PAYMENTS STUDY REPORT

2023
Executive summary
© South African Reserve Bank

In this first edition of its Payments Study Report, the South African Reserve Bank (SARB) provides key insights into consumer behaviour and preferences in relation
to the payments instruments available in the Republic of South Africa.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without fully acknowledging
the author(s) and this Payments Study Report as the source.

This SARB Payments Study Report is written by staff members of the SARB or its consultants under the auspices of the SARB. While every precaution is taken to
ensure the accuracy of the information, the SARB shall not be liable to any person for inaccurate information, omissions or opinions contained herein.

Comments and enquiries relating to this Payments Study Report are welcomed and should be addressed to:

Head: National Payment System Department

South African Reserve Bank
P O Box 427
Pretoria 0001
Tel. +27 12 399 6550
Email: [email protected]

http://www.resbank.co.za

Produced and printed by the SARB.

CONTENTS

1. Introduction 1
2. Survey methodologies 2
3. Profile of study participants 4
4. Income profiles 6
5. Insights on payment methods 8
5.1 Cash payments 9
5.2 Debit card payments 11
5.3 Credit card payments 12
5.4 Internet banking and banking app payments 14
5.5 Sending money 16
5.6 Other payment methods 17
5.7 Crypto assets 18
6. Investments 19
7. Digital transformation 20
8. Debt and debt management 21
9. Conclusion 22
10. Survey specifications 23
Annexure A: Payment method definitions 24
Abbreviations 25

Figures
Figure 1: Race profile across both surveys 5
Figure 2: Age profile across both surveys 5
Figure 3: Overview of the payment methods measured in both surveys 9
Figure 4: Reasons for not using cash 10
Figure 5: Planned versus unplanned payments using a credit card 13
Figure 6: Beneficiaries of payments made using a credit card 13
Figure 7: Planned versus unplanned payments using sending money payment method 16

Tables
Table 1: Profile of participants across both the SCPC and DCPC surveys 4
Table 2: Average income profiles across the surveys 6
Table 3: Payment volume and value profiles by province (DCPC) 8
Table 4: Average payment value by weekdays and monthly cycles (DCPC) 8
Table 5: Summary table of cash payments 9
Table 6: Summary table of debit card payments 11
Table 7: Summary table of credit card payments 12
Table 8: Summary table of internet banking payments 14
Table 9: Summary table of banking app payments 15
Table 10: Summary table of sending money 16
Table 11: Summary table of three payment methods 17
Table 12: Average amount owed by regional classifications 21
1. INTRODUCTION
The payment system landscape in South Africa is experiencing significant changes. The advent of
mobile payments, the discontinuation of cheques, the entry of non-bank payment service providers and
the emergence of new forms of retail payments that do not directly draw on bank accounts, such as
e-wallets, are some of the recent changes that have been observed.

To monitor these developments effectively, it is important for regulators, policymakers and the public to
have access to comprehensive data on the use of payment instruments in the country. In line with the
South African Reserve Bank’s (SARB) National Payment System Framework and Strategy: Vision 2025
(Vision 2025) and to remain informed about developments in the national payment system (NPS), the
SARB commissioned in 2023 the Payments Study (hereinafter referred to as the study).

The study made use of two surveys – the Survey

of Consumer Payment Choice (SCPC) and Diary of
Consumer Payment Choice (DCPC). The SCPC –
deemed a recall approach – is based on consumer
choice and focuses on preferences, awareness, usage,
reasons for adoption and barriers to entry. The DCPC
measured actual payments over a set period of days
for three months. Both the SCPC and DCPC surveys
are based on similar instruments from other countries
and regions, most notably the Federal Reserve Bank
of Atlanta,1 complemented with additional questions
and context relevant to the South African market. The
surveys’ representative samples set out to align to the
country’s demographic profile of people aged 18 years
and older, which equates to a population size of 40.5
million people.2

The study reveals useful insights on how different people

make payments using different payment instruments
across the country and for what purpose the various
payments are made. The SARB plans to administer
these surveys periodically as it aims to continue sharing
consumer insights that will expand its repository of data
relating to the NPS.

1 See Survey and Diary of Consumer Payment Choice, Federal Reserve Bank of Atlanta. https://www.atlantafed.org/banking-and-payments/consumer-
payments/survey-and-diary-of-consumer-payment-choice
2 See Statistics South Africa, ‘Mid-year population estimates 2022’, Statistical Release P0302, 28 July 2022. https://www.statssa.gov.za/publications/P0302/
P03022022.pdf

South African Reserve Bank – Payments Study: Executive summary 1

2. SURVEY METHODOLOGIES
The SCPC was based on a nationally representative into sections with built-in routing instructions to
sample of at least 3 000 participants, aged 18 years ease the interviewing process, was administered
and older and living in metropolitan regions, cities, during the interviewing process. The survey was
large and small towns as well as rural and deep rural conducted between April and May 2023. A sample of
areas of the country. The respondent selection was 3 036 was set and 3 068 interviews formed part of the
based on random selection principles, while the Kish final analysis.
grid3 was used to select the secondary sampling unit
(household) and primary sampling unit (respondent). The DCPC is complementary to the SCPC, but
The sample frame was based on Statistics South distinct in that it is designed as a diary survey instru-
Africa’s (Stats SA) 2022 mid-year population ment to record actual payments over a specified time.
estimates.4 Panellists were recruited nationally to participate in
the three-month diary survey and record individual
The SCPC followed a probability design with a multi- payments over several three-day periods. The same
stratification sampling technique.5 The sample was disproportional sample design principles applied. A
designed to disproportionally represent dominant decentralised management system where separate
population cohorts such as the densely populated teams managed individual panellists was developed
Gauteng and less populated provinces such as the specifically for this survey. The diary database was
Northern Cape. As the sample design is based on weighted, applying the RIM weighting principles as
random selection principles, the marginal differences in the SCPC. The DCPC was conducted between
across demographic profiles were proportionally June and December 2023. A sample of 4 624 was
corrected with the application of the random iterative achieved, yielding 210 207 payments with a collective
method (RIM) weighting to actual population numbers. value of R111.2 million.

