South Africa is Rapidly Digitizing, So Are Its Economy and Payment Methods. Here Are South Africa’s Top Payment Methods.
Selling directly to consumers and accepting B2B payments in South Africa requires a deep understanding of South Africa’s top payment methods. eCommerce merchants in South Africa are supporting diverse payment methods to support growth to an expected CAGR of 9.8% from 2020 to 2027 and reach a value of US$ 7.9 Billion. South Africa’s growing tech-savvy consumer base makes the country a lucrative market for merchants that understand local eCommerce trends and customer expectations.
Top South African eCommerce Trends
- 89% of the adult population owns a cell phone, one of the largest figures on the continent (Pew Research Center). And 45% of South Africans use mobile phones for more than four hours every day (GeoPoll)
- According to a Deloitte study, more than 70% of South Africans are shopping online at least once a month. And 2 out of 3 anticipate doing more online shopping in the coming year (Deloitte)
- 30% of users send and receive payments on their cell phones (Pew Research Center).
- In 2020 there were more than 18 million eCommerce users in South Africa (Research and Markets)
- The largest segment of South African eCommerce is fashion, representing 31% of revenue, followed by toys/hobby (27%) and electronics/media (18%) (eCommerceDB).
- Despite potential economic challenges from high unemployment and increased inflation, overall the eCommerce market is projected to grow by 10% annually over the next four years (eCommerceDB).
- South Africa’s eCommerce sector is growing faster than ever. In 2020, South Africa’s eCommerce grew by 66% compared to the year before, primarily due to restrictions placed on traditional retail stores. However, eCommerce has maintained is popularity as restrictions have eased (Deloitte)