Group. Another driver is blended nancial systems – a combination of traditional nance and cryptocurrency – which is a reaction to the volatile currency trading in Africa, he says.

“Moreover, there is economic ef ciency in going cashless, not least because it helps to reduce crime,” adds Assabi. “Remember,

cash is not traceable the way digital transactions are, and the latter also makes it easier for businesses to innovate and focus on designing unique customer value propositions.

“Digital can transform Africa, not only by increasing nancial inclusion, but also by allowing for unique business models, such as the fractional ownership of shares or that of embedded nance – something I think we will see a lot more of as we move forward.”

TRANSFORMING THE LANDSCAPE

Steven Cohen, a founder of Legend Tags, notes that the rise of digital payments is a genuine game-changer. “It’s not just transforming the way businesses operate, but also revolutionising the entire nancial landscape in ways that empower workers who have traditionally been overlooked.

Yaron Assabi

“THERE IS ECONOMIC EFFICIENCY IN GOING CASHLESS, NOT LEAST BECAUSE IT HELPS TO REDUCE CRIME.”

– YARON ASSABI

Fast fact

Digital Solutions Group was involved in one of the first digital transactions in the country, via Vodacom, in 2000, through its Digital Mall subsidiary. Today, Digital Mall – with a legacy spanning 25 years – offers everything from grocery store goods and retail products to health and wellness solutions, and it has extended its e-tailing experience beyond the sale of traditional e-commerce goods, by enabling service providers that focus on customer experience and digital services.

Source: Digital Solutions Group

“For example, car guards who rely on tips often face the challenge of not receiving any payment, simply because many people no longer carry cash. With Legend Tags, customers can simply scan a unique barcode using their smartphones and instantly make a payment. This seamless process is not just convenient, but also helps car guards and other service workers earn a steady income in a fast, secure, and modern way.”

Thea Sokolowski, head of marketing and communications at payments infrastructure provider Stitch, explains that Stitch is integrated with banks and cellular networks to enable money movement between businesses or customers and businesses.

“The payments ecosystem is complex and changes frequently. We have a signi cant engineering team focused 24/7 on innovating, securing, protecting and generally making digital payments work as ef ciently as possible so businesses can focus on building great products rather than trying to build these payment systems themselves.

“Solutions such as M-PESA in Kenya are great examples of the impact digital payments can have.

M-PESA has penetration rates as high as 90 per cent in the market, and it allows people without access to a bank account to still access the digital economy. This helps reduce crime and fraud while enabling solutions to be built on top of the payments layer, such as savings, insurance and investments.”

Fast fact

Developed by South African entrepreneurs, PayPal has led the charge for online payment gateways. What PayPal did differently was to create a secure platform that made online transactions feel as safe and straightforward as exchanging cash at a local store. Once trust was established, businesses and consumers became more eager to embrace online commerce.

Source: Yuno

Sokolowski adds that digital payments solutions generally also enable access to subscription services or automated payments for services such as insurance.

AFRICA’S DIGITAL CHALLENGES

Sokolowski says Africa’s challenges, which include a lack of trust in banks and cards, remain considerable, however. “While there is still a long way to go to establish such trust properly, it is vital that players make efforts to educate people on the bene ts of digital and how it can reduce the cost to the consumer.”

Chipo Mushwana, executive for emerging innovation and payments at Nedbank, identi es the core challenges in Africa. “Firstly, many regions in Africa lack the necessary infrastructure for

digital payments, including reliable internet access and electricity. Overcoming these infrastructure limitations is imperative. Additionally, unreliable mobile network connections can disrupt digital transactions, leading to failed payments or delays.

“Security concerns around fraud and cyberattacks are also prevalent, and a lack of digital literacy among the population further impedes the adoption of digital payments.”

Mushwana also highlights the complexity and inconsistency of African regulatory environments. Navigating these regulations can be challenging for businesses aiming to innovate and expand digital payment services,

“OMNICHANNEL ALLOWS BRANDS TO ADD PERSONALISATION TO THE JOURNEY, SUCH AS REMEMBERING INDIVIDUAL CUSTOMERS’ PREFERENCES OR PAYMENT DETAILS, WHICH ENSURES MORE CONSISTENCY NO MATTER WHERE THEY SHOP.” – THEA SOKOLOWSKI

Chipo Mushwana

Thea Sokolowsi

including cross-border business-to-business payments. “Lastly, the cost of digital payment services can be prohibitive for many users, particularly in low-income areas. Reducing transaction fees and making services more affordable is essential for wider adoption.”

Despite these challenges, Mushwana suggests there are signi cant opportunities for growth in the digital payments market in Africa.

INNOVATION AND COMPETITION

Nedbank feels that the local market is balanced in terms of competition, with each organisation playing to their strengths and leveraging partnerships to drive organic growth.

“Adopting an optimistic stance, one could argue that banks are uniquely positioned to harness the bene ts of digital transformation. Their established brands, substantial nancial resources and expertise in legal, risk management and compliance are invaluable assets. These capabilities have become increasingly crucial as the importance of cybersecurity has surged alongside the growth of digital payments and advanced technologies,” Mushwana says.

Sokolowski points to other new entrants innovating in spaces like retail, such as The Foschini Group’s Bash – one of the rst real omnichannel brands in South Africa.

“Bash has developed a unique omnichannel offering, which requires the full customer journey – including the payments experience – to feel the same, whether a customer is shopping in-store or online. Omnichannel allows brands to add personalisation to the journey, such as remembering individual customers’ preferences or payment details, which ensures more consistency no matter where they shop.”

Legend Tags co-founder Darryl Froom notes that the use of QR codes has also had a tangible impact, making digital payments simple and accessible for everyone. “QR codes make it easy for even the smallest businesses or service providers to accept digital payments. No need for expensive terminals or complicated setups – just scan and pay.

“Additionally, mobile wallets and contactless payment systems are making paying easier and faster than ever. We’re also seeing incredible growth in sectors, such as hospitality and retail, where businesses are quickly adopting cashless solutions to streamline their operations and provide customers with the convenience they demand.”

TANGIBLE BENEFITS OF GOING DIGITAL

According to Nedbank, the continent stands to gain significantly from the adoption of digital payments, with several key benefits: Enhanced convenience and accessibility: digital payments facilitate quick and easy transactions at any time, from anywhere, setting a new standard for user experience. Increased financial inclusion: Nedbank’s initiatives aim to bring financial services to under-served populations, including those in remote areas, bridging the gap in financial accessibility.

Reduced transaction costs: digital payments generally incur lower transaction fees when compared with traditional methods, such as cash or cheques, making financial transactions more affordable. Improved security: leveraging advanced technologies, such as encryption and multifactor authentication, organisations can enhance the security of digital transactions, significantly reducing the risk of fraud and theft.

Real-time transactions: digital payment solutions enable instant fund transfers, improving cash flow for businesses and providing immediate access to money for consumers. Economic growth: by making transactions more efficient and inclusive, digital payment solutions contribute to overall economic growth, fostering a more robust financial ecosystem.

Assabi agrees that digital payments have to be easy, noting that there is a lot of innovation in the blockchain arena, with nancial entities looking at how to improve on lending, borrowing, directing

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The future of payments in Africa

investment without intermediaries, managing issues around in ation and dealing with currency uctuations.

AFRICAN ADVANTAGE

“Africa has a young, tech-savvy population, high mobile penetration, a strong entrepreneurial system and less-developed banking systems – so there are unique models to be developed on the continent. This should lead to more innovation and improved economic growth, as local start-ups become global players and bring jobs back home.

“Blended nancial services is a key area here, as there’s plenty of opportunity to innovate around tokenisation, as well as simplifying cross-border payments to enable easier trade. Africa – without any real legacy technologies to worry about – is potentially the biggest growth economy in the world.”

Froom believes digital payments will continue to grow exponentially as people are increasingly looking for simple, secure and quick payment options. “In the near future, we expect to see more businesses in sectors, such as hospitality, retail and even informal sectors like parking and street vending, adopting cashless solutions.”

Sokolowski adds that with increasing access to connectivity and more accessible smartphones, Africa’s population continues to become more digitally literate. “As this occurs, growth will happen and we will likely see more solutions tailored to speci c market segments. It is an exciting time in the digital payments space, with huge levels of growth, rising e-commerce spend, and – as populations across African markets become more comfortable with interacting and paying online – I have no doubt we will see even more developments in this arena,” she concludes.

“THE USE OF QR CODES HAS ALSO HAD A TANGIBLE IMPACT, MAKING DIGITAL PAYMENTS SIMPLE AND ACCESSIBLE FOR EVERYONE.” – DARRYL FROOM

Follow: Yaron Assabi www.linkedin.com/in/yaronassabi

Thea Sokolowsi www.linkedin.com/in/thea-sokolowski

Chipo Mushwana www.linkedin.com/in/chipomushwana

CASH VERSUS DIGITAL: WHY THE FUTURE OF PAYMENTS IN AFRICA ISN’T EITHER/OR

Mobile wallets represent an opportunity to boost financial inclusion across the continent, writes RAYMOND CHIIMBA , founder and CEO of Africawide

The rise of mobile wallets has rewritten the rules of nancial inclusion. Across the continent, digital wallets are bridging gaps, enabling payments and empowering millions who were once locked out of the formal economy. But despite this massive shift, challenges remain.