Interviews were conducted face to face in the homes All samples have a margin of error. The larger the
of respondents. A 45-minute questionnaire, divided sample, the smaller the margin of error, also referred

3 For a definition of Kish grid, see https://www.encyclopedia.com/social-sciences/dictionaries-thesauruses-pictures-and-press-releases/kish-grid

4 See Statistics South Africa, ‘Mid-year population estimates 2022’, Statistical Release P0302, 28 July 2022. https://www.statssa.gov.za/publications/P0302/
P03022022.pdf
5 See Statistics South Africa, ‘Community Survey 2007’. https://www.statssa.gov.za/?page_id=3917#:~:text=An%20enumerations%20area%20(EA)%20is,
enumeration%20areas%20will%20be%20interviewed

2 South African Reserve Bank – Payments Study: Executive summary

to as precision or standard error. The margin of error
of a 3 000 sample is 0.89% at a 95% confidence
level. The statistical interpretation means that one can
be 95% confident that if a score in this report is, for
The surveys’ representative
instance, 80%, the score for the population (weighted samples align to SA’s
and generalised) will be between 79% and 81%.
demographic profile of people
All the figures in this report are based on weighted
scores. Scores are rounded at one decimal and aged 18 years and older,
where there are no decimals, scores are shown as
equating to a population size of
a rounded number or percentage. The base size for
both surveys is 40.5 million people. 40.5 million people.

South African Reserve Bank – Payments Study: Executive summary 3

3. A NOTE ON THE INTERPRETATION OF
THE RESULTS IN THIS REPORT
The South African population aged 18 years and older is 40.5 million. Below is an overview across both the
SCPC and DCPC surveys at province level to illustrate the performance indicators:

Table 1: Profile of participants across both the SCPC and DCPC surveys

SCPC survey DCPC survey

Province Percentage Population Percentage Population

Limpopo 7.9% 3 185 758 7.9% 3 192 681

Mpumalanga 7.5% 3 044 009 7.1% 2 871 989

Gauteng 30.0% 12 171 331 30.3% 12 277 901

North West 6.1% 2 458 008 6.6% 2 663 003

Free State 4.8% 1 930 002 4.8% 1 963 286

KwaZulu-Natal 18.3% 7 412 741 18.1% 7 320 614

Northern Cape 2.0% 804 149 2.1% 870 659

Eastern Cape 10.1% 4 094 761 10.2% 4 147 229

Western Cape 13.4% 5 415 950 12.9% 5 223 856

4 South African Reserve Bank – Payments Study: Executive summary

In terms of race, both surveys had similar proportions.

Figure 1: Race profile across both surveys

79%
Black
79%

9%
Coloured
9%

3%
Indian
3%

10%
White
10%

0 20 40 60 80 100
SCPC DCPC

The age profile across both surveys was well-aligned

and illustrates the comprehensive coverage of the
nationally representative SCPC study and DCPC
panel.

Figure 2: Age profile across both surveys

17%
18–24
17%

28%
25–34
26%

22%
35–44
22%

17%
45–54
19%

16%
55+
17%

0 5 10 15 20 25 30
SCPC DCPC

In terms of gender groups, both surveys had similar

scores of males (48%) and females (52%).

South African Reserve Bank – Payments Study: Executive summary 5

4. INCOME PROFILES
In both surveys, household and personal income were recorded.

Table 2: Average income profiles across the surveys

SCPC DCPC

Household monthly gross Personal monthly Household monthly gross Personal monthly
income gross income income gross income

R13 897 R6 203 R20 613 R14 237

The DCPC was clustered into four categories to highlight the The low-income cluster represents only 33% of
nuances in payment methods against income categories. payments6 and 16% of the total payment value7
These were based on monthly personal gross income as it across all transactions measured.
was the individual who transacted.
The average payment value for the low-middle-
The classifications were as follows: income group increases from R299 to R413.
• Low-income group (R0–R4 999) 36.1% There is somewhat greater variance between
provinces. This group represents 24% of
• Low-middle-income group (R5 000–R11 999) 21.6% transaction volume and 19% of value. This group
• High-middle-income group (R12 000–R24 999) 28.2% is well represented in the Western Cape.
• High-income group (R25 000+) 14.1% The next level, the high-middle income group
In the DCPC, the overall average transaction value was represents slightly more (29%) in terms of
R529.21. The low-income group recorded an average payment volume and just over a third (34%) of
payment value of R299, which is consistent across provinces. the total payment value. The variance across

6 Payments refer to the number of transactions.

7 Payment value refers to the value of transactions.

6 South African Reserve Bank – Payments Study: Executive summary

provinces on the average value per payment is more
pronounced. The average payment value for this
group is R626 per transaction.

