South Africans are changing how they pay for things faster than ever. A new “State of Consumer Payment in South Africa” report by Stitch in partnership with a global research firm, Censuswide, shows that consumers are quickly moving away from using cash and cards, and are choosing digital payments instead.
The 2025 report, based on a survey of 2,000 South Africans, found that while cash and cards remain part of daily life, digital wallets and direct-from-bank payments are quickly becoming the preferred ways to pay, especially online.
Pay by Bank options, such as Capitec Pay, have seen the fastest growth. These methods offer instant, secure transfers and are increasingly favoured over traditional cards and cash. Merchants are responding, integrating these solutions to meet consumer demand for speed and reliability.
Digital wallets, including Apple Pay, Google Pay, and Samsung Pay, are also gaining traction. The report noted that, soon after their introduction, many consumers switched from using cards to digital wallets, drawn by the convenience of one-click payments and enhanced security features like biometrics.
“When we launched our first report on consumer payments preferences in early 2023, PayShap and direct bank APIs such as Capitec Pay had not yet come to market, digital wallets and even mobile money remained nascent and Pay by bank (previously known as Instant EFT) was just starting to take on cards as the second most preferred online payment method,” Stitch noted
The rise of Buy Now, Pay (BNPL) solutions is also notable. While not as widespread as digital wallets or bank payments, BNPL is popular for larger purchases, particularly among younger consumers. Retailers offering BNPL report higher average basket sizes and fewer abandoned transactions.
However, not all payment methods are thriving. Cash usage continues to decline, especially for point-of-sale transactions. Some retailers, such as several Woolworths coffee shops, have stopped accepting cash. Manual EFTs are also falling out of favour due to slow processing times and higher risks of failed payments or fraud. These are being replaced by real-time bank APIs and instant payment rails.
Traditional card payments are still widely used, but their dominance is fading. More consumers now see cards as less convenient compared to faster, more secure digital alternatives.
What’s driving the shift?
South Africans expect instant, frictionless payments on which digital wallets and bank APIs deliver, making them more attractive than cards or cash. Visible security features like biometrics and two-factor authentication are now standard expectations. Consumers actively look for these before completing a transaction. Shoppers want seamless payment options across online, in-app, and in-store environments. Businesses that offer these omnichannel (unified payment) experiences are seeing increased customer loyalty.
Who risks being left behind?
While the shift to digital is clear, it is not universal. Rural communities, older South Africans, and those without reliable internet access may be excluded from this rapid transformation. As more businesses go cashless, there is a real risk of leaving some consumers behind.
On the brighter side, there are signs that people can adapt when given the right support. For example, millions of older and rural South Africans who once collected their SASSA grants in cash now receive their money on payment cards. Even Metrobus, popular with older passengers, has moved to a cashless system. These examples show that, with a bit of help and digital know-how, many people can successfully make the switch to new ways of paying.
For South African businesses, integrating new payment methods and prioritising user experience are now essential. The winners will be those who deliver secure, instant, and seamless payment experiences, without forgetting the needs of customers who still rely on traditional methods.
In the coming years, the ability to pay quickly and securely will not just be a convenience, but a competitive advantage.
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