Is Africa ready for a fully mobile nancial future? Are businesses, traditional banks and regulators thinking beyond just digital transactions to build a truly inclusive ecosystem?

Cash is still king, but it shouldn’t be the only option

While mobile payments are growing rapidly, cash remains dominant in many parts of the economy. Why? Because cash is simple. Cash is trusted. Cash doesn’t require data, a smartphone or a bank account.

However, cash also comes with risks – security concerns, inef ciencies and exclusion from the digital economy. The goal of nancial inclusion should not be to eliminate cash, but to bridge the gap between cash and digital payments, creating an ecosystem where people can move seamlessly between both worlds.

That’s where cash-in, cash-out networks, agent banking and self-service kiosks come in. These are not just conveniences; they are essential on-ramps to the digital economy.

MORE THAN JUST PAYMENTS

A mobile wallet is more than just a payment tool. It’s a gateway to nancial empowerment. Here’s why:

• Savings and credit access: digital wallets enable micro-loans, salary advances and small savings accounts, helping users build nancial resilience.

• Payments and remittances: paying bills, sending money across borders or making everyday purchases becomes instant and seamless.

• Financial identity: many Africans lack formal credit histories, but mobile transactions can serve as alternative credit scoring data, allowing users to access loans and nancial services. For mobile wallets to reach their full potential, they must do more than just store money –they must integrate into everyday nancial behaviour and provide real-world utility.

THE INCLUSION GAP

Solving these challenges requires more than just technology; it demands deep collaboration between ntechs, banks, regulators and businesses to make digital nancial services intuitive, affordable and widely accepted.

In some African markets, interoperability between mobile wallets and bank accounts remains limited, meaning users are still forced to rely on physical cash for certain transactions. This breaks the seamless digital nancial experience that true inclusion requires.

TIME TO RETHINK FINANCIAL INCLUSION

Africa stands at the edge of a nancial revolution, but simply introducing mobile wallets won’t be enough.

• Regulators must push for interoperability between mobile money, banks and ntech platforms.

If mobile wallets are so powerful, why isn’t everyone using them? The reality is that nancial inclusion is not just about access; it’s about trust, usability and education.

• Many people still don’t understand how mobile wallets work or they fear losing their money in a digital system they don’t fully trust.

• It’s one thing to have a mobile wallet, but if merchants, transport services and businesses don’t widely accept digital payments, cash remains the default.

• Many mobile wallets charge high transaction fees for funding wallets with cash or converting wallet balances back to cash.

• Businesses must integrate digital payment options that are intuitive and widely accepted.

• Fintech innovators must prioritise usability and trust-building, ensuring mobile wallets are more than just storage accounts. Financial inclusion isn’t just about access; it’s about empowerment. Mobile wallets are a once-in-a-generation opportunity to bring millions into the digital economy. However, for this revolution to truly succeed, we must think beyond payments and build real nancial ecosystems.

The future is digital, but only if we build it right.

INTO EVERYDAY FINANCIAL BEHAVIOUR AND PROVIDE REAL-WORLD UTILITY.

Follow: Raymond Chiimba https://www.linkedin.com/in/raymond-chiimba/?originalSubdomain=za

Raymond Chiimba

DIGITAL MONEY MOVES

Fintech

innovations are revolutionising cross-border payments, making transactions faster, cheaper and more transparent. Mobile wallets, blockchain and artificial intelligence are reshaping global remittances.

By BIÉNNE HUISMAN

Cross-border payment systems have historically been slow and costly, with traditional remittance models characterised by high fees, unnecessarily frustrating processes and a lack of transparency. However, in tandem with globalisation, ntech advancements are rapidly streamlining cash exchange between countries.

“This is especially true in South Africa, where traditional banks impose hefty hidden fees, rely on outdated processes and provide little to no guidance on complex compliance requirements,” says Harry Scherzer, CEO of Future Forex. “However, ntech innovators are transforming the space by leveraging technology and automation to streamline the entire international payment process, saving clients time and money.”

What’s more, Scherzer predicts that in the future “sending money internationally will be as simple as sending a text message”.

Experts agree that within this realm, digital-led solutions promise a far more ef cient and seamless experience, increasing cost-effectiveness and transparency.

Dr Thanusha Govender, CEO of payment orchestrator XLink Communications, points out that in sub-Saharan Africa, over 45 per cent of adults remain unbanked, which limits access to essential nancial services.

“High fees, remittances to bank accounts and slow processes limit access to these services,

continuing to force people working in South Africa and sending money home to rely on informal channels.”

Dr Govender cites her company’s digital interface, XLink Send, as a solution. “The platform simpli es cross-border payments by enabling settlements into bank accounts, mobile wallets and cash pickup points, meeting users where they are, which is vital to that seamless user journey consumers are seeking. The transactions are lower in cost than many others and the platform also enables payments via more accessible channels such as WhatsApp.”

Within this expanding remittance space, mobile and digital platforms replacing traditional banking methods are a central trend. This allows individuals and businesses to book international transactions directly from their smartphones or computers.

UPDATING LEGACY BANKING

Traditional banking is fast evolving, too. Vanesha Palani, executive for nancial management at Nedbank, says mobile technology is a game-changer in its ability to turn smartphones into powerful nancial tools. “The widespread prevalence of mobile devices even in developing regions, like many countries in Africa, creates massive opportunities for nancial inclusion. Mobile wallets and peer-to-peer transfer apps are not just convenient ways to manage money; they’re also gateways to the global economy for millions of people previously excluded from formal nancial systems.”

“FINTECH INNOVATORS ARE TRANSFORMING THE SPACE

BY

“MOBILE

WALLETS AND PEER-TO-PEER TRANSFER APPS

ARE NOT JUST CONVENIENT WAYS TO MANAGE MONEY; THEY’RE ALSO GATEWAYS TO THE GLOBAL ECONOMY FOR MILLIONS OF PEOPLE PREVIOUSLY EXCLUDED FROM FORMAL FINANCIAL SYSTEMS.”

– VANESHA PALANI

Palani highlights strategic partnerships such as Nedbank’s collaboration with money transfer service, Western Union. “Collaboration with partners like Western Union represents another way in which Nedbank is harnessing the power of digital to add meaningful value in the lives of its clients and their families.

“The offering leverages Western Union’s global network and combines it with Nedbank’s trusted banking services and digital leadership. The result is the ability to send money to loved ones in more than 200 countries and territories swiftly, with multiple payout options, including cash at agent locations and transfers directly into bank accounts or mobile wallets.”

THE IMPACT OF BLOCKCHAIN

LEVERAGING

TECHNOLOGY AND AUTOMATION TO STREAMLINE THE ENTIRE INTERNATIONAL PAYMENT PROCESS, SAVING CLIENTS TIME AND MONEY.” –

Innovations in blockchain technology and cryptocurrencies are also key drivers of change, offering the potential for secure, low-cost and near-instant payments. While still evolving –particularly in South Africa – the integration of cryptocurrencies and blockchain infrastructure is becoming more normalised, offering new avenues for cross-border payments.

Dr Govender says blockchain in crossborder payments is still purely theoretical in South Africa, adding that XLink does not use it at present, but the potential is there.

HARRY SCHERZER

Dr Thanusha Govender

Vanesha Palani

Harry Scherzer

FINTECH TO THE FORE

Ilze Wagener, head of product and segment at Investec Private Bank, says fintech is helping improve efficiency in cross-border payments.

“For financial institutions, such as Investec, it is crucial to innovate our financial service offerings consistently to reflect the increasingly international lives and needs of our clients.

“Our advancements in cross-border payments result in a less complicated and more convenient process for our clients. They can initiate instructions for these payments through multiple channels, including Investec Online and the application, as well as our international client support centre or their private banker.”

“The integration of crypto should only increase in the future,” says Scherzer. “Offering more opportunities to make international payments cheaper and more ef cient.” Palani says: “These decentralised systems have the potential to not only simplify remittances, but also democratise access to nancial services in general, particularly in regions with limited banking infrastructure.”

Arti cial intelligence (AI) and machine learning will likely spark further transformation. “These technologies can detect fraudulent activities, optimise exchange rates and personalise experiences, making cross-border transfers safer and more user-friendly,” says Palani.

IMPROVING TRANSPARENCY

Firstly, Scherzer notes clear fee structures. “Digital platforms often provide detailed breakdowns of fees before a transaction is con rmed. This transparency ensures clients understand exactly how much they are paying

Fast fact

Last year, Public Service and Administration Minister Mzamo Buthelezi announced that 6 220 foreign nationals are employed in South Africa’s public service sector across national and provincial departments.