Lastly, the high-income group represents 28% of the

total payment value. The average transaction value for
this group is R1 072. Gauteng (47%) is particularly
well represented in this group. The average value per
payment varies substantially across the provinces.

A correlation is observed between income and

employment status. However, the low-income group
and unemployed (13%) are misleading as many grant
recipients fall into the low-income category but are
not economically active.

In the SCPC, 21% of South Africans could cover all

household expenses over the past year. Thirty-two
percent spent less to try to make ends meet, 28%
borrowed food or money from family or friends and
27% withdrew money from savings.

The income analysis further highlights that borrowing

from family or friends is the most frequently used
form of accessing money. A very small percentage of
money is borrowed from banks (6%) when people are
under financial strain.

South African Reserve Bank – Payments Study: Executive summary 7

5. INSIGHTS ON PAYMENT METHODS
South Africans use cash most often as a payment method irrespective of what they buy, as this is a commonly
accepted payment method. At a high level and to set the foundation for the three main metrics used in the analysis,
three indicators are shown at provincial level. The average value per payment across all payment methods is
R529.21.

Table 3: Payment volume and value profiles by province (DCPC)

Average value
Provincial profile Payment volume Payment value per payment
Gauteng 30% 24% R724.96
KwaZulu-Natal 18% 19% R493.50
Western Cape 13% 15% R511.02
Eastern Cape 10% 13% R633.01
Limpopo 8% 9% R365.67
Free State 5% 8% R492.75
North West 7% 6% R439.95
Mpumalanga 7% 3% R464.62
Northern Cape 2% 2% R492.80
Total 40 531 218 R111 242 680 R529.21

Monthly payments, as expected and in line with international trends, show a decrease in payments during the
middle of the month and most payments being made at the end of the month. The cut-off dates between the
beginning, middle and end of the month were based on frequency changes and to provide at least 10 days for
each section of the month.

In line with the volume of payments per month, the average value follows a similar pattern. Beginning and mid-
month payments are generally of a lower value than month-end payments.

Table 4: Payment value profiles by weekdays (DCPC)

Sunday Monday Tuesday Wednesday Thursday Friday Saturday Overall

Beginning of the
month (5th to 14th) R416 R392 R417 R462 R397 R548 R534 R453
Middle of the month
(15th to 24th) R477 R377 R409 R371 R338 R545 R526 R445
End of the month
(25th to 4th) R609 R568 R657 R650 R586 R652 R804 R651
Overall R506 R459 R497 R521 R452 R589 R648 R529

Measuring payments across the different payment methods provides insight into the payment method usage, but
to deepen the insight of payment methods it is also necessary to include what the payments were for.

In the DCPC survey, 38 payment classifications were measured and netted into 15 overall categories. The average
value of payments across the categories varies substantially. Cellphone and data payments are the lowest in
average value whereas business payments, most likely for sole proprietors, are the highest.

8 South African Reserve Bank – Payments Study: Executive summary

Figure 3: Overview of the payment methods measured in both surveys
Average value
R448.11 Groceries 31%
26%
R372.03 Transport, vehicle and fuel 18%
12%
R120.63 Cellphone or data payments 10%
2%
R197.58 Restaurant 8%
3%
R563.48 Support payments and charity 6%
6%
R924.60 Home maintenance 5%
9%
R730.92 Clothing 5%
7%
R521.17 Social and holidays 4%
4%
R1 374.67 Rates, taxes, levies and rent 3%
9%
R414.86 Personal 3%
2%
R563.79 Health 3%
3%
R1 439.77 Investment and insurance 1%
4%
R1 169.83 Debt payments 1%
3%
R4 530.10 Business payments 1%
9%
R1 245.44 Education 1%
1%
0 5 10 15 20 25 30 35
Payment volume Payment value

A consistent pattern throughout the analysis of the DCPC, data indicators show that planned expenses are by far
the majority of payments. However, 19% of payments (almost one in five) are unexpected. Considering that the
average number of payments per month is 15, it means that three of those payments per month are unexpected.
There is very little difference between the average value of transactions, whether planned (R527.34) or unplanned
(R531.08).

In terms of the beneficiaries of payments made, payments spent on the payer (him- or herself) are generally
lower in average value (R354.23). This is expected as it is for a single person and equates to about one in three
transactions (32%). Payments with the highest average value (R787.57) are those made to others but are the least
frequent (16%). Payments for the payer and others (assumed the family or household) are the most frequent type
of payment and more so than the payments for individuals or the payer him- or herself (R669.08).

A short overview of each of the payment methods is included in this report. The summary tables highlight the key
indicators for each payment method.

