The digital payment system in South Africa has undergone tremendous change over the past ten years, and the dynamics that have been affected are those that are being driven by an increased demand for quicker transactions by both the consumer and businesses. An industry that was previously dominated by conventional transactions using cards to make transactions and slow bank transfers has been revolutionised to an array of digital payment systems and electronic fund transfers that are revolutionising the way people are conducting their transactions to meet their daily needs.
At the core of this transformation are the underlying payment rails — the technical networks and systems that enable funds to move between parties. These rails determine not only how payments are processed but also how quickly and conveniently users can pay. In South Africa, a diverse set of rails now operates alongside one another, combining legacy systems with newer, real-time solutions to meet modern demands.
One of the most familiar rails is the card network system, built on global infrastructures like Visa and Mastercard. For years, card payments were the go-to method for online purchases, yet they continue to involve multiple steps and often slower settlement times compared with newer solutions.
Electronic Funds Transfer (EFT) itself has long been a mainstay of South African payments. Traditional EFTs — direct bank transfers from one account to another — have historically taken two to three days to settle and required users to manually initiate payments via their banking apps. While reliable and cost-effective, this process wasn’t always suited to the immediacy of online commerce.
However, in recent years, new technologies such as Instant EFT and “pay by bank” applications have been developed to make bank payments more convenient by enabling real-time payment. Modern EFT solutions allow consumers to make payments without having to leave the merchant’s website or application, which makes the process much more convenient for online merchants. The new technology takes only one to two days compared to the manual EFT process, which is much more intuitive.
Alongside these developments, South Africa has also pioneered Real-Time Clearing (RTC) and Rapid Payments Programme (RPP) rails. RTC enables funds to be transferred instantly between accounts, while RPP (also known as PayShap) allows real-time transfers using simple identifiers like mobile numbers. These rails make small transfers virtually instantaneous and have become increasingly important in everyday peer-to-peer transactions.
For consumers who may not have cards or prefer not to use them online, these bank-centric rails offer a secure and inclusive alternative. Digital wallets and localised payment methods can tie into these rails too, further expanding the reach of digital payments across different segments of the population.
This new payment infrastructure is not limited to physical retail or services. In the online gaming and entertainment industry, such payment systems are a necessity. For instance, EasyEFT casino payments enable users to pay into a digital account directly from their bank account. This is a fusion of bank transfer security and online payment convenience. This is a reflection of the larger consumer need for safe, quick, and seamless payment experiences on all online touchpoints.
This new payment infrastructure is not limited to brick-and-mortar retail and services. In the online gaming and entertainment business, this payment system is a necessity. EasyEFT online casino payments allow users to pay directly into a digital wallet using their bank account. This is a combination of bank transfer security and online payment system ease of use. This is a reflection of the broader consumer desire for safe, fast, and frictionless payments on all online touchpoints.