Source: Department of Public Service and Administration

upfront, minimising hidden charges common in traditional banking systems. The major banks have been notorious for hiding fees in a wide ‘spread’, resulting in clients paying more than expected without their prior knowledge.”

Scherzer adds that it also enables real-time tracking. “Technology enables seamless, real-time tracking of payments, allowing clients to monitor the entire transaction process from start to nish. For instance, the Future Forex mobile app provides instant visibility on the status of transactions at every stage.”

On compliance, Dr Govender comments: “There will always be regulatory and compliance changes of which we need to be cognisant. These frameworks are evolving to better accommodate digital payments with enhanced security to protect consumers.”

THE FUTURE

Cross-border payments are shaping up to be simpler and more affordable than ever before, says Scherzer. “With ongoing advancements in AI and automation, payment processing times will continue to accelerate, compliance will be easier to navigate and costs will reduce signi cantly. An increasing number of individuals and businesses are already shifting from traditional banks to ntech providers that offer superior service, lower fees and an enhanced user experience.”

Dr Govender says: “Financial inclusion across Africa is a driving mission and we will continue to strive to provide the easiest and best ways to achieve that for everyone, from families and retailers to large companies.”

It’s clear that, while technology is a key driver of change in the world of remittances, it’s de nitely not the only one, says Palani.

“WITH ONGOING ADVANCEMENTS IN AI AND AUTOMATION, PAYMENT PROCESSING TIMES WILL CONTINUE TO ACCELERATE, COMPLIANCE WILL BE EASIER TO NAVIGATE AND COSTS WILL REDUCE SIGNIFICANTLY.” – HARRY SCHERZER

Follow: Harry Scherzer www.linkedin.com/in/harry-scherzer

Dr Thanusha Govender www.linkedin.com/in/dr-thanusha-govender-17b19a71

Vanesha Palani www.linkedin.com/in/vanesha-palani-a642b66

Ilze Wagener www.linkedin.com/in/ilze-wagener-6b7b3420

Did you know?

According to Statistics South Africa data, there are two million international migrants of working age (15–64) in South Africa. This represents 5.3 per cent of South Africa’s labour force.

“Remittance providers need to reimagine the concept of cross-border nancial connections and recognise the potential an effective remittance environment has to catalyse economic growth, accelerate nancial inclusion and even foster entrepreneurship, particularly in developing regions and countries.”

Scherzer predicts that one day, bringing home the bacon across countries will be as simple as pressing send. “Ultimately, cross-border payments are evolving towards a future where sending money internationally will be as simple as sending a text message.”

WHAT IS XLINK SEND?

In an industry known for hefty costs, XLink Communications is “committed to advancing financial inclusion – a critical driver for a prosperous African continent”.

Earlier this year, it launched its first cross-border payments solution, XLink Send. CEO Dr Thanusha Govender describes the solution: “A platform designed to offer affordable, efficient remittance services to corporate and retail customers, enabling users to send remittances across a variety of channels, including WhatsApp, mobile apps for retail users and a web portal for corporate clients.

“These channels integrate into a client environment and work along their existing technology estate.”

SIMPLIFYING PAYMENTS FOR SOUTH AFRICAN BUSINESSES

adumo transforms payment processing for businesses, delivering secure and scalable solutions that simplify cash flow management. Their expertise enhances operational efficiency, ensuring merchants thrive in today’s complex financial landscape.

Payments should be simple. Yet, for many merchants, they are anything but. Rising transaction costs, unreliable networks, slow settlements and complex integrations turn what should be a seamless process into a daily challenge. When payments don’t work ef ciently, businesses lose sales, customer trust and valuable time.

Established to solve this problem, adumo is one of South Africa’s largest independent payments companies that provides businesses with secure, ef cient and scalable payment solutions designed to eliminate complexity and improve cash ow.

With over R90-billion in annual transactions and more than 70 000 merchants using its services, adumo is a trusted partner across various sectors such as retail, hospitality and e-commerce.

At its core, adumo believes payments should be seamless, secure and scalable, working effortlessly in the background so businesses can focus on growth rather than administration.

The company has positioned itself as more than just a service provider. It is a partner that enables businesses to navigate the complexity of modern payments, ensuring they operate con dently and ef ciently.

A SHIFTING PAYMENTS LANDSCAPE

South Africa’s payments landscape has evolved signi cantly in recent years. While cash remains a familiar option, the rise of

Did you know?

adumo processes over R90-billion in annual transactions, serving more than 70 000 merchants across various sectors, including retail, hospitality, and e-commerce.

Source: adumo.com

digital wallets, QR payments and exible solutions, such as Buy Now, Pay Later, have reshaped consumer expectations. To stay competitive, ntech companies can no longer operate as monoline providers focused solely on cash solutions – they must embrace a diverse range of payment methods to meet the needs of today’s dynamic market.

For many businesses operating in retail environments, these changes bring opportunities and challenges. The ability to accept payments across multiple platforms, maintain uptime and ensure fast settlement speeds has never been greater. Yet, many businesses still rely on outdated systems that create inef ciencies and drive up costs.

The challenge lies in nding a partner that understands both the technical and operational realities of payments while offering a scalable and future-proofed solution.

The company complements the role of banks, bridging the gap by providing a comprehensive, future-ready payment

Fast fact

Through adumo Capital, businesses can access up to R5-million in opportunity capital within just 24 hours, with repayment terms linked to sales revenue rather than fixed installments.

Source: adumo.com

ecosystem that is as exible as it is reliable. Its approach is centred on the principle that businesses should not have to manage multiple vendors, fragmented systems or inconsistent support. Instead, they should have access to a single platform that enables them to accept and manage payments seamlessly across all sales channels without disruption.

MORE THAN JUST TRANSACTIONS

For many businesses, payments are more than just processing sales; they’re key to ensuring operational ef ciency, nancial clarity and customer experience. Payments play a critical role in how businesses manage cash ow, track revenue and engage with customers. A slow or unreliable payment system can frustrate customers, create unnecessary administrative burdens and lead to lost revenue opportunities.

For this reason, adumo’s solutions are designed to support businesses at every stage of growth, from start-ups needing their rst card machine to large enterprises requiring a fully integrated multichannel system.

The company’s platform empowers businesses to accept multiple payment types in-store, online or on the go, ensuring they never miss a sale – no matter where they are. Reliability is a key priority for merchants in fast-moving environments where a single payment failure can mean lost revenue. With multiple connectivity options, such as dual SIM, Wi-Fi and 4G, adumo ensures uptime remains consistently high, reducing the risk of network failures.

adumo IS A PARTNER THAT ENABLES BUSINESSES TO NAVIGATE THE COMPLEXITY OF MODERN PAYMENTS, ENSURING THEY OPERATE WITH CONFIDENCE AND EFFICIENCY.

Payment disruptions can be costly, particularly in industries, such as retail and hospitality, where downtime directly impacts sales and customer satisfaction. By ensuring reliable connectivity and real-time processing, adumo enables businesses to avoid these pitfalls.

Beyond payments, businesses need greater nancial oversight. Manual reconciliation, tracking sales and handling chargebacks can be time-consuming and costly, draining valuable resources. The challenge of managing nancial reporting across multiple payment types can create unnecessary complexity, particularly for businesses operating across brick-and-mortar and digital sales channels.

The company’s automated reconciliation service provides daily transaction tracking and

access funding quickly and on exible terms is crucial for businesses looking to capitalise on retail opportunities as and when they present, enabling merchants to do seasonal bulk buys at discounted rates, expand, add additional pro t centres or adapt to changing market trends.

Through adumo Capital, businesses can access up toR5-million in opportunity capital in just 24 hours, based on their sales volume, with repayments linked to revenue rather than xed monthly instalments. This allows businesses to scale, purchase stock or invest in new technology without the constraints of traditional nancing models. By offering funding solutions that align with actual business performance, adumo enables merchants to access capital without the burden of long-term debt obligations.

Similarly, customer engagement is a priority for merchants looking to drive repeat sales and build brand loyalty. In a competitive market, businesses offering value beyond the transaction are more likely to retain customers and encourage repeat business.

The company’s Gift & Loyalty solutions provide merchants with branded gift cards and rewards programmes, which help businesses foster long-term relationships with their customers. The ability to offer promotions, incentives and digital rewards creates new revenue opportunities while enhancing the overall customer experience.

exception management, giving merchants real-time visibility into their revenue and settlements. This level of oversight allows businesses to optimise cash ow, identify discrepancies early and streamline operations.

A BUSINESS PARTNER TO BOOST GROWTH

While adumo is best known for its payment solutions, its value extends beyond transaction processing. Fast access to short-term funding is a common challenge for growing businesses, with traditional bank loans often cumbersome with plenty of red tape. The ability to

TRUSTED BY BUSINESSES ACROSS SOUTH AFRICA

With a presence in 13 African countries, adumo has earned a reputation as a trusted, secure and scalable payment provider. Its partnerships with top nancial institutions, banks and leading ntech players ensure that businesses using adumo can access best-in-class payment solutions without the hassle of managing multiple vendors.