5.1 Cash payments

Table 5: Summary table of cash payments

Key indicators SCPC DCPC

Consumer population 35 055 760 39 732 077

Percentage of population (consumers) 85% 98%
Estimated percentage of payments (volume) 56%
Estimated percentage of payments (value) 21%
Total payment value over three months R22 825 124
Average payment per transaction R208.44

South African Reserve Bank – Payments Study: Executive summary 9

 The first thing to note is the lower average value The DCPC further highlights that there are more
(R208.44 overall) of cash payments compared to people in the higher-income groups that do not use
the overall value of payments across all payment cash often. The pattern across income groups is the
methods, which is R529.21 (refer to Table 3). most stable indicator of the risks and dangers of
Although almost everyone uses cash as a payment using cash. These risks and dangers are perceptions
method, it represents only 21% of the total payment as the study did not ask about specific incidents or
value, again reiterating the small average value per events that may have led to the practice of using
payment. Although Tuesdays are lower in payment cash less frequently.
volume, the average value per payment is not the
lowest across the week. Fridays and Saturdays,
Figure 4: Reasons for not using cash
on the other hand, are higher in volume, value and
average payment value compared to the rest of the It is a risk or
dangerous to have 55%
week for cash payments. cash on me

Everything I need to
Moving to monthly cycles, as expected at the end pay for can be 31%
done without cash
of the month (25th to 4th of every month), payment
volumes and values increase as monthly bills and ATMs are no
longer safe places 27%
other financial commitments are mostly actioned. to get cash
There is a slight overflow to the beginning of the
It is too expensive
month (5th to 14th of every month) coupled with to withdraw or 27%
access cash
a normal increase in payments following receipt of
a salary or a grant. The middle of the month (15th
Accessing cash 14%
to 24th) is the lowest in terms of volume, value and is inconvenient

average payment value, particularly related to cash

0 10 20 30 40 50 60
payments.

Economies are stimulated by the workforce of the

country. This is true not just for cash payments but
for all other payment methods. A total of 57% of
payments (in volume) and 67% (in value) are from
from employed consumers. The self-employed
group often manage business payments as part
of their financial responsibilities and show a slightly
different pattern compared to the employed cohort
across all payment methods.

At 55%, automated teller machines (ATMs) remain

the dominant point to access cash. In second
place (at 28%) and a more recent addition to
accessing cash is the cash-back at point of sale
(POS), particularly from major retailers. The ability to
access cash at the cash-back at POS has improved
accessibility and made life easier for those who
do not have ATMs in their area. In support of the
ATM location dynamic, lower-income individuals
access cash more frequently at the cash-back at
POS and the male/female percentages are almost
reversed compared to ATM access, the assumption
being that females withdraw cash when doing
household shopping.

10 South African Reserve Bank – Payments Study: Executive summary

5.2 Debit card payments
Table 6: Summary table of debit card payments

Key indicators SCPC DCPC

Consumer population 30 500 682 36 999 728

Percentage of population (consumers) 75% 91%

Estimated percentage of payments (volume) 34%
Estimated percentage of payments (value) 55%
Total payment value over three months R60 584 212
Average payment per transaction R768.20

The second-largest payment method in South Africa cards. There are over 18 million SASSA cards in
follows a fairly similar pattern to cash payments, South Africa,8 with the 6.8 million recorded in this
although the average amounts are much higher (R768). survey being used as a payment method. The debit
The overall pattern across weekdays remains the card (including what consumers refer to as either a
same for debit cards compared to cash. The average savings, cheque or debit card) remains dominant
value fluctuates surprisingly little across weekdays (93%) compared to SASSA (6%) and retail debit cards
and slightly higher on Fridays and Saturdays, in line (0.2%). There were changes to the naming of debit
with general expense trends. On a monthly-cycle cards, particularly the cheque account card but these
basis, recurring payments are included, pushing the perceptions remain in the minds of consumers.
month-end payment volume and value share higher.
At an overall level, interest earned on debit cards
The most common debit card payment is at retail is 1.26%. The results in this survey illustrate, as
stores for groceries. Although used often it contributes expected, that only 25% of those who opened a debit
less to the overall value share of debit card payments. card account were influenced by the interest rate. It
In other words, grocery shopping is frequent but at is also noted that many are not aware of the interest
a lower average value per transaction. The average rate (33%).
grocery payment value using cash is R211.88,
while debit card payments are more than triple that Capitec Bank Limited (Capitec), by a substantial
at R717.54. It may be that larger grocery payments margin, has the most debit card holders in the country
are too impractical to pay in cash as this will require (53%). The pattern remains largely the same when all
consumers to carry large amounts of cash, which accounts are compared to the main account. The
may be considered a risk. five largest banks,9 as expected, feature at the top of
the list but with a much lower share of volume. After
Most (81%) payments are planned and the difference Capitec, the remaining four banks have a volume
between planned and unplanned average values are share of between 8% and 12%. It should be noted
minimal at R774 and R744 respectively. Much like that these numbers only reflect if there is an account
cash, the debit card as a payment method offers with the bank or not and not the value of the accounts.
little support for unplanned transactions in the form Furthermore, only 6% of card holders have joint debit
of credit. card accounts and 30% of card holders claim that the
debit cards offer them benefits or rewards for using
The employed contribute the most to payment volume the card.
and value. At the other end, it is likely that a share of
debit card payments is from the unemployed using In terms of unstructured supplementary service data
mainly South African Social Security Agency (SASSA) (USSD), 22% of debit card consumers access their

8 See South African Social Security Agency, Annual Performance Plan 2022–2023. https://static.pmg.org.za/SASSA_2022-23_Annual_Performance_Plan.pdf
9 Standard Bank of South Africa Limited, FirstRand Bank Limited, owner of First National Bank (FNB), Absa Bank Limited, Nedbank Limited and Capitec Bank
Limited

