South Africa’s digital economy is poised for exponential growth, fuelled by the rising demand for convenience, choice and an omnichannel experience. Now, credit providers, retailers and fintech innovators must accelerate the rollout of cashless payment options to deliver the seamless, frictionless customer journeys that consumers expect.
The payments evolution: from plastic to digital
Large-scale smartphone penetration, rapid fintech innovation and the expansion of South Africa’s e-commerce ecosystem, have created the perfect socioeconomic environment for the rise of contactless payments.
Encouragingly, society is embracing these changes. South Africans are becoming more comfortable with shopping, paying and borrowing using tap-to-pay cards, QR codes and mobile wallets., in collaboration with Visa, found that as much as 60% of South Africans prefer digital wallets over physical ones. The percentage of consumers using digital wallets continues to grow year on year.
Cashless retailing is the key to unlocking a future that can harness the buying power of younger generations, improve access to the digital economy and enhance customer value.
To fully realise this potential however, stakeholders need to move beyond viewing digital payments as merely transactional and start treating them as strategic tools for economic empowerment, customer engagement, and long-term market growth.
RCS pushing the needle on digital commerce
As a leader in South Africa’s cashless transition, RCS is at the centre of this critical shift. Currently, RCS eCommerce is growing at a rate of 50% year-on-year. Several strategic steps have enabled RCS to act on this unique positioning.
These include:
- An expanding shopping network: Over the last year, RCS has strategically grown its retailer network, allowing account customers to use their cards to shop in-store and online at Dis-Chem, Computicket, Baby City, Toys R Us, Babies R Us, Leroy Merlin and Bash.
Most recently, RCS added Sixty60 to its shopping network, enabling all RCS store card holders the ability to purchase groceries from Checkers and larger general merchandise products like TVs, prams, tents and braais from Checkers Hyper on credit (with up to 55 days’ interest-free). All of this delivered in as little as 60 minutes.
· Mobile-first mindset: RCS customers have full access to an online credit facility. This offering is constantly being enhanced to align with market expectations. RCS off a full digital onboarding for store credit. For customers, this means no paperwork and no queues.
· Creating a seamless omnichannel experience: The widespread adoption of online shopping doesn’t mean that traditional, in-store retail should be left behind. For RCS, the answer lies in shaping a seamless omnichannel experience – customers can use their RCS Store Card to shop in-store or online at thousands of retailers.
· Expanding the in-store experience with mobile credit
Beyond online shopping, Mobicred is enabling seamless in-store transactions through its integration with Yoyo technology.
Customers can now use their Mobicred accounts at thousands of physical retailers; from major electronics outlets like iStore and Incredible Connection, to fashion stores such as Cape Union Mart and Pick’nPay Clothing, and even restaurants including Spur, Ocean Basket and Nando’s. By providing a unique wiCode in the Mobicred app at point of sale, users enjoy a consistent and contactless payment experience that brings digital convenience into everyday retail environments.
· Powerful collaboration with Payment Gateways: The RCS eCommerce Team is working closely with PayU, Payfast and Peach Payments - South Africa’s largest payment gateways - to accelerate the acceptance of RCS on South Africa’s largest online retailers.
· Enabling contactless Payments: RCS Store Cards now support modern tap-and-scan payments. For example, customers can use the wiCode or Zapper mobile apps to pay from their RCS account at thousands of merchants, making store-credit transactions as easy as a smartphone tap.
· RCS card goes digital: RCS issues a non-plastic store card instantly through its mobile app. Once approved, customers can retrieve their RCS DigiCard details anytime for online shopping – no need to wait for a physical card.
How to make sure you shop securely
For many South Africans, who have operated within a predominantly cash-based economy, the shift towards digital payments can be daunting. The ability to shop conveniently and to have many choices on how to pay are only two of the boxes that need to be ticked. The third box is security.
By following these 7 simple but powerful shopping guidelines, South Africans can shop with greater peace of mind:
1. Download apps from trusted sources: only install banking and payment apps from official platforms like the Google Play Store or Apple App Store and regularly update your device’s software for the latest security patches.
2. Protect your mobile device: use a secure screen lock (PIN, fingerprint, or facial recognition) on your smartphone.
3. Check your transaction alerts: you’ll automatically receive instant transaction alerts from RCS—be sure to check them so you can spot anything unusual right away.
4. Keep your information private: never share sensitive banking details such as passwords, OTPs, or card numbers with anyone, even if they claim to be from your bank.
5. Leverage technology: contactless payments are designed with multiple layers of protection, including encryption and unique transaction codes that make them safer than traditional swipes.
6. Avoid using public Wi-Fi for transactions: don’t use unsecured networks when accessing mobile banking apps or completing purchases. It’s safer to use your mobile data or private home network.
7. Report suspicious activity immediately: if you suspect fraud or notice unauthorised transactions, contact your bank or service provider right away to freeze or block affected accounts.
By following these practices, South Africans can confidently tap, scan or wave their way into the cashless economy.
