Mukuru and Payfast expand E-Commerce access in South Africa

By integrating MPay into Payfast, the partnership opens the digital marketplace to over 13 million cash-reliant South Africans—helping local retailers reach new customers and build a more inclusive economy.

Timothee Dura, Head of Merchant Payments at Mukuru. Portal ERP South Africa. 

Millions of South Africans still rely on cash for daily transactions, a reality that has long excluded them from the digital economy. Now, a growing partnership between Mukuru, a leading African fintech specializing in cross-border remittances and digital financial services, and Payfast by Network, one of South Africa’s most prominent online payment gateways, is changing that.

For more than a year, the two companies have worked together to integrate MukuruPay (MPay) into the Payfast system, giving cash-first consumers the ability to shop online without a bank account or credit card. The move is helping local retailers tap into a previously unreachable market segment while empowering customers in both urban and rural areas to access goods and services online.

MPay allows shoppers to select Mukuru as a payment option during checkout. Once the purchase is confirmed, a unique order code is generated, giving the customer 36 hours to pay at one of Mukuru’s 11,000+ payment points, including popular retailers like Shoprite, Pick n’ Pay, Spar, and Boxer. After the cash payment is made, the merchant is notified in real time and the order is fulfilled.

This model not only reduces fraud risk and eliminates cash-on-delivery logistics but also provides a smoother, more secure shopping experience for all parties involved.

While digital transactions are on the rise, recent surveys reveal that cash remains a vital part of South Africa’s payment landscape. According to the SBV Cash Survey 2024, 22% of the population, over 13 million people, remain dependent on cash. Payfast’s “State of Pay” report further confirms that cash is still the fourth most preferred payment method in the country.

Recognizing this, businesses across sectors, from fashion to digital services and education, have begun enabling MPay via Payfast. The trend reflects growing awareness among merchants that financial inclusion is key to expanding South Africa’s e-commerce market.

Timothee Dura, Head of Merchant Payments at Mukuru, underscores the importance of meeting customers where they are:"Digital commerce must be inclusive. By offering MPay, we’re creating a secure, regulated bridge between cash-based consumers and the online marketplace, helping people participate in the economy using the payment methods they trust.”

As more merchants adopt the solution, Mukuru and Payfast are proving that financial innovation can succeed by respecting existing behaviors, rather than trying to replace them. In doing so, they are paving the way for a digital economy that truly works for everyone.