South African Reserve Bank – Payments Study: Executive summary 11

 account using the USSD facility. This may include On average, people experience not having sufficient
purchasing airtime, electricity and other functions as funds in their accounts almost twice a year (1.96
may be available on the USSD platform. Both short times). Collectively this translates to 45% of debit card
message service (SMS) and USSD options are used holders who experience having insufficient funds at
more frequently than internet banking. Lastly, 12% least once a year – a large percentage. The Western
accessed their account by phoning the bank. These Cape seems to have a higher frequency of debit card
figures are based on multiple access options so the holders experiencing financial difficulties.
total will be more than 100%.
Of those that do not use a debit card (just over 10
Only 15% of debit card holders have an overdraft facility million), almost one in three (29%) indicated that they
with a clear skew towards higher-income earners with do not have enough money to qualify for a debit
higher education qualifications. On average, people card. This may just be a perception, or they might
who have an overdraft facility access it 2.93 times have applied and did not qualify for some reason.
per year. Many never do (42% of those that have the Interestingly, 15% claim they do not know enough
facility). Generally, the overdraft on a debit card is a about this payment method. Several other reasons
temporary facility, and as soon as money is deposited are given such as no bank facilities in the area (5%),
into the account, the overdraft is settled. It is different most likely referring to areas outside metro regions,
to a credit facility with monthly payment terms over a far away from large towns or business centres.
specified time frame.

5.3 Credit card payments

Table 7: Summary table of credit card payments

Key indicators SCPC DCPC

Consumer population 3 075 878 7 518 623
Percentage of population (consumers) 8% 19%
Estimated percentage of payments (volume) 1.9%
Estimated percentage of payments (value) 4.3%
Total payment value over three-months R4 764 236
Average payment per transaction R1 141.41

12 South African Reserve Bank – Payments Study: Executive summary

In the SCPC, the percentage of people with a credit expenses but also to help others when in need,
card was measured at 8% of South Africans. In almost like a loan facility among friends and family.
the DCPC survey the percentage is much higher at The ‘mainly for myself’ category changed from 32%
19%. There are two reasons for this, namely that (i) (overall) to 29% for credit cards only, as seen below.
the DCPC sample was skewed towards the more
affluent to obtain higher volumes on less-often used
Figure 6: Beneficiaries of payments made
payment methods; and (ii) the credit card may be using a credit card*
used by others, not just the person in whose name it
is registered, the latter being the more likely reason for 98%
the higher usage as the results show.

29%
The average values and for what payments were
made illustrate the value of having credit to pay for
things that are difficult to cover in a normal month. 51%
Credit card ownership, as seen in the SCPC, is largely
ring-fenced to the more affluent. This is confirmed
with particular reference to the high-income group,
19%
most being in Gauteng.

Interesting to note is that the average value per Mainly for Mostly for Myself and
payment is much more stable across the demographic myself others others

indicators, with the average value being R1 141.41,

a high average compared to debit cards and cash. * Please note that the percentages do not add up to 100% due to
rounding off.
The fact that credit cards have a credit facility aligns
well with the need to cover unexpected payments. It
may not contribute that much to value but definitely The main motivation to apply for a credit card is to
in frequency. Considering that the overall pattern have access to a credit facility at any time (37%). The
was 81% planned versus 19% unplanned, the below rewards, cash-back and loyalty points motivators are
graph illustrates the substantial change in pattern for in second place (25%), with 11% citing the importance
credit card payments. of a credit card for online and retail payments.

Figure 5: Planned versus unplanned Close to 8 out of 10 (77%) credit card holders have the
payments using a credit card card in their own name, meaning that the balance are
joint account holders. It is therefore not surprising that
98%
the transaction data recorded in the DCPC showed a
much higher population base and higher transaction
38% value.

The credit facility is accessed 5.63 times per year.

Since the main reason cited for getting a credit card
was to have access to credit at any time, the higher
62%
frequency of access to credit is sound. Only 12% of
credit card holders did not access the facility in the
past year, while 31% increased their credit limit in that
period. Consumers in the Western Cape (40%) seem
Planned Unplanned
to be under greater financial pressure and therefore
the higher increased credit limit in the province makes
The higher average payment value for ‘mostly for sense. It was also the province with the highest
others’ is indicative of the cross-functional use of a percentage of those with insufficient funds on their
credit card. Credit cards are not just used for own debit card accounts.

South African Reserve Bank – Payments Study: Executive summary 13

 The higher-income earners (37%) increased their credit average, for debit card consumers. The 58% of credit
limit substantially more than the low-income earners card holders who have experienced insufficient funds
(11%). Farmers or those living on farms (41%) also are also higher than that of debit card holders. As with
increased their credit limit more than other regions. debit cards, not having enough money to qualify for
The report’s debt section provides further evidence a credit card (24%) is the greatest barrier, followed
of the higher percentage for farmers increasing their by fees and service charges (17%). This may also
credit limit. include interest rates charged which are usually higher
than for other forms of credit. Fifteen percent stated
Despite the credit facility of a credit card, on average, that they did not meet the minimum criteria to get a
credit card holders have insufficient funds 3.4 times credit card while 7% said no bank will give them a
a year compared to the 1.96 times per year, on credit card.