The company’s integration with over 70 point-of-sale providers further strengthens its value proposition, enabling businesses to adopt its solutions without major infrastructure changes. Security and compliance remain top priorities. adumo operates PCI DSS-certi ed platforms with advanced encryption, fraud

IN A COMPETITIVE MARKET, BUSINESSES OFFERING VALUE BEYOND THE TRANSACTION ARE MORE LIKELY TO RETAIN CUSTOMERS AND ENCOURAGE REPEAT BUSINESS.

detection and authentication measures, ensuring that every transaction is protected from potential threats.

In an era where cybersecurity risks are increasing, businesses need payment partners that prioritise data protection and regulatory compliance. With its robust security framework, adumo ensures merchants can process transactions with con dence, knowing that sensitive customer information is safeguarded.

Fast fact

adumo offers multiple connectivity options, including dual SIM, Wi-Fi, and 4G, ensuring high uptime and reliability, which is crucial for businesses in fast-paced environments.

Source: adumo.com

A SIMPLER FUTURE FOR PAYMENTS

For too long, payments have been seen as a necessary but complex part of doing business. adumo is changing that by providing an integrated, user-friendly system that simpli es transactions, enhances nancial oversight and supports business growth.

By consolidating payment acceptance, transaction management, funding solutions and customer engagement tools into a single ecosystem, adumo is setting a new standard for payment simplicity.

As digital commerce continues to evolve, businesses need a partner that understands their needs, adapts to industry shifts and offers solutions that go beyond transactions.

With its focus on scale, security and customer- rst innovation, adumo empowers businesses to transform how they accept and manage payments, making the future of commerce simpler, more accessible and designed for growth.

offers 24/7 expert assistance. The ability to

What sets adumo apart is its commitment to customer service. Unlike some providers that rely solely on automated support, adumo offers 24/7 expert assistance. The ability to speak to real payment professionals rather than chatbots or automated ticketing systems, ensures merchants receive timely support when most needed. Payments are mission-critical, and adumo recognises that merchants need reliable and responsive assistance to resolve issues quickly.

For more information: www.adumo.com

IN A COMPETITIVE MARKET, BUSINESSES OFFERING VALUE BEYOND THE TRANSACTION ARE MORE LIKELY TO RETAIN CUSTOMERS AND ENCOURAGE REPEAT BUSINESS.

ENABLING REAL-TIME PAYMENTS

The South African payments industry is abuzz with excitement following the launch of PayShap, writes DAYALAN GOVENDER , Nedbank’s managing executive for solution innovation

To support corporate and business clients, Nedbank has successfully implemented its real-time payments application programming interface (API) and is rolling out PayShap payments on the Nedbank Business Hub. This provides clients seamless access to PayShap, an industry-interoperable real-time payment solution. An API enables Nedbank and its clients to communicate through directly integrated programmes. PayShap enables consumers to make digital rather than cash payments.

In September 2024, Nedbank piloted phase one of its real-time payments API with selected corporate clients. These clients praised the speed and stability of the API channel, noting enhanced client experiences, immediate access to funds and the bene ts of modernised technology. This marks a signi cant milestone in Nedbank’s commitment to enhancing client payment solutions.

FASTER, CHEAPER, MORE SECURE

PayShap enables payments to be transferred from the payer to the bene ciary in 10 seconds or less (with an industry average of less than 3 seconds), offering a robust, secure and cost-effective method for quick money transfers. This solution aligns with international digital trends, emphasising the growing focus on faster and immediate payments.

Nedbank’s real-time payments API is designed to be quicker and simpler to

implement than traditional le-based solutions. It allows for real-time requests and responses, eliminating the need for clients to submit a le with a single payment instruction or the manual capture of a payment instruction on a front-end banking system. This integration reduces the risk of human error as the payment information comes directly from the business system.

Additionally, the API is linked to Nedbank’s transactional information solutions, ensuring that both the paying client and the bene ciary immediately receive con rmation of the payment status after submitting a payment instruction. This capability allows clients to manage their liquidity more effectively or integrate it into their business process, such as releasing goods or services. Clients can use PayShap as an alternative payment method, for example, paying wages or allowances and effecting refunds.

LOOKING FORWARD

In addition to the roll-out of account-to-account or account-to-proxy PayShap payments via the real-time payments API, Nedbank is excited to

unlock further opportunities for corporate and business clients with the upcoming launch of its Request to Pay solution via the real-time payments API. This capability is highly anticipated by corporate clients. Nedbank believes Request to Pay will be a game-changer, allowing corporate clients to receive correctly referenced deposits in real-time for immediate operational or investment use.

Nedbank’s real-time payments API and PayShap integration represent a signi cant advancement in payment solutions, offering corporate and business clients a faster, more secure and ef cient method for real-time payments. While the success of a payment is critical, payment con rmation and the ability to query the status of the payment are equally important in the real-time economy. Clients can integrate payment information for PayShap via Nedbank’s API.

As Nedbank continues to innovate and enhance its offerings, its clients can look forward to more capabilities that will drive their business operations and customer interactions forward.

Follow: Dayalan Govender www.linkedin.com/in/dayalan-govender-a4406222

WATCH Nedbank PayShap: How to pay to a ShapID on the Money app

Dayalan Govender

SMART, SEAMLESS AND SECURE:

THE TECH POWERING AFRICA’S NEXT BIG LEAP

AFRICAWIDE is not waiting for Africa’s digital transformation – it’s building it

Picture this: you walk into a bank and there’s no queue. You pay your bills at a kiosk instead of waiting in a government of ce for hours. You top up your mobile wallet in seconds, not minutes. Sounds like a dream. It’s already happening.

At Africawide, there’s no waiting for Africa’s digital transformation, the company is building it, making Africa’s digital future a reality.

As a leading systems integrator, the company brings together hardware, software and service integration to create real-world solutions for businesses, governments and communities that deserve better, faster and smarter services.

Africawide doesn’t just talk about ntech, connectivity, security and automation, it builds and deploys the technologies that make these buzzwords a reality.

INDUSTRIES POWERED BY AFRICAWIDE

• Banks

• Fintechs

• Governments

• Public services

• Transport hubs

• Retail

• QSRs (quick service restaurants)

• Telecoms

• Connectivity security

• Smart infrastructure

• Healthtech

• Greentech.

TELECOMS

AND ENTERPRISE NETWORKING SOLUTIONS – AFRICA’S DIGITAL HIGHWAY

No signal, no problem – Africawide has you covered. If your internet connection goes down at the wrong moment, it is immensely frustrating, but what if there were smarter, more reliable networks built for African businesses? Africawide is a virtual network enabler.

• Mobile virtual network operators: if you want to launch your own telecom service, Africawide provides turnkey solutions for businesses looking to enter the mobile network game.

• Enterprise networking: high-speed, low-latency networks built for banks, hospitals, corporate of ces and governments.

• Wireless communication: whether a rural community or a city skyscraper, Africawide creates seamless connectivity solutions that actually work.

Cutting-edge technology

One of Africa’s largest telecom providers using wireless backhaul solutions can expand affordable broadband to remote areas–because internet access isn’t a privilege; it’s a necessity.

Revolutionising self-service

A leading government agency can cut service wait times by up to 80 per cent after installing self-service kiosks for public services and licence renewals. Why queue when you can tap and go?

Real-world impact …

A major African bank implements digital onboarding and biometric verification at its ATMs, cutting down fraud cases by over 90 per cent.

SECURITY

AND SMART INFRASTRUCTURE SOLUTIONS – BECAUSE DATA AND ASSETS DESERVE PROTECTION

It’s 2025 – why are we still using keys? Security isn’t about hiring more guards or building bigger walls. It’s about smarter, artificial intelligence-driven technology that protects businesses, data and people.

• Biometric access and secure transactions: forget passwords –use your ngerprint, face or palm to verify transactions and secure business environments.

• Arti cial intelligence-powered surveillance: smart security that learns and adapts because cameras should do more than just record.

• Data protection and cloud security: nancial fraud? Not on Africawide’s watch. Its solutions ensure safe, encrypted and tamper-proof digital transactions.

AS A LEADING

SYSTEMS INTEGRATOR, THE COMPANY BRINGS TOGETHER HARDWARE, SOFTWARE AND SERVICE INTEGRATION TO CREATE REAL-WORLD SOLUTIONS FOR BUSINESSES, GOVERNMENTS AND COMMUNITIES.

Green-Tech & Health-Tech –Smarter Sustainable Solutions

Tech That’s Good For You, Good For The Planet. Future-Proofing Africa with Sunshine & Smarts. Africawide is at the forefront of integrating sustainable and smart technologies.

• Green-Tech Solutions: Solar-powered grids and energy storage ensure reliable, eco-friendly services, especially off-grid

• Smart Health Solutions: Automated check-ins, digital records, and telemedicine enhance healthcare access and ef ciency, bringing quality care closer to communities. AFRICAWIDE

Imagine this …

A remote hospital in East Africa doubles patient throughput after implementing smart check-in kiosks – because time spent waiting is time wasted.

