Converge 2025: The State of eCommerce Payments in SA

South Africa’s eCommerce market is growing faster than ever. Bolstered by widespread mobile adoption, improved internet access, and changing consumer behavior, the country’s digital economy is transforming—and at the center of this transformation is payments. 

 

 

Today’s South African consumers demand speed, security, and choice when shopping online. Meanwhile, merchants—both local and international—need payment solutions that can keep pace with customer expectations while navigating regulatory and infrastructure challenges unique to the region. 

 

 

As PayU gears up to sponsor the Converge Africa 2025 event, it’s the perfect time to reflect on the evolution of South Africa’s eCommerce payments landscape and what businesses must know to thrive in this vibrant market. 

 

South Africa is the continent’s most developed eCommerce market, with the sector growing by an estimated 14–16% annually. According to industry reports, the country’s eCommerce revenue is expected to exceed $7 billion by 2025, driven by: 

 

• Mobile commerce: Over 80% of internet traffic now comes from smartphones. 

 

• Financial inclusion: More South Africans are gaining access to digital financial services, including mobile wallets and online banking. 

 

• Changing consumer habits: The COVID-19 pandemic permanently shifted shopping habits online, accelerating growth across multiple sectors—from fashion to groceries. 

 

However, growth comes with challenges, particularly around payment preferences, security, and accessibility. 

 

 

 

Offering the right payment methods is key to success in South Africa’s eCommerce market. 

South African consumers prefer a wide variety of payment options depending on their demographics, region, and even the value of the purchase. The most popular payment methods include: 

 

 

• Credit and debit cards: Visa and Mastercard dominate, but uptake is lower than in more mature markets due to lower card penetration rates among some population segments. 

 

• Instant EFT (Electronic Funds Transfer): Solutions like PayU’s Instant Account Transfer allow consumers to pay directly from their bank account without needing a card. 

 

• Mobile wallets: Digital wallets are gaining popularity, especially among younger consumers. 

 

• Buy Now, Pay Later (BNPL): This flexible payment model is rapidly growing in South Africa, helping consumers manage cash flow while boosting conversion rates for merchants. 

 

• Cash-based solutions: Options like cash-on-delivery and cash vouchers remain important for consumers who are underbanked or wary of online transactions. 

 

Merchants who offer a broader range of payment options stand a better chance of reaching a larger customer base, improving checkout conversion rates, and building customer loyalty. That’s why PayU South Africa integrates a full suite of payment methods, including Instant EFT, card payments, BNPL solutions, and alternative payment methods—all tailored to local needs. 

While the opportunities are significant, several challenges must be addressed to unlock the full potential of digital payments: 

 

1. Financial Exclusion

 

Despite improvements, millions of South Africans remain unbanked or underbanked. Payment providers must offer accessible solutions, such as mobile payments and cash-based alternatives, to drive inclusion. 

 

2. Fraud and Security

 

Security remains a top concern for South African shoppers. Fraud prevention technologies like 3D Secure 2.0, tokenization, and real-time fraud monitoring are essential. 

 

PayU is leading in this area, offering robust fraud detection tools and PCI DSS-compliant security to protect both merchants and consumers. 

 

3. Mobile Optimization

 

Given the dominance of mobile devices, payment experiences must be fully mobile-optimized. Slow, clunky checkouts are a sure way to lose customers. PayU’s payment gateway ensures seamless mobile-first experiences to maximize conversions. 

 

4. Cross-border Complexity

 

Global merchants selling into South Africa face hurdles such as currency conversion, regulatory compliance, and understanding local consumer behavior. A local partner like PayU, which has deep expertise in the region, can help navigate these challenges easily. 

 

South Africa’s payments sector is tightly regulated by the South African Reserve Bank (SARB) and other bodies. Key initiatives impacting eCommerce payments include: 

 

• The Payments Association of South Africa (PASA) initiatives to modernize payments. 

 

• South African Reserve Bank’s Vision 2025, aiming to create a safer, faster, and more inclusive payments ecosystem. 

 

• Implementation of Strong Customer Authentication (SCA) practices. 

 

Compliance is non-negotiable, and working with a licensed, compliant payment gateway like PayU ensures that merchants meet all regulatory requirements while delivering a seamless payment experience. 

South Africa has a rich ecosystem of local financial innovations, including: 

 

• Instant Account Transfers: Streamlining EFT payments to make them faster and more secure. 

 

• Mobile Money: Although not as dominant as in other African markets, mobile money services are growing, particularly for lower-income groups. 

 

• Scan-to-Pay QR Codes: QR payments are gaining traction, particularly in informal sectors and among small businesses. 

 

PayU’s suite of offerings is designed to integrate with these local innovations, helping merchants stay ahead of consumer trends. 

As the eCommerce and fintech ecosystems continue to evolve, staying informed and connected is crucial. That’s why PayU is proud to sponsor the Converge Africa 2025 event, one of the most important gatherings for digital commerce leaders on the continent. 

 

Converge Africa will bring together thought leaders, innovators, and merchants to explore: 

 

• The future of eCommerce in Africa. 

 

• Payment innovation and financial inclusion. 

 

• Data security and regulatory compliance. 

 

• Strategies for scaling businesses across the continent. 

 

Attending Converge is a must for businesses serious about expanding in South Africa and beyond. As a sponsor, PayU will be showcasing its latest payment innovations and sharing insights on how merchants can drive growth through better payments. 

 

Stay tuned for more details on our booth, speaking sessions, and networking opportunities at Converge Africa 2025! 

The future of eCommerce payments in South Africa is bright but competitive. Businesses must stay agile, embrace innovation, and prioritize customer-centric payment experiences to win in this dynamic market. 

 

With PayU’s robust technology, local expertise, and global strength, merchants can confidently navigate the challenges and seize the opportunities in South Africa’s digital economy. 

 

As we look forward to the conversations and innovations at Converge Africa 2025, one thing is clear: the future of payments is now—and it’s more exciting than ever.