5.4 Internet banking and banking app payments

Table 8: Summary table of internet banking payments

Key indicators SCPC DCPC

Consumer population 11 114 021 10 208 088

Percentage of population (consumers) 28% 25%

Average times per month it is accessed 5.76 times
Estimated percentage of payments (volume) 1.6%
Estimated percentage of payments (value) 6.7%
Total payment value over three months R7 444 034
Average payment per transaction R2 132.96

14 South African Reserve Bank – Payments Study: Executive summary

Table 9: Summary table of banking app payments

Key indicators SCPC DCPC

Consumer population 20 379 949 22 097 955

Percentage of population (consumers) 50% 55%

Average times per month it is accessed 6.12 times
Estimated percentage of payments (volume) 5%
Estimated percentage of payments (value) 12%
Total payment value over three months R12 867 444
Average payment per transaction R1 136.80

Internet banking platforms have been available for to the 16% who created a profile before that. The
longer than banking apps. In the SCPC, 27% of global COVID-19 pandemic possibly influenced the
consumers in South Africa reported that they use adoption of both internet banking and banking apps
their internet banking platform as a payment method, as payment platforms. Banking apps are accessed
while the DCPC recorded 25%. This compared to slightly more frequently (6.12 times per month) than
the 50.3% of the population making use of banking internet banking profiles. Accessing the internet
apps in the SCPC and 55% in the DCPC. Although banking profile or banking app may not always include
more consumers use banking apps, these account making a payment. It could be for checking balances,
for only 5% of overall payment volume and 11.5% or transferring funds from one account to another or
R12.9 million of payment value. It should be noted looking for additional financial products or services.
that only certain payments are possible using internet The real value of the banking app becomes evident
banking or a banking app as payment methods. Most in what the payment was for (i.e. cellphone or data
POS payments are not possible with these payment purchases and family support payments). The
methods. former has the highest volume but lowest average
payment value (R136.41). The use of the banking
Two out of 10 (21%) consumers created their internet app for cellphone or data payments seems like an
banking profile between 2019 and 2020 and almost underutilisation of a sophisticated payment method.
40% have been using internet banking for the past
four years. In contrast, although banking apps are The order of the banks with which consumers have
a more recent addition to managing money, 61% a banking app remains the same as the internet
of banking app consumers have been using it for banking profile usage, with 59% of consumers having
the past four years. The main shift towards banking a banking app profile with Capitec, surpassing its
apps started between 2016 and 2018 when 23% of internet banking usage of 54%.
consumers created a banking app profile, compared

South African Reserve Bank – Payments Study: Executive summary 15

 5.5 Sending money
Table 10: Summary table of sending money

Key indicators SCPC DCPC

Consumer population 24 259 280 6 427 659

Percentage of population (consumers) 59.9% 16%

Average times per month it is accessed 3.47 times
Estimated percentage of payments (volume) 0.5%
Estimated percentage of payments (value) 1.0%
Total payment value over three months R1 129 004
Average payment per transaction R1 017.12

In the SCPC, about 60% of the population reported an exclusive pattern but clearly noted in the frequency
that they send money to others living in and outside and average value of the payments. Sending money
South Africa. It is possible that some consumers payments are by nature to support others; it is
may have interpreted the sending of money as a therefore expected that a higher frequency will be
transaction, meaning they paid someone using unplanned or unexpected payments. Apart from the
another payment method and included this under frequency difference, the unplanned payment average
‘sending money’. This is a learning for subsequent value (R1 323) is substantially higher than planned
surveys to refine the questions around this payment payments (R849).
method and what it includes and excludes. The
DCPC survey recorded far less usage of this payment
method and is more realistic, especially based on Figure 7: Planned versus unplanned payments
using the sending money payment method
volume and value contributions.
98%
Remittances, the most common association with
sending money, is but one part of the ‘sending
money’ payment method, as not all sending money
transactions are remittances. The remittance market 44%
is also mostly associated with foreigners living and
working in South Africa who send money to their 56%

families back home. The remittance market is further

complicated by for instance Hawalas10 and other
informal service providers. This survey focused on the
formal and organised market.

Planned Unplanned
Most agree that the services are convenient, easy to
set up, widely accepted and secure. Hidden costs or
costs associated with using the platforms available The overall satisfaction rating using the sending
have been highlighted as barriers. Usage in Gauteng money payment method is high at 90%, with ease of
dominates the provincial profile. Minimal differences use (24%), convenience (15%) and quick (14%) as the
are seen between male and female consumers. three dominant reasons why consumers choose this
payment method.
As expected, those who earn money through
employment send money more frequently. This is not

10 See https://www.investopedia.com/terms/h/hawala.asp for an explanation about Hawala.

16 South African Reserve Bank – Payments Study: Executive summary

5.6 Other payment methods
In this section, three payment methods are combined. These are digital payments, loyalty cards and cardless
payment methods. The headline summary for each is illustrated separately but the consumer profiles are combined
as the number of people using these payment methods is small.

Table 11: Summary table of three payment methods

Digital payment Loyalty card payment Cardless payment

DCPC key indicators method methods methods

Consumer population 2 329 391 1 253 792 3 210 687

Percentage of population (consumers) 0.2% 3% 8%

Average times per month it is accessed 4.80 times 5.29 times 4.18 times
Estimated percentage of payments (volume) 0.2% 0.1% 0.6%
Estimated percentage of payments (value) 0.2% 0.3% 0.6%
Total payment value over three months R660 990 R287 315 R680 321
Average payment per transaction R1 105.34 R1 288.41 R736.28

For digital payment methods, the DCPC focused From a volume perspective, the youth, more educated
exclusively on methods such as Nedbank and more affluent groups tend to dominate usage
MobiMoney, EasyPay, QR code apps, SnapScan, across the three payment methods. Although this is
PayFast, Masterpass, Apple Pay, Samsung Pay not an exclusive tendency, the pattern is pronounced.
and others. Loyalty card payments, such as FNB’s With the overall value of R933.31, the average across
eBucks, represent only 0.1% of the 210 207 recorded most demographic clusters remains stable. Interesting
payment transactions. The three payment methods to note is the use of these payment methods for as
combined have a volume share of 0.9% and value many unplanned as planned payments.
share of 1.1%. These are complex payment methods
with a very small consumer base.

