South Africans embrace new payment methods amid rising digital adoption

A new report from fintech company Stitch highlights a major shift in consumer behaviour, with over 90% of South Africans trying alternative payment methods like digital wallets, bank transfers, and crypto. Security, trust, and speed remain key to adoption.

South African consumers are increasingly open to alternative ways to pay, according to a new report by Stitch, a leading enterprise payments infrastructure provider operating across Africa. The 2025 South Africa Consumer Payments Report reveals a marked shift in preferences, with digital wallets, bank transfers, Buy Now Pay Later (BNPL), and even cryptocurrencies gaining traction.

While cash and traditional cards still lead, over 90% of respondents reported using a new or alternative payment method in the past year. Digital wallets such as Apple Pay, Google Pay, and Samsung Pay have seen a notable increase in adoption, rising from 54% in the previous year to over 70% in 2025. One in five consumers say they frequently or always use these methods.

Merchants offering these digital wallets, especially online, stand to benefit. In one case, when a South African retail enterprise launched Apple Pay with Stitch, over 33% of iOS transactions were made using Apple Pay on day one, growing to 40% within two weeks. The wallet also outperformed traditional cards, with conversion rates exceeding 90% and 95% of payments processed in under five seconds.

Bank transfers are also on the rise. Nearly 50% of respondents said they had used Pay by bank or Capitec Pay for the first time in the last year. Capitec Pay's growing popularity is reflected in the bank’s own financials, with net income increasing by 89%. These methods appeal to both consumers and merchants, offering real-time payments, reduced fees, and faster settlements.

BNPL solutions have been adopted by 45% of those surveyed, often used for larger purchases that are difficult to pay for upfront. In the retail sector, BNPL is helping drive higher cart values and improved conversion rates.

Even crypto is gaining ground. One-third of respondents said they had used cryptocurrency to pay for everyday items. South African retailer Pick n Pay, for example, reported more than R1 million in monthly crypto payments within a year of enabling the option chain-wide.

However, the report cautions that expanding payment options is not without challenges. Fraud, poor user experience, and lack of familiarity are top barriers to adoption. According to SABRIC, banking app fraud represents 60% of all digital banking crimes in South Africa, while Card Not Present (CNP) fraud makes up 68% of total card fraud.

Consumers are wary of new checkout experiences that seem untrustworthy or demand too much personal information. Over 90% say they would prefer to authenticate payments using biometrics or passkeys rather than skipping security entirely. Additionally, 45% of consumers won’t complete a transaction if they don’t recognise the payment provider.

To overcome these concerns, Stitch recommends that businesses partner with secure and intelligent payment gateways. Stitch’s payment infrastructure is built with enterprise security at its core, offering tools like Stitch Shield, Dynamic 3D Secure and PCI DSS Level 1 compliance. These features are designed to maintain speed and ease of use while reducing fraud risk, giving businesses the confidence to scale payment offerings without sacrificing trust.