The year digital payments redefine SA's financial landscape

Aart Jurriaanse, chief operating officer at Pay@. Image supplied

From cash to clicks

In just a few years, everyday transactions have been reshaped by banking apps, e-wallets, instant EFT, QR payments and contactless tap-to-pay, with consumers increasingly expecting real-time confirmation, simple user journeys, and low-cost convenience.

2026 is set to be the year digital payments move from “fast-growing” to fully mainstream, forcing banks, retailers and payment providers to compete not only on innovation, but on trust, accessibility and value.

If you showed a bank cheque to a Gen Alpha, chances are that they won’t know what it is or what to do with it.

Even though cheques once accounted for 80% of non-cash payments and were only officially discontinued on 31 December 2020 in South Africa, technology has permanently replaced one of the oldest recognised payment instruments.

For these consumers, the concept of a handwritten payment method that takes a few days to clear is a completely foreign concept.

To them, everyday payments equal choice and convenience. As they start to enter adulthood within the next two years, the financial payments landscape will welcome this generation with fast and easy transactions at the touch of a few buttons, from digital wallets, peer-to-peer apps, bank transfers, contactless payments, cryptocurrency, vouchers, and QR codes.

Payments as choice, speed and convenience

In 2026, technological advances in fintech will continue to expand payment choices, complementing cash rather than eliminating it.

While experts predict that cash usage will decline over the next few years, cash will still play an important role for many consumers, especially where simplicity, familiarity, and accessibility matter most.

Cash won’t completely be replaced in the foreseeable future but will co-exist with and complement the increasing adoption of digital payments.

Modernising South Africa’s payment ecosystem

Initiatives such as the SARB’s Payment Ecosystem Modernisation journey is evidence of this drive towards an accelerated adoption of digital transactions in South Africa.

Over the past five years, South Africa’s major banks have reported vast growth of their digital platforms, such as the banking app, and a considerable decrease in monthly cash withdrawals and deposits.

Simultaneously, new instant, low-cost, mobile payment systems are attracting millions of South Africans as a payment solution.

In a country such as South Africa, where the mobile phone connections are almost double the population, these provide much-needed access and financial inclusion.

In 2025, the South African population stood at 63.1 million but had 124 million mobile connections.

Youth at the centre of the cashless shift

South African youth are leading the adoption of digital payments, especially Gen Z. With Gen Alpha fast approaching their adult financial journey, these market and behaviour shifts are likely to strengthen even more.

Pay@ research shows, while cash is still a prominent payment medium, over the past 12 months, South Africans from all demographics are increasingly choosing digital payment methods over traditional cash and physical cards.

Digital payments, such as banking apps and e-wallets, have grown significantly, with some banks’ bill payment volumes increasing more than 20% year-on-year.

Real-time validation builds trust

When it comes to in-app bill payments, consumers indicate that their preference for this payment solutions stems from the real-time validation of the bill amount and payment reference as well as the confirmation of the transaction to the biller in real-time.

This ensures that the latest amount due is settled and no unreconciled payments remain.

A survey conducted by Pay@ indicates that over 50% of consumers have tried a new payment method beyond physical cash and bank cards in the past year.

Payment behaviour will continue to noticeable shift in the coming year, driven by digital adoption, consumer preference changes, and technological innovation.

Most importantly, customers are looking for payment options that offer them the most convenience and suit their needs.

Key payment trends shaping 2026

Retailers, businesses, and financial institutions can expect these major trends in 2026 to determine and influence South Africa’s payment ecosystem:

• An increased usage of in-app banking bill payment solutions as well as bank-direct EFT APIs.
  
• A migration to digital payment methods over traditional cash and physical cards, driven by the new industry initiatives and standards such as PayShap and QR+.
  
• Mobile and wallet-based payments (Apple Pay, Google Pay, Samsung Pay) gaining traction.
  
• An increase in new but niche payment options such as Buy Now Pay Later (BNPL) and crypto payments.
  
• A decline in cash transactions because of increased usage of these digital payment solutions.

In 2026, retailers have indicated that they intend to drive their digital wallet and banking solutions offering more aggressively to provide a one-stop solution for consumers, where they can purchase essentials and complete everyday transactions via the channel of their choice.

Many South Africans have also noted that digital bill payments, in additional to traditional cash or in-store options, are increasingly becoming a trusted everyday tool for consumers.

Digital payments become an everyday essential

According to Gerhard Hayes, divisional executive: Value Added Services at Capitec, Capitec has seen ongoing month-on-month growth in digital transactions as clients shift to cashless options through the Capitec app — saving time and feeling more secure.

By the end of October 2025, more than 14 million Capitec clients were using the app to buy essentials like airtime and electricity, and to pay bills.

Capitec Pay Bills has become a widely adopted way for clients to settle utilities, municipal accounts, DStv and traffic fines as payment choices expand.

This year is more than the start a new year for payment providers and consumers. I am confident that 2026 will be remembered as the year where digital payment solutions solidified its place in the mind of the consumer as the future of transactions, whether they belong to the Gen Alpha, Gen Z, Millennial or Gen X generations.