By Jason Sive, CEO of Mobicred and RCS Digital Executive
24 March 2025: In recent years, the way consumers, financial service providers and retailers handle payments has undergone a significant transformation. The aggressive rate at which digital solutions are being adopted in South Africa has placed digital and traditional payment solutions at a crossroads, compelling the industry to adapt to the shifting expectations of consumers.
The challenge this presents is how financial service providers (FSPs) can strike a balance between personalisation, transparency, and integrating digital advancements without alienating customers who still rely on traditional solutions.
Here are eight key trends that are shaping South Africa’s credit and payment landscape:
1. Mobile is everything
While mobile payments are not new, their rate of adoption has increased aggressively. Small fintech startups that were unburdened by legacy systems led the way in innovation, but the larger financial enterprises were responsible for mass adoption. This has led to mobile innovations like tap-to-pay going mainstream, resulting in many customers replacing physical wallets with their phones.
2. Online vs. in-store
Customers who shop online expect a seamless payment experience in physical stores. Digital payment service providers like Mobicred, originally an e-commerce solution, have expanded into in-store platforms so that customers who shop online can now just as easily transact in-store.
Many retailers were initially worried that allowing other brands to be visible in their stores would dilute their own brand, but they soon realised that offering alternative payment options drives adoption and improves their sales. Today you’ll see many digital payment companies and lenders vying for visibility in retail stores. Larger institutions, traditionally slower to adapt, have had to streamline their services to compete with the agility of fintech startups because customers now expect fast, seamless transactions.
3. Digital simplicity is non-negotiable
Customers demand convenience making secure mobile apps a basic requirement for FSPs but digital simplicity must be prioritised. This means constantly refining the customer experience. For large, traditional financial institutions, the transition to this kind of digital-first thinking is often challenging and many have hired separate digital teams to avoid being hindered by legacy systems. Fintech startups, which are inherently digital-first, are pushing the industry to adopt more agile development models because they understand a customer will just as quickly delete an app as they would abandon a cart if the experience isn’t smooth and intuitive.
Cybersecurity remains a top concern as retail finance increasingly moves into the digital realm. In response, biometric authentication tools have matured significantly, offering secure, frictionless methods of verifying identities. In 2025, customers are using facial recognition and fingerprint scans to authorise payments or access credit facilities, reducing reliance on traditional passwords and minimising fraud risks. Retail finance providers are also investing heavily in AI-powered fraud detection systems capable of identifying anomalies in real-time. These systems monitor purchasing patterns and flag suspicious activities, ensuring both customers and businesses are protected from cybercrime.
5. Personalisation vs. transparency
Balancing personalisation with data privacy is an ongoing challenge - some customers expect tailored financial products, while others prioritise data security. In South Africa, regulators tend to take a conservative stance. Over time, the industry will need to find the right balance that satisfies customers, regulators, and service providers.
Financial wellness is also becoming a key focus and many FSPs are investing in customer education. Digital tools make it easier to promote financial literacy and contribute to more informed and responsible consumers. This is particularly important in South Africa, where financial conversations have historically been limited. Encouraging financial literacy from an early age can create long-term economic stability.
6. The human touch is still in demand
Despite the rise of digital interactions, many consumers still prefer human engagement, especially when dealing with complicated financial matters. Some people assume that younger generations only want app-based interactions, but at Mobicred, the majority of younger customers prefer WhatsApp for communication. There are still customers who value phone conversations, particularly when there’s a problem to sort out.
The expectation for immediate support, even on weekends, is growing, making real-time response capabilities a necessity rather than a luxury, but FSPs must offer multiple engagement channels, from AI-driven chatbots to traditional call centres.
7. Crossing financial boundaries
The growth of cross-border payment and innovations in blockchain technology are improving international payment processes. At the same time, financial services are becoming integrated into non-financial platforms. Telecom providers, retailers, and other businesses are embedding financial products such as insurance or credit facilities directly into their apps which increases accessibility and convenience. For instance, online retailer Takealot recently launched “Takealot.credit” – an online credit facility on Takealot.com that is powered by Mobicred.
In addition, RCS has strategic partnerships with payment platforms, such as Zapper, wiCode, PayU, Payfast and Peach Payments enabling their customers to pay seamlessly in the way that suits their individual preferences.
8. Digitally-savvy consumers
The challenges that once hindered digital adoption are decreasing. Younger consumers are more financially literate and tech-savvy than previous generations who required extensive education campaigns. However, FSPs must continuously refine their platforms and user experiences, including necessary security measures, to stay ahead of customer expectations.
The shift towards mobile-first, personalised, and embedded financial solutions is inevitable, but the companies that succeed will be those that maintain trust, security, and user-centric innovation.
