South Africa Real Time Payments Market Size (2024 - 2029)

The South Africa Real Time Payments Market is poised for significant growth, driven by regulatory support and a shift towards digital payment methods. This expansion is part of a broader effort to enhance financial inclusion and reduce cash reliance, as outlined in the South African Reserve Bank's Vision 2025. The market's development is further accelerated by the increasing integration of fintech, telecom companies, and retailers into the payments landscape, reflecting a rapid digital transformation. These trends are expected to substantially increase the market's scale and impact over the forecast period.

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Market Size of South Africa Real Time Payments Industry

Real-Time Payments Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.41 Billion
Market Size (2029) USD 2.04 Billion
CAGR (2024 - 2029) 37.97 %
Market Concentration Low

Major Players

Real-Time Payments Market Key players

*Disclaimer: Major Players sorted in no particular order

South Africa Real Time Payments Market Analysis

The South Africa Real Time Payments Market size is estimated at USD 0.41 billion in 2024, and is expected to reach USD 2.04 billion by 2029, growing at a CAGR of 37.97% during the forecast period (2024-2029).

Real-time payments typically focus on low-value retail payment systems (RPS); they differ from real-time gross settlement systems (RTGS) and distributed ledger payment systems.

  • In addition to meeting the demands and expectations, real-time payments have generated interest from regulators, competition authorities, and payment service providers. Regulators believe that instant payments will likely expand access to banking services, support economic growth, provide alternatives to Visa/Mastercard networks, and reduce the use of cash and cheques.
  • Financial inclusion is one of the main objectives of the South African Reserve Bank's (SARB) Vision 2025, particularly in digital inclusion. Although 80% of South Africans have a bank account, most consumer transactions are still cash-based. However, progress has been made to broaden and deepen financial inclusion in the country.
  • Vision 2025 sets out the imperative for the public and private sectors to collaborate for in-depth financial inclusion, reduce the reliance on cash, and encourage digital payment methods to achieve more inclusive and sustainable economic growth. This is expected to increase the rate of real-time payments in the country.
  • Additionally, the growing regulatory trends toward a fintech-friendly payments environment signify that the country is moving in a digital direction, with the local payments landscape expanding rapidly to include fintech, telecom companies, and even retailers.
  • Accepting digital payment methods is expected to improve post-COVID-19 and play a more vital role in the long term. With cash being seen as a potential carrier for the virus, governments and regulatory bodies discourage its use. These developments are expected to boost the overall market.

South Africa Real Time Payments Industry Segmentation

Real-time payments, or RTP, are payments that are begun and settled nearly immediately. It is the digital infrastructure that facilitates real-time payments. Ideally, real-time payment networks provide 24x7x365 access, which means they are always online to process transfers on any given day or time.

The South Africa real time payments market is segmented by Payment type the market is segment into P2P and P2B.The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Type of Payment
P2P
P2B
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South Africa Real Time Payments Market Size Summary

The real-time payments market in South Africa is poised for significant growth, driven by a shift towards digital payment methods and regulatory support aimed at enhancing financial inclusion. The South African Reserve Bank's Vision 2025 emphasizes digital inclusion, encouraging collaboration between public and private sectors to reduce cash reliance and promote digital transactions. This initiative, alongside the growing fintech-friendly regulatory environment, is expected to accelerate the adoption of real-time payments. The market is witnessing increased interest from regulators and payment service providers, who see instant payments as a means to expand banking access, stimulate economic growth, and offer alternatives to traditional card networks. The post-COVID-19 landscape further bolsters this trend, as cashless transactions gain traction due to health concerns.

The South African payments landscape is rapidly evolving, with technological advancements and changing consumer behaviors driving the demand for real-time payment solutions. The proliferation of smartphones, digital payment cards, and POS systems at retail terminals are key factors contributing to market expansion. Major players like Mastercard and Network International are innovating payment gateways, while local initiatives such as BankservAfrica's rapid payments program and the launch of PayShap by the South African Reserve Bank highlight the industry's dynamic nature. The market is becoming increasingly competitive, with global and local players like PayU and Zapper enhancing their offerings to capture market share. This competitive environment, coupled with significant investments and partnerships, is expected to further propel the growth of real-time payments in South Africa.

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South Africa Real Time Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Evolution of the payments landscape in the country

    4. 1.4 Key market trends pertaining to the growth of cashless transaction in the country

    5. 1.5 Assessment of COVID-19 Impact on the Foodservice Packaging Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Payment

      1. 2.1.1 P2P

      2. 2.1.2 P2B

South Africa Real Time Payments Market Size FAQs

The South Africa Real Time Payments Market size is expected to reach USD 0.41 billion in 2024 and grow at a CAGR of 37.97% to reach USD 2.04 billion by 2029.

In 2024, the South Africa Real Time Payments Market size is expected to reach USD 0.41 billion.

South Africa Real Time Payments Market Report Snapshots

Real Time Payments Market in South Africa Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)