South Africa’s business scene is characterised by exciting possibilities. Favourable economic conditions are signalling the potential that local enterprises possess.
For many, it’s a chance to take stock, align themselves with current conditions, and capitalise on new market opportunities.
And like with any business, the ultimate objective is growth, writes Mpho Sadiki, MD: merchant services, Africa at Network International and Payfast by Network.
But what drives that growth exactly? It’s the ways that Mzansi’s merchants and their customers choose to pay for their goods and services.
The shift towards digital payments marked a major turning point, but it was only the beginning. Emerging trends continue to shape South Africa’s payments landscape, creating new opportunities for merchants to evolve and unlock more value.
With large-scale changes on the horizon, driven by the South African Reserve Bank’s ongoing payments modernisation efforts, the next phase of transformation may arrive sooner than expected.
With that said, let’s break down the trends that are set to reshape the payments industry and, in turn, physical and digital retail environments this year.
Freedom of choice and the diversity of payments
While cash and card payments still dominate in South Africa, they’re no longer the sole contenders in consumers’ payment repertoires.
Increasingly, consumers are moving beyond the physical wallet altogether, gravitating towards digital payment methods that mirror the broader shift towards a more connected, technology-driven economy.
According to Payfast by Network State of Pay 2025 (the “Report”), while debit and credit cards remain the most commonly used payment methods for online shoppers, alternative digital payment methods are catching up.
Account-to-account (A2A) payments and methods such as Instant EFT are becoming particularly prominent, supported by benefits such as lower transaction fees and near-instant access to funds.
These advantages appeal to both formal and informal retailers, with immediate settlement proving especially critical for informal ones.
Meanwhile, Buy Now Pay Later (BNPL) continues to show strong growth, further signalling a shift in how South Africans prefer to pay.
How South Africans pay, and the payment choices that merchants offer them, will reshape the relationship between the two and open the door to further diversification in the years ahead.
This relationship also sits at the heart of changes that industry leaders like Payfast by Network, and its parent company Network International, are witnessing and responding to. The ecosystem is starting to mature and how payment providers help facilitate that maturation will be the measure of future success.
Open banking is open for business
A digital economy can’t function effectively when connectivity is unreliable. Retail customers expect speed, convenience and a seamless experience, not only when transacting, but in the value-added financial services that providers make available to them.
However, with rising expectations comes meaningful opportunities.
Open banking has already demonstrated its value in South Africa. Financial institutions are partnering with non-bank providers to securely share financial data to offer a broader range of services.
Solutions such as Capitec Pay, Absa Pay and PayShap are examples that eliminate friction from the payment experience, giving consumers faster, simpler and more secure ways to pay.
By removing barriers between systems and making transactions smoother, open banking helps merchants and consumers engage more easily.
The outcome is a more inclusive, accessible digital economy, one that supports growth and ultimately contributes to healthier margins for businesses of all shapes and sizes.
Digital payments propel business growth
What started as a nice-to-have for your business is now a non-negotiable. As the Report reveals, most merchants now view digital payments as essential engines of growth, accelerating checkout speed, reducing dependence on cash, opening new marketing and customer‑engagement opportunities, and ultimately driving higher sales.
Critically, adopting and offering multiple digital payment methods is no longer the operational challenge it once was. Gone are the days when merchants had to juggle numerous platforms, point‑of‑sale (POS) devices, or applications to meet customer expectations.
What small businesses need are solutions that are simple, centralised and designed to keep them in control of their payment ecosystem.
With these kinds of tools in place, their potential markets expand, and they are better positioned to pursue new opportunities, such as unified commerce and cross‑border trade.
South Africa’s payments sector is well positioned for accelerated advancement, propelled by digital payments that enable growth and broader economic progress, supported by rapid fintech innovation and a continued push toward greater financial inclusion.
The trends shaping the industry today will define our future, one that embodies key principles such as choice, simplicity, and convenience.
With the support of a reliable payments partner, businesses can confidently seize the opportunities that emerge in this evolving landscape.