SELF-SERVICE KIOSKS – THE FUTURE OF CUSTOMER EXPERIENCE

No staff? No problem. Self-service is the game-changer. Have you ever walked into a fast-food joint, looked at the queue, and walked right back out? Yeah, we’ve all been there. Now imagine skipping the line, placing your order at a touchscreen and getting served in half the time. That’s self-service magic.

Who’s winning with self-service?

• Banks: no more branch queues.

• Government services: tax payments, document printing, ID renewals, all in one place.

• Transport hubs: buy tickets, top up travel cards or check schedules.

• Retail & QSRs: order food, self-checkout, pay bills – no cashier needed.

• Healthcare: smart patient check-in and digital prescription processing.

Yes, we can

A global QSR chain can cut customer wait times by up to 50 per cent after deploying self-order kiosks. Faster service equals happier customers, which equals more revenue.

BIGGER WALLS. IT’S ABOUT SMARTER, ARTIFICIAL INTELLIGENCE-DRIVEN TECHNOLOGY THAT PROTECTS BUSINESSES, DATA AND PEOPLE.

WHY AFRICAWIDE? BECAUSE IT DOESN’T JUST TALK, IT DELIVERS

Africawide, isn’t just selling tech; it’s building Africa’s future.

• Future-ready hardware: built for Africa’s toughest environments.

• Seamless system integration: from banks to telecoms, Africawide connects it all.

• End-to-end solutions: design, deploy, monitor and support, Africawide does it all.

• Customer-centric approach: if it doesn’t improve ef ciency, accessibility or security, Africawide doesn’t build it.

The future of Africa is digitally connected and technologically enabled, and Africawide is leading this digital revolution. Are you ready to be part of it?

For more information: info@africawide.com www.africawide.com

Diversifying the payments landscape

While

cash remains one of the most popular payment methods in South Africa, in the past few years there has been a rise in other

payment solutions, diversifying the methods local consumers can use to buy goods.

By MEGAN ELLIS

Alternative payment solutions range from well-known solutions, such as credit and debit cards, to more recent technologies such as instant EFTs, mobile payments and QR codes. How can businesses ensure they provide seamless support for these increasingly diverse payment methods? That’s where multichannel payment platforms come in.

HOW MULTICHANNEL PLATFORMS CAN HELP BUSINESSES

Multichannel payment solutions allow customers to choose from a variety of payment methods when buying products. These solutions can be available online – through an e-commerce platform – as well as in stores.

Common payment methods include credit and debit cards, digital wallets (for example, Apple Pay and Samsung Pay), and contactless payments. However, to accept these different methods, a business needs a multichannel solution.

This comes with multiple bene ts, including increased market reach and conversion rates. David King, vice president of sales, MEASA, at ACI Worldwide, notes that supporting multiple payment methods through a

uni ed interface is essential to providing a seamless customer experience.

“Modern consumers shop through diverse methods – such as mobile apps, e-commerce sites and brick-and-mortar stores – making it essential for businesses to offer a seamless, multichannel payment experience,” King says.

He adds that providing support for these payment methods is a core part of the customer experience. “Payments play a pivotal role in the customer experience, reshaping how they engage and shop. A multichannel payment platform streamlines and optimises the entire payment process across multiple channels, enabling merchants to accept a wide range of payment methods, such as credit/ debit cards, digital wallets, alternative payment methods, and even instalment options, through a single, uni ed interface.”

These solutions bene t the customer, who can now choose their preferred payment method or even choose to pay in instalments. This, in turn,

Did you know?

ACI Worldwide’s research shows that offering multiple payment methods can significantly boost conversion rates. When merchants offer at least the top three payment methods tailored to the local market – rather than just a single, most popular option – they can potentially see conversion rate improvements of up to 30 per cent.

Source: ACI Worldwide

bene ts the businesses incorporating these platforms.

The advantages expand past conversion rates and ensuring customers can actually buy the products they want with their preferred payment methods. These solutions are also an important source of customer data.

Paul Kent, CEO of adumo, says implementing a multichannel payment solution can provide valuable data about customer spending habits, payment method preferences and geographical location. “These analytics enable businesses to make data-driven decisions, enhancing operational ef ciency and customer engagement.”

For example, a business can gather data on peak purchasing times and average spend to help with inventory and staf ng decisions. By identifying the payment options customers prefer, businesses can tailor their offerings. Meanwhile, geographical data is useful for targeted marketing and identifying expansion opportunities.

A multichannel payment solution not only provides businesses with more functionality when it comes to payments, but also

“THE RISE IN REAL-TIME PAYMENTS IN SOUTH AFRICA IS ALSO ENABLING SMALL BUSINESSES TO SEAMLESSLY INTEGRATE DIGITAL AND PHYSICAL PAYMENT CHANNELS.” – DAVID KING

David King

“IMPLEMENTING A MULTICHANNEL PAYMENT SOLUTION CAN PROVIDE VALUABLE DATA ABOUT CUSTOMER SPENDING HABITS, PAYMENT METHOD PREFERENCES AND GEOGRAPHICAL LOCATION.”

– PAUL KENT

enhanced insights that can be used to grow the business further. Using an end-to-end solution reduces the reliance on multiple service providers, while making it easier to expand into new sales channels.

Another bene t of implementing multichannel solutions is reducing cart abandonment. “Cart abandonment often results from limited payment options or complex checkout processes. This can be reduced by offering a seamless, exible and secure checkout experience,” Kent says. This leaves customers more satis ed with their experience, while businesses enjoy the increased revenue from additional completed purchases.

WHAT ABOUT SMALL BUSINESSES?

These bene ts aren’t only limited to large retailers and companies. Small businesses are also able to reap the bene ts of multichannel payment solutions. King says these are becoming more accessible to small businesses thanks to ntech innovations and developments in mobile technology.

“The expansion of mobile usage and the improvement of internet infrastructure further accelerate the adoption of such systems.

“The rise in real-time payments in South Africa is also enabling small businesses to seamlessly integrate digital and physical payment channels by facilitating instant fund transfers, reducing settlement delays

Fast fact

According to adumo CEO Paul Kent, cash remains the largest payment method in South Africa. He notes that until digital payment options mimic the convenience and immediacy of cash, adoption will remain low. However, it’s in the interest of businesses to move towards digital payment options as the use of cash increases consumer and merchant risk and increases costs.

and enhancing cash ow management, in turn boosting customer satisfaction and conversion rates.”

The launch of PayShap, in particular, is expected to drive growth and accessibility of different payment methods for small businesses.

Kent adds that adumo has designed its solutions to be affordable and scalable for small businesses. “We recognise the importance of empowering small-and medium-sized enterprises. Our solutions are designed to be affordable and scalable, ensuring that businesses of all sizes can access advanced payment technologies.

“Our Flow solution is an affordable stand-alone payment service tailored for small to medium businesses, offering them access to enterprise-grade solutions without upfront investments.”

MOVING TOWARDS MORE FLEXIBLE PAYMENT PLANS

Multichannel payment solutions don’t only allow for different payment methods, but also the incorporation of different payment plans like Buy Now, Pay Later (BNPL).

According to ACI’s 2024 Unwrapping Checkout Trends report, alternative payments, such as BNPL and digital wallets, grew 237 per cent and 209 per cent, respectively. The company notes that BNPL payments, in particular, experienced a notable surge.

In H1 2024, global BNPL transactions increased by 237 per cent, nearly tripling in volume. ACI attributes the rise to customers seeking out more exible payment methods that allow them to spread out their spending and budget more.

The popularity of this payment method is also apparent in South Africa. According to a report by ResearchandMarkets.com, South Africa’s BNPL market achieved a compound aggregate growth rate of 23.5 per cent from 2021 to 2024.

GETTING AHEAD OF THE CURVE

While alternative payment solutions still have plenty of room to grow in South Africa, businesses can get ahead of the curve by implementing multichannel platforms sooner rather than later.

Not only does this ensure fewer customers abandon their carts at checkout, but these platforms can provide insights essential to a business’s growth and trajectory. Businesses can also get ahead of emerging trends, such as the rise of BNPL plans, so their systems are ready to accept a diverse range of payment methods.

GET REAL

According to ACI’s 2024 Prime Time for Real-Time report, South Africa recorded 284 million real-time transactions in 2023. However, real-time payments only accounted for 1.7 per cent of payments by volume during that year.

However, ACI projects a compound aggregate growth rate of 21.6 per cent for 2023–2028.

The launch of PayShap in 2023 is expected to increase the growth of real-time payments thanks to its mobile-friendly payment system that claims to be more cost-effective than older solutions.

