Johannesburg, South Africa – July, 2025 — A new financial technology report has revealed a significant transformation in South Africa’s payment landscape, showing that a growing number of citizens are abandoning traditional payment methods such as cash and cards in favour of digital and contactless solutions.
The report, compiled by FinTech Analytics Africa, highlighted that over 60% of retail transactions in South Africa during the first half of 2025 were conducted using mobile wallets, QR codes, and digital banking platforms — a sharp rise from 38% recorded in the same period in 2023.
According to the data, the COVID-19 pandemic accelerated the adoption of cashless payments, but the momentum has been sustained by increasing smartphone penetration, improved internet access, and growing trust in financial technology platforms.
“Digital payment is no longer just a convenience — it’s fast becoming the norm for millions of South Africans,” said Thabiso Molefe, lead analyst at FinTech Analytics Africa. “From informal markets to major retail chains, mobile and contactless payments are leading the way.”
The report also found that banking apps and fintech platforms like SnapScan, Zapper, and PayShap have gained widespread acceptance across different age groups and income brackets, especially among youth and urban dwellers.
Meanwhile, financial regulators are urging caution and reinforcing cybersecurity frameworks to ensure that consumers are protected against digital fraud as cashless adoption continues to rise.
Experts say South Africa’s rapid transition to digital payments could serve as a model for other African nations aiming to enhance financial inclusion and reduce the risks associated with handling physical cash.
