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Payment Gateways South Africa


“This report was compiled by Transact Connect, a private company providing electronic payment expertise in various disciplines to Payment System Operators, Financial Institutions, Retail Houses, Corporate Sectors and Government Agencies including Central Banks.



South Africa is considered the most well-developed economy on the African continent and is characterised by two distinct sub-economies. Eighty percent (80%) of the 57 million population transact and conduct business with all the characteristics of a typical emerging economy, while the balance of the population transact in a manner that mimics most developed economies. The implication of this is that all methods of payment are available in this market for each market segment.

A large section of the population still transacts mainly using cash and traditional debit card. However, in the last few years, this segment has increased its adoption of new Methods of Payments (MOPs). This has been driven in large part by:

  • Mobile phones used to make purchases, such as content /airtime etc.
  • An increase in the second-tier banks offering innovative products that increase the level of financial inclusiveness within this segment.

Payment Gateways as such gives consumers the ability to perform payment transactions using a variety of traditional and new MOPs. These transactions occur within a well-established and regulated interoptable

environment, which includes a variety of stakeholders. Such stakeholders include, the South African Reserve Bank, Payments Association of South Africa, BankservAfrica, Banks and Retailers amongst others.

This detailed 97-page report provides market intelligence of all participating South African Payment Gateways (traditional switching and online) and participating institutions, their background, stakeholders, service

providers and customers. We focus on each of their intended strategies, outline their products and services and systems infrastructure.

Included explore:

  • The South African Market Assessment with current relevant statistics giving a general overview regarding the Commercial Environment and rise of Digital Trends.
  • The Regulatory Environment with emphasis on the framework such transactions occur within.
  • The Banking Environment is central to most forms of MOPs and as such we outline these to include Issuing, Acquiring and the associated Interchange Model.