“PayShap is anticipated to provide the much-needed push for real-time payments growth in South Africa, but its impact has not yet been measured,” the report states. READ

Follow: Paul Kent www.linkedin.com/in/paulkentsa David King www.linkedin.com/in/david-king-53b82918

Download Prime Time for Real-time report

Paul Kent

CHOOSE WISELY ADAPT & EVOLVE, AVOID EXTINCTION CHOOSE WISELY ADAPT & EVOLVE, AVOID EXTINCTION

paxtechnology.com

THE EVOLUTION OF PAYMENT SOLUTIONS

Embedded payments offer security, flexibility and deep customer insights – and they’re getting more prevalent in the South African digital payment space, explains TREVOR CRIGHTON

At their most basic, embedded payment systems are payment options built into software applications or platforms, allowing users to make purchases without leaving the app or website. The world of embedded nance is much broader, branching into insurance, loans and the like –but in South Africa, we’re still reaching for the

South African retailers because of the lack

of Africa, our parent company Stripe as e-commerce, and several

recognising the value in providing a payment offering for the businesses using their service to run their business.”

Bronkowski shares the example of a software-as-a-service business focused on accounting. “Initially, it may be focused on adoption of its service, but down the line, it may nd there’s friction for users of its software in seamlessly being paid for their invoices. Once platforms realise there’s a need for embedded payments, they would nd value in building payments into their product and potentially down the line owning payments as part of their product offering,” he says.

Paycorp CIO Gavin Reubenson says while payments have traditionally been the domain of banks, nonbank companies – especially ntech rms – have been at the forefront of innovation in the embedded payment space. “Nonbanks have not been constrained by legacy systems and, as such, have embraced and

Fast fact

A new study from Juniper Research, the foremost experts in fintech and payment markets, has found that global transaction value from embedded payments (in-app and online platform-integrated payments) will increase 134 per cent by 2028, up from R19.9-trillion in 2024.

leveraged newer technologies, particularly application programming interfaces (APIs), to make it easier for businesses to embed payment systems directly into their platforms,” he says. “Nonbanks and ntechs understand the requirements for ease of onboarding merchants and that the ease of integration, coupled with rich features and multiple payment options, will lead to wider adoption of online payments.”

SECURITY AND THIRD PARTIES

With digital fraud increasing in South Africa, Reubenson says embedded payment systems can be more reliable and secure than third-party redirect systems, assuming that a business partners with and selects the correct embedded payment solution partner. “The user experience of an embedded payment solution is signi cantly better, as

“ONCE PLATFORMS REALISE THERE’S A NEED FOR EMBEDDED PAYMENTS, THEY WOULD FIND VALUE IN BUILDING PAYMENTS INTO THEIR PRODUCT.”

– JOEL BRONKOWSKI

Joel Bronkowski

“FROM A TRANSACTION SECURITY PERSPECTIVE, EMBEDDED PAYMENT SOLUTIONS REDUCE THE RISK OF PHISHING ATTACKS AND ENHANCE SECURITY BY KEEPING THE ENTIRE TRANSACTION WITHIN A CONTROLLED ENVIRONMENT.” – GAVIN REUBENSON

the transaction is seamless and frictionless – you are not being redirected to an external site for the payment, and once payment is completed having to be redirected back to the merchant’s site,” he explains.

“From a transaction security perspective, embedded payment solutions reduce the risk of phishing attacks and enhance security by keeping the entire transaction within a controlled environment. Additionally, embedded systems can leverage advanced security measures, such as tokenisation and encryption, to protect sensitive data.”

EARNING MORE THAN REVENUE

Every successful business knows its customers well – and embedded payment solutions offer the opportunity to gather even more information about them. “There is a huge opportunity to link nonsensitive payment data to the retailer data, which could include customer purchase behaviour, customer preferences and transaction history,” explains Reubenson.

“From the payment data, you can ascertain things like who the customer banks with and what kind of account they have at that bank. This information, coupled with the retail data, can be used to personalise marketing efforts,

Fast fact

The South Africa Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q1 2024 Update report demonstrates that the embedded finance industry in South Africa is expected to grow by 28.8 per cent on annual basis to reach R15.6-billion in 2024 and at a compound annual growth rate of 20.5 per cent during 2024–2029, reaching R39.5-billion by 2029.

improve customer experience and optimise inventory management. Ultimately, having access to and mining this data allows retailers to make more informed business decisions and build stronger customer relationships.”

Bronkowski says services such as Shopify have an embedded system, but also work with third-party providers because they aren’t able to roll out this offering to every market they operate. “I wouldn’t highlight safety as a primary concern for Shopify or users of Shopify. What I would highlight is that there’s far less friction for a merchant using Shopify Payments than a merchant that uses a third party, this is due to the depth in which Shopify has built its embedded payments. This technology also affords it the ability to roll out additional nancial services more easily,” he says.

WHERE’S THE TIPPING POINT FOR SOUTH AFRICA?

Bronkowski says if we’re comparing South Africa with Western markets, there are still many gaps that can be lled by services and platforms. “However, we are seeing an increase in the number of international platforms wanting to enter South Africa and the number of local homegrown platforms looking to embed payments to generate revenue. To reach a true tipping point, the market needs more education and a local product offering that makes developing embedded payments easier.”

Reubenson adds that while products such as PayShap have helped embedded payments gain traction, there is still a way to go before South African businesses fully adopt these solutions and offer them as the norm. “One of the catalysts for digital and embedded payments was the COVID-19 pandemic, which accelerated the shift towards digital payments, however, the use of cash remains strong. For the foreseeable future, cash and embedded payments will

LOCAL FINTECH REGULATION

The rise of fintechs in South Africa has created challenges for incumbents and introduced new regulatory risks in the financial services industry, according to a paper by Simphiwe K. Cele and Nhlanhla W. Mlitwa, “Fintechs in South Africa: Impact on regulation, incumbents and consumers” for the South African Journal of Information Management. The authors explain these challenges have created legal uncertainty because fintechs are not regulated like the incumbents, creating an imbalance in the system. The new challenges have forced industry regulators to expand the regulatory framework to incorporate fintechs, and this has been met with several challenges, including:

• There is limited experience in regulating fintech activities, services and products because many countries do not have enough expertise to regulate fintechs.

• Some countries, especially emerging countries, lack the resources to provide adequate responses and build regulatory capacity.

•International standards for regulating and supervising fintech activities are still in their infancy. Therefore, there is a concern that these limitations might result in cross-border regulatory arbitrage.

•There is a significant gap in managing cyber risk between high- and low-income countries.

need to coexist,” he says. “Digital payments and mobile wallets still need traditional on-ramps and off-ramps – APIs, combined with traditional card payments, will enable this. Today, PayShap is mostly a person-to-person solution, however, PayShap’s ‘request-to-pay’ feature has started rolling out, enabling person-to-business payments – an important milestone required for truly building adoption.”

Follow: Joel Bronkowski www.linkedin.com/in/joelbronkowski

Gavin Reubenson www.linkedin.com/in/gavin-reubenson-a277527

Gavin Reubenson

HOW CORE LEDGER TECHNOLOGY IS SIMPLIFYING SOUTH AFRICA’S PAYMENTS ECOSYSTEM

A unified payments ledger can boost transparency, reduce complexity and keep businesses agile, writes GABRIEL ROUX , managing director of StraTech

South Africa’s payments industry is experiencing a dynamic shift. New channels – mobile wallets, QR codes and real-time payment rails – render transactions more accessible yet more complex to manage. In this environment, core ledger technology has emerged as a vital solution for achieving end-to-end automation and trust.

We see core ledger technology as the central engine that not only captures every movement of funds, but also aligns closely with operational work ows, ensuring that each payment event is accurate, auditable and poised to trigger subsequent nancial processes. By providing a uni ed “source of truth,” core ledger systems help businesses and banks simplify payment ows, comply with regulations and seamlessly support new digital payment methods.

MITIGATING COMPLEXITY WITH A UNIFIED LEDGER

SERVING THE GIG ECONOMY

The gig economy – which includes drivers, couriers, marketplaces and freelance professionals – demands quick, transparent payouts. A programmatic core ledger allows a platform to automate disbursements across multiple stakeholders, for example, calculating a platform commission while sending the remainder directly to a driver’s account. Because everything is orchestrated via the ledger, payments can be routed instantly, and recipients can immediately access their funds. Crucially, these ledger transactions can impact the state of subsequent operational processes. Once a rider completes a trip and payment is con rmed in the ledger, it can automatically trigger noti cations, receipts or additional work ows such as analytics reporting. This interconnectedness is especially valuable in high-volume contexts where each transaction can initiate multiple events – ranging from inventory updates to compliance checks –without human intervention.

INTEGRATING EMERGING PAYMENT RAILs

South Africa is rapidly adopting new payment methods, including mobile money, QR-based transactions and real-time payment systems such as PayShap. Instead of creating a patchwork of separate systems, a central ledger approach uni es these channels under one umbrella. Whether a payment originates from a smartphone app or a direct bank transfer, it is standardised in its own ledger with its unique business rules.