South African Reserve Bank – Payments Study: Executive summary 17

 5.7 Crypto assets have investments in other crypto assets. The crypto
hype subsided somewhat in recent years following
As the final payment method measured, crypto- tremendous growth in the main crypto asset, namely
asset investors are 2.30% of the population. Only 7% BTC.
(2 918 501) of the South African population know
about crypto assets. Most consider the purchase of a crypto asset as an
investment. However, a range of reasons are given
Bitcoin (BTC) and Bitcoin Cash (BCH) are observed including those who are anti-establishment and do
to be the top-two crypto assets, with BTC by far not trust the banks, favour the fact that there are
being the best known. Of the 2% who do invest in no laws governing crypto assets or do not trust the
crypto assets, 57% invested in BTC. This was a government. Few (21% of 2% of the population)
multiple response set so BTC investors may also mentioned that they use it to buy goods and services.

18 South African Reserve Bank – Payments Study: Executive summary

6. INVESTMENTS
At the opposite end of the payment profiles discussed the savings amount is linked to interest rates (51%)
up to this point, it is also important to analyse behaviour earned. New entrants to the investment market such
in relation to investments. The interesting dynamic in as fintech11 (5%) and meditech12 (4%) investment
the South African market is the large number of cash vehicles received relatively low awareness scores.
investments in informal saving mechanisms such as
stokvels and burial societies. The stokvel investment Based on actual investments, the same three
vehicle was considered a collective and no distinction investment vehicles dominate the market, with a
was made between grocery stokvels, investment collective share of 73%, split between burial societies
stokvels, holiday stokvels, birthday stokvels and the (35%), stokvels (20%) and savings options with a
like. Further, burial societies may include funeral cover bank (18%).
policies from the formal market. In future studies, it will
be important to record these separately. Four payment methods are used most often to invest
money. These are cash (54%), debit cards (54%),
Less than half (46%) of the population invested money banking app (21%) and internet banking (11%).
in the past year, with 14% making a separate or ad
hoc contribution to their investment options. Many Apart from the top-three saving mechanisms
of these are burial society or stokvel payments that mentioned, a host of other investment options (14 in
are usually paid in cash. In line with expectations, the total) were measured. There is a given prerequisite that
older South Africans invested more than the youth. these investment options usually require the services
of a broker or investment adviser who understands
The top-three investment vehicles in South Africa, how it works and what the right balance between
based on awareness, are burial societies (65%), investment options should be to ensure diversification
stokvels (54%) and savings options at the banks, in volatile market conditions.
such as a 32-day notice saving option or where

11 A clipped compound of ‘financial technology’ that refers to technology competing with traditional financial methods.
12 A clipped compound of ‘medical technology’ that refers to medical technology solutions with investment options.

South African Reserve Bank – Payments Study: Executive summary 19

 7. DIGITAL TRANSFORMATION
Only a third (33%) of the population indicated they have no difficulty adopting electronic or digital financial
methods. The balance share a range of reasons including lack of knowledge (19%), lack of funds (17%),
lack of control (9%), or other external factors.

These reasons, together with other statements in the SCPC survey instrument, were used to classify the
market into three distinct categories:

• Digital adopters – those that have adopted digital platforms or

technology and feel confident using these platforms or methods. (33%)
• Digital rejectors – those that have no interest in or outright reject
technology or digital platforms to transact or manage finances. (36%)
• The excluded – those that have no interaction with technology
platforms or digital payment methods due to structural or financial barriers. (31%)
The latter group is excluded from digital payment options due to barriers to entry such as no place to use
it, merchants do not accept these payment methods, lack of funds, lack of stable data or internet access,
costs of using the services are too high, or do not have the right equipment (smartphone, laptop, tablet).

Digital rejectors included those with sentiments such as lack of knowledge (or not willing to find out),
security concerns, feeling less in control, not interested in technology, or scared of these methods. The
level of education and income are the two most important aspects that influence the three clusters.

20 South African Reserve Bank – Payments Study: Executive summary

8. DEBT AND DEBT MANAGEMENT
Most people borrow money from friends or family
(28%). This is followed by other informal borrowing
agents such as loan sharks or mashonisa agencies
(10%), stokvel groups (10%), colleagues (9%) or the
retail store (borrowing or buying on credit) (9%).

Formal avenues such as banks (6%) are only

considered after these options are utilised. Therefore,
a large percentage of borrowed money is not recorded
in the formal sector. According to the SCPC, more
than half the population (52%) owe someone money;
about half of this group (28%) did not know or refused
to disclose the amount.

Thirty-eight percent considered that the current

amount owed is about the same as last year, while
40% stated it is less or much less. This is most
likely the aftermath of recovering strategies from the
COVID-19 pandemic.

