South Africa To Get New Payment System In 2023

More South Africans will be able to make payments through their mobile devices next year.

As mobile payments continue to grow in popularity around the world, Africa is expected to lead the way, accounting for more than 70% of global transaction value by 2023, according to payments firm Network International.

South Africa, in particular, is expected to see steady growth in mobile payments over the next year, noting that consumers are becoming more comfortable in using their smartphones and other devices to make purchases. This shift could have a major impact on the country's economy, as businesses adopt new technologies to cater to mobile shoppers.

"We see mobile payments in Africa continuing their upward trend, although they may not maintain the same aggressive pace. Growth will be driven by interoperability between multiple payment types," said Chris Wood, the regional managing director for Southern Africa at Network International, according to Business Tech.

"We foresee a lot more integration between the store of value offerings, rather than pure mobile-to-mobile type interactions," he added.

Wood predicted, in 2023, many payment providers will be concentrating on making sure their payment options can be used on a variety of different payment platforms. In addition, as the infrastructure improves, people will be more likely to use trustworthy sources.

According to Network International, the next development for their payment systems will be in the Rapid Payments Programme (RPP).

Rapid Payments Programme (RPP) in South Africa is an industry-wide initiative to create a simpler, safer, and cheaper instant payment environment for all citizens. In other words, it will allow people to make real-time payments using easy-to-remember identifiers like mobile numbers or email addresses.

Not only does it support the South African Reserve Bank's (SARB) digital transformation journey, but it will also enable users of the system to request payment from other users digitally in a much more straightforward and cost-effective way than ever before.

"The migration will also pave the way for faster payments through the introduction of the Rapid Payments Programme (RPP), which is expected to be launched in 2023," said Lesetja Kganyago, Governor of the South African Reserve Bank (SARB), as per the outlet.