FUTURE-PROOFING THE PAYMENTS LANDSCAPE

When the ledger operates as a “living” system, each transaction can trigger a series of actions such as fraud checks, loyalty points allocation or cross-border currency conversions. This allows organisations to expand services without losing track of funds or incurring substantial operational overhead. Time-sensitive nancial operations, such as collections, stakeholder payments and bank reconciliations, greatly bene t from this approach. This real-time synchronisation is particularly important for South Africa’s growing emphasis on instant payments –if money transfers happen in seconds, the ledger must keep pace.

HOW DOES THIS WORK PRACTICALLY IN AN ORGANISATION?

Over the last decade of implementations with clients, we have learned to blend deep expertise in programmatic ledgers with an understanding that each business has unique work ows as no two businesses are the same. By mapping those work ows into a dynamic ledger architecture, we see this helping organisations track the movement of funds and derive insights that in uence subsequent nancial or operational ows. It often starts with something small, for example, calculating fees, allocating taxes or splitting revenue among partners in real-time, and can then expand to the whole organisation.

Most payments in South Africa pass through a series of intermediaries – banks, ntech platforms and service providers – before nally settling. This multilayered journey often results in manual intervention, delayed settlements and data silos. A uni ed ledger addresses these pain points by recording every transaction step as a debit in one account and a credit in another. As each entry is balanced in real-time, reconciliation becomes more ef cient. A key advantage of this ledger-based approach is direct balance reconciliation with actual bank accounts. When a modern core ledger syncs continuously with a company’s or platform’s bank account, any discrepancy is agged immediately, dramatically reducing manual accounting tasks. This real-time matching process boosts accuracy and empowers nancial teams to focus on strategic initiatives rather than chasing down errors. Follow: Gabriel Roux www.linkedin.com/in/gabrielroux

A PROGRAMMATIC CORE LEDGER ALLOWS A PLATFORM TO AUTOMATE DISBURSEMENTS ACROSS MULTIPLE STAKEHOLDERS.

Gabriel Roux

ARTIFICIAL INTELLIGENCE VERSUS REAL CRIME

As criminals employ more and more sophisticated methods to separate people from their hard-earned money, financial services providers are leveraging artificial intelligence to help detect and prevent fraud.

By ANTHONY SHARPE

Fraud is big business in South Africa.

According to analysis by London Stock Exchange Group Risk Intelligence, it accounts for just over a quarter of all nancial crime in the country. Like so many aspects of our lives, fraud has joined the digital age in a big way, with new technologies opening up more and more ways for people to interact with money – and criminals to steal it.

The World Economic Forum estimates the global cost of cybercrime to have grown from R55-trillion to a staggering R192.6-trillion. Much of the recent growth can be attributed to arti cial intelligence (AI) tools now at criminals’ disposal, enabling them to craft sophisticated phishing messages, impersonate people’s appearances and voices, forge documents and more.

Thankfully, AI also represents probably the most effective tool in the ght against burgeoning fraud and cybercrime, says Rupesh Vashist, associate director in the technology, risk and cyber team at KPMG.

“With the advent of payment methods and the increase in the channels, fraudsters keep trying to learn newer ways to exploit the vulnerabilities in the system. AI serves as a great tool to identify fraud when the volume is high and has multiple dimensions.”

Vashist says AI is particularly effective against certain types of fraud where traditional

Fast fact

The South African Banking Risk Information Centre’s Annual Crime Statistics Report for 2023 (latest data) shows that digital banking fraud grew by 45 per cent year-on-year, with banking app fraud in particular surging by 89 per cent to account for 60 per cent of all digital banking crime.

rule-based methods fall short.

“For example, AI can help identify unusual login behaviour or anomalies using telemetry in case of fraudsters taking over customer accounts – a common fraud type in digital payments. Furthermore, in the case of synthetic identity fraud, AI is very effective in identifying anomalies in identity documents by comparing them with captive, open-source and subscribed data.

“TRAINING AI MODELS REQUIRES EXPERTISE IN DATA SCIENCE, BUT MANY ORGANISATIONS LACK THE NECESSARY TALENT OR RESOURCES.” – RUPESH VASHIST

Rupesh Vashist

“We have also observed some very effective use cases of AI in money laundering, where machine learning can detect unusual transaction ows and layering techniques, identifying shell merchants and hidden links

physical crime and fraud effectively payment to another and withdraw money from says, is becoming detecting this

anomalous behaviour and taking appropriate action to mitigate losses – for both the consumer and the nancial service provider (FSP).

In situations where a customer is the victim of fraud, a bank will often make what Hamilton calls a goodwill payment to compensate them, which represents an operational loss.

“When we make such a payment, it’s rst an opportunity to see where we faltered. Where could we bolster our AI and fraud detection capability? Where in our ecosystem is there a vulnerability? Could we do more at the point of origination of that payment?”

Secondly, Hamilton continues, the second part of it is examining what the other bank or third party to whom the funds are moving is doing. “This becomes an ecosystem issue. We as an industry need to work together to solve this. How are we enhancing our know-your-customer capability to ensure we don’t onboard fake pro les? What are we doing to use AI to detect that an account is being loaned out for fraudulent purposes?”

“WE AS AN INDUSTRY NEED TO WORK TOGETHER TO SOLVE THIS. HOW ARE WE ENHANCING OUR KNOW-YOUR-CUSTOMER CAPABILITY TO ENSURE WE DON’T ONBOARD FAKE PROFILES? WHAT ARE WE DOING TO USE AI TO DETECT THAT AN ACCOUNT IS BEING LOANED OUT FOR FRAUDULENT PURPOSES?”

–

RUFAIDA HAMILTON

Where AI can help, says Hamilton, is in recognising behaviour outside the norm. “The transaction values may tell a story that is different to what we know about an individual, say if funds are moving very rapidly, either to a crypto exchange or out of the ecosystem. That sort of transactional behaviour patterning is where we can actually enhance our offerings.”

INVESTING IN PROTECTION

Of course, for banks and FSPs to leverage the bene ts of AI, they need to invest in training and implementing robust solutions.

Dean Friedman, forensics partner at KPMG, says this is often as much a mindset challenge as a technological one.

“Fraud prevention is treated as an afterthought, with budgets skewed toward acquiring new customers rather than securing existing ones. AI and machine learning (ML) can detect fraud with far greater accuracy than traditional methods,

FRAUD HAS JOINED THE DIGITAL AGE IN A BIG WAY, WITH NEW TECHNOLOGIES OPENING UP MORE AND MORE WAYS FOR PEOPLE TO INTERACT WITH MONEY – AND CRIMINALS TO STEAL IT.

Rufaida Hamilton

“FRAUD PREVENTION IS TREATED AS AN AFTERTHOUGHT, WITH BUDGETS SKEWED TOWARD ACQUIRING NEW CUSTOMERS RATHER THAN SECURING EXISTING ONES. AI AND MACHINE LEARNING CAN DETECT FRAUD WITH FAR

GREATER ACCURACY THAN TRADITIONAL METHODS.”

– DEAN FRIEDMAN

Fast fact

In 2023, 69 per cent of South African consumers report having been the target of online, phone call, text messaging or email fraud attempts.

Source: Transunion’s Omnichannel Fraud report but only if they are given the right data, the right expertise and the right strategic importance. If FSPs fail to recognise this, they will continue to ght fraud with traditional tools, leaving themselves and their customers exposed.”

Nevertheless, from a technological perspective, implementing AI and ML into fraud prevention is always challenging, says Friedman. “The primary challenge is data –not just its availability, but the ability to use it effectively. FSPs collect massive amounts of transactional and behavioural data through customer interactions, each data point offering valuable insights into user behaviour. This includes data collected through mobile, web and general interactions. Much of this remains untapped, locked away in silos or underutilised due to a lack of proper analytics infrastructure. Often during analytics, each team is con ned to looking at a speci c piece of data for their purpose, meaning the big picture remains incomplete.”

Even when data is accessible, its quality may be questionable, adds Vashist.

“AI models are only as good as the data they are trained on, and poor-quality data –riddled with inconsistencies, gaps or biases –can lead to ineffective fraud detection.”

Vashist says training AI models requires expertise in data science, but many organisations lack the necessary talent or resources. “In addition, the key performance indicators for such initiatives may be outcome-based and aligned with the success of the initiative, but the efforts are often not rated. Fraudsters, on the other hand, have the appetite to fail, and they continuously adapt their tactics.”

DOWNLOAD

Annual Crime Statistics 2023 report

PROTECTION, NOT FRICTION

Implementing fraud prevention measures frequently introduces friction into transaction processing, requiring additional verification steps or delaying approvals, says Dean Friedman, forensics partner at KPMG. “This impacts transaction volumes and conversion rates, leading to pushback from customers and customer service teams.” Standard Bank’s head of payments in South Africa Rufaida Hamilton says this is a key area of concern for Standard Bank. “We want to protect customers without frustrating them. It’s a fine line. Enhanced artificial intelligence (AI) results in fewer false positives because the technology can create better patterning through machine-learning algorithms. We’re looking at a multitude of ways to use technology, including biometrics, to enhance protection while reducing friction. For example, AI is able to evaluate the type of transaction, the location where it occurred and even the way your phone is being held to validate your identity. That sort of information is available to financial service providers if customers consent to us using it.”