On average, the amount owed per person is relatively

low at R5 435. White consumers owed the most at
R33 381. As mentioned in section 5.3, the farming
community has a higher average debt value than the
other area classifications.

Table 12: Average amount owed by regional

classifications

Area classification Average amount owed

Metro R4 774

Non-metro urban R5 021

Non-metro rural R1 258

Non-metro farms R15 136

Only 3% of the country are under debt management.

The average interest rate charged on borrowed money
is 9.1%. The interest rate for white consumers, those
who owe more to banks than other race groups, is
slightly higher at 11.1%.

South African Reserve Bank – Payments Study: Executive summary 21

 9. CONCLUSION
As the first study of its kind in South Africa, the payments landscape measured
through individuals’ payment data has an undercurrent of cash payments being
highly complemented with debit card payments. Banking apps are gaining traction
and likely to continue growing as a payment method. Other payment methods such
as digital payments (e.g. virtual cards) are offered by a range of service providers but
remain niche and exclusive. The correlation between affluence and level of education
against the different payment method applications is clear.

The interplay between cash payments and debit cards may be for practical reasons
(i.e. to not carry a large amount of cash). The debit card is likely to continue to gain
share over cash as a result of factors such as rising food prices, which lead to higher
payment values per purchase.

The adoption of other payment methods over cash can also benefit from targeted
consumer financial education or literacy efforts on payment method and products,
ensuring that consumers understand how the payment methods work, the benefits
they offer and the risks they pose.

The deployment of this study has enabled key insights into consumers’ use of
payments, how different people use payments across the country and for what
purpose the various payments are made.

The SARB will continue to share useful insights from these studies with which it aims
to expand its repository of data relating to the payment system and to enable financial
service providers to make the necessary interventions to drive adoption of digital
payment services.

22 South African Reserve Bank – Payments Study: Executive summary

10. SURVEY SPECIFICATIONS
The following survey specifications are relevant to comply with standard research reporting protocols when shared
publicly.

Study classification Description

Research conducted by MarkData (Pty) Limited

Confidentiality All respondent information is kept confidential in line with the

Promotion of Access to Information Act 2 of 2000 (POPIA) and
ESOMAR Code of Conduct practices

Study dates The surveys were administered between April and December 2023

Sample size SCPC n = 3 068; DCPC n = 4 624

Sample selection SCPC – multi-staged stratified random design based on Stats SA’s
2022 mid-year population estimates

DCPC – community-based panel recruitment off the SCPC national

representative sample framework

Margin of error SCPC – 0.89% at 95% confidence level

DCPC – 0.41% at 95% confidence level

Data collection methodology Telephonic and face-to-face interviews on computer-assisted

personal interview (CAPI) devices

Weighting of data Weighted, using RIM weight methodology. Weight efficiency was
87% and 82% respectively

Reporting Percentages are rounded

South African Reserve Bank – Payments Study: Executive summary 23

 ANNEXURE A: PAYMENT METHOD
DEFINITIONS
The following payment methods were measured in this study. A short definition for each is provided.

Payment method name Payment method description

Cash payments All transactions where cash was used as the payment method,
irrespective of the amount.

Debit card payments Any debit, cheque, current, transaction or saving account bank
card via swiping, tapping, or dipping with or without a pin code,
including SASSA accounts, debit orders and retail store cards (not
retail credit cards).

Credit card payments Any credit card facility operated by Visa, Mastercard, or others.
This includes retail credit cards (not retail store cards) via swiping or
tapping with or without a pin code.

Internet banking payments All internet banking transactions to pay for or send money,
including EFTs or immediate payments.

Banking app payments All banking app transactions to pay for or send money, including
EFTs or immediate payments.

Digital payment methods Any digital or smart payment methods such as scanning QR codes
(e.g. Zapper, SnapScan, Masterpass, Ozow, etc.)

Sending money Any transaction where money was sent to others in South Africa
or abroad with eWallet, MoneyGram, Mukuru, Masterpass, Crypto,
Shoprite Money Market and so on.

Loyalty card payments Any loyalty card that has the capability to pay for goods or services
such as eBucks, store cards and so on.

Cardless payments Any cardless payments (also known as virtual card), using a mobile
phone or smartwatch such as Samsung Pay and Apple Pay. It
includes all USSD payments, mobile money and so on.

24 South African Reserve Bank – Payments Study: Executive summary

ABBREVIATIONS
ATM automated teller machine

BCH Bitcoin Cash

BTC Bitcoin

CAPI computer-assisted personal interview

DCPC Diary of Consumer Payment Choice

EFT electronic funds transfer

A clipped compound of ‘financial technology’ that refers to technology competing with

fintech
traditional financial methods

FNB First National Bank

A clipped compound of ‘medical technology that refers to medical technology solutions

meditech
with investment options

NPS national payment system

NSFAS National Student Financial Aid Scheme

POPIA Promotion of Access to Information Act 2 of 2000

POS point of sale (with or without cash-back functionality)

RIM (weighting) random iterative method

SARB South African Reserve Bank

SASSA South African Social Security Agency

SCPC Survey of Consumer Payment Choice

SMS short message service

Stats SA Statistics South Africa

The study South African Reserve Bank – Payments Study

USSD unstructured supplementary service data

Vision 2025 National Payment System Framework and Strategy: Vision 2025

South African Reserve Bank – Payments Study: Executive summary 25