Follow: Rupesh Vashist www.linkedin.com/in/rupeshvashist Rufaida Hamilton www.linkedin.com/ in/rufaida-banoobhai Dean Friedman www.linkedin.com/in/dean-friedman-69942117

Dean Friedman

HARNESSING ANALYTICS TO DRIVE CUSTOMER-CENTRIC

GROWTH

Digital transactions are increasingly gaining prominence in consumer interactions and payment analytics has emerged as a transformative tool for businesses seeking to unlock customer insights, streamline operations and foster enduring loyalty, writes GABRIEL ROUX , managing director at StraTech

Analysing transaction data is a key tool for organisations to discern payment preferences, customise pricing strategies and even enhance security – all while crafting experiences that resonate with consumers. For South African enterprises navigating the competitive and rapidly evolving market, these capabilities are no longer optional but essential for sustainable growth, particularly as payments have become a critical aspect of the overall user experience.

DECODING CUSTOMER BEHAVIOUR THROUGH PAYMENT METRICS

Payment analytics transforms raw transaction data into actionable intelligence by tracking metrics such as preferred payment methods, average transaction values and regional spending patterns. For instance, a retailer might discover that 65 per cent of customers in Johannesburg prefer mobile wallet payments, while shoppers in Cape Town predominantly use credit cards. These insights enable businesses to optimise their payment infrastructure – ensuring gateways support high-demand methods, such as SnapScan or Masterpass, while allocating marketing resources to regions with untapped potential.

Analysing transaction velocity and chargeback rates is equally critical. A sudden spike in chargebacks may indicate systemic issues such as product dissatisfaction or fraudulent activity. Businesses can implement targeted solutions by correlating this data with customer service logs, enhancing product quality or re ning fraud detection algorithms.

STREAMLINING TRANSACTION FLOWS FOR FRICTIONLESS EXPERIENCES

When a customer uses their card, the transaction undergoes authorisation by the issuing bank, fraud checks by systems and then nal settlement. Each step presents opportunities for optimisation: reducing gateway latency by 200 milliseconds can increase conversion rates by ve per cent, while transparent fee structures minimise post-purchase disputes.

South African ntech leaders emphasise the signi cance of uni ed analytics dashboards that monitor key performance indicators across various channels. For example, a restaurant chain might discover that in-store card transactions have a 92 per cent success rate, compared with 78 per cent for online orders – this disparity underscores the necessity of upgrading e-commerce payment gateways. By addressing these friction points, businesses can diminish cart abandonment and bolster customer trust.

PERSONALISATION: THE KEY TO PRICING AND LOYALTY

Advanced analytics enables hyper-personalised pricing strategies aligned with individual customer pro les. This personalisation extends to loyalty programmes integrated directly into payment systems.

Machine learning algorithms analyse historical spending and purchasing patterns, device types, pro le data and browsing behaviour to adjust offers dynamically. For example, Dis-Chem’s successful integration of Vitality rewards increased repeat transactions by 34 per cent within six months by offering instant pharmacy cashback for healthy purchases.

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COMBATING FRAUD THROUGH PREDICTIVE ANALYTICS

South Africa’s 22 per cent year-on-year rise in digital payment fraud demands robust countermeasures. Modern fraud analytics combines machine learning with behavioural biometrics to ag transactions that deviate from established patterns. For example, a customer who typically makes R500 purchases on weekends would trigger alerts if a R15 000 transaction appears on a Tuesday morning. These systems also reduce false positives that plague traditional rule-based checks. By analysing 200+ data points – including device ngerprints and transaction velocity – businesses achieve 98 per cent fraud detection accuracy while minimising legitimate customer declines.

BUILDING A FUTURE-READY PAYMENT STRATEGY

For South African enterprises, the path forward involves three strategic pillars:

• Unified data integration: consolidates siloed transaction data from point-of-sale systems, e-commerce platforms and mobile applications into centralised analytics engines.

• Artificial intelligence-driven decision-making: deploys predictive models to anticipate market shifts, such as rising demand for Buy Now, Pay Later options among Gen Z consumers.

• Ethical personalisation: achieves a balance between hyper-targeted offers and transparency while maintaining data integrity and ensuring customers understand how their data improves their experiences.

As payment ecosystems become increasingly complex, businesses harnessing these tools will not only survive, but also thrive, transacting with the precision of a data scientist and the empathy of a trusted partner. In South Africa’s fast-growing and vibrant digital economy, the future belongs to those who recognise that payments are not merely a mundane process but a golden thread linking operational ef ciency to human-centred growth.

PROGRAMMATIC CORE LEDGER ALLOWS A PLATFORM TO AUTOMATE DISBURSEMENTS ACROSS MULTIPLE STAKEHOLDERS.

The mechanics of payment processing –from card authorisation to fund settlement –directly impact customer satisfaction. Follow: Gabriel Roux www.linkedin.com/in/gabrielroux

FROM DATA TO INSIGHTS

Payment analytics can be a game-changer for businesses that apply it smartly, writes DAVID KING, vice president of sales, MEASA, at ACI Worldwide

In today’s digital economy, payments are no longer just transactions – they can become data goldmines to transform how businesses operate, helping them unlock revenue opportunities, reduce fraud, enhance customer experiences and optimise operational ef ciency. Payment analytics extracts actionable insights embedded in payment transactions to empower decision-making based on data.

An effective payment strategy is built on three key foundational pillars: conversion, growth and cost of ownership, with payment analytics as the driving force behind continuous optimisation. By leveraging data-driven insights, businesses can track speci c key performance indicators and implement targeted initiatives to achieve measurable enhancements.

BOOSTING CONVERSION RATES

Every transaction holds data that reveals who bought what, where and when, along with how they paid. Payment analytics provides insights that can help improve every step of the customer payment cycle. By identifying and reducing friction points to optimise online or of ine checkouts, businesses can elevate customer experience and boost higher conversion by geotargeting and tailoring promotions, products and services.

Payment analytics can be used as an early warning system to detect and address issues that can cause false declines while simultaneously agging potential fraud risks that can disrupt business operations, leading to nancial and reputational loss.

DRIVING BUSINESS GROWTH

Payment analytics provides a clear view of transaction volumes and trends, enabling accurate forecasting for data-driven capacity planning and resource allocation. As transaction volumes grow, peak season strategies can be formulated to meet customer demands and preferences by comparing and analysing sales patterns and payment trends.

Implementing alternative payment methods, such as digital wallets, mobile payment and Buy Now, Pay Later, can offer customers more payment exibility and reduce cart abandonment. However, it’s not enough to simply offer a myriad of payment methods – businesses must understand which payment methods and transaction behaviours drive the most revenue so they can tailor their sales strategies.

Subscription-based businesses, for example, can leverage advanced technologies, such as machine learning or arti cial intelligence (AI), to generate predictive analytics that can identify customers at risk of cancelling and offer them personalised incentives for customer retention.

REDUCING COST OF OWNERSHIP

From the cost of ownership perspective, payment analytics provides valuable insights for businesses to identify cost-saving opportunities, such as optimising payment processing routes, negotiating better rates

PAYMENT ANALYTICS PROVIDES INSIGHTS THAT CAN HELP IMPROVE EVERY STEP OF THE CUSTOMER PAYMENT CYCLE.

with payment providers and reducing chargeback or fraud-related losses.

By analysing transaction patterns and settlement times, cash ow management can be optimised to reduce payment delays and promote more ef cient nancial planning that improves overall liquidity.

Many organisations operate with fragmented payment infrastructure, which leads to integration challenges, operational inef ciencies and costly customisation and maintenance. Payment analytics breaks down backend data silos by centralising transaction data across systems and reducing the total cost of ownership by minimising data latency and redundancies.

THE HEART OF INTELLIGENT PAYMENTS ORCHESTRATION

Intelligent payment orchestration seamlessly integrates real-time payments, AI-driven fraud prevention and transaction optimisation to create a smarter, more secure payment ecosystem across all payment types. This is where ACI stands out. As a leader in payment intelligence with decades of experience in machine learning, our use of AI augmentation in anti-fraud and anti-money laundering capabilities sets us apart from any other platform or solution on the market.

The complexities inherent in payments present both a challenge and an opportunity for businesses striving to drive innovation. Businesses relying on legacy platforms that aren’t cloud-native or digital- rst risk falling behind the curve of payment modernisation and lagging behind their competitors. At the same time, regulatory requirements become more stringent with rising fraud, making modernisation not only a competitive advantage, but an imperative, too.

A modernised and well-orchestrated payment platform with payment analytics at the core enables intelligent payment routing, reduces false declines and optimises the payment mix for customers. The result? A seamless payment experience that delights customers.

Follow: David King www.linkedin.com/in/david-king-53b82918

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