How tech is fast-changing South Africa’s payment economy

Despite the rise of new technology, traditional payment methods still dominate daily transactions. Physical cards remain the most preferred and convenient way to pay for many South Africans.

However, the report suggests that consumers are increasingly willing to experiment with innovative financial tools if they combine ease of use with strong security features.

“While traditional payment methods continue to play an important role, South Africans are showing that trust and technology can go hand in hand,” said Lineshree Moodley, country manager at Visa South Africa.

She noted that consumers are increasingly adopting new payment solutions when they offer both convenience and peace of mind.

The survey highlights strong momentum behind biometric security. About 66 percent of respondents said they already authorise payments using biometric authentication such as fingerprint or facial recognition. The trend reflects growing comfort with technology-driven security systems designed to reduce fraud.

Digital wallets are also gaining traction. Nearly four in ten South Africans said digital wallets are the fastest payment option available, and more than a third said they would recommend them to others. The data suggests rising confidence in mobile-first payment experiences as smartphone penetration continues to grow across the country.

Interest in digital currencies is also emerging, particularly for cross-border payments. Among consumers who have previously sent money abroad, 57 percent said they would consider using stablecoins as a payment option, underscoring demand for faster, more efficient international transfers.

Beyond payments, artificial intelligence is increasingly becoming part of the online shopping journey. According to the survey, 63 percent of South Africans have already used AI tools to assist with tasks such as finding gift ideas, researching products, or interacting with customer service platforms.

Still, consumers remain cautious about the technology. While nearly 45 percent believe AI-powered tools are more likely to find the best prices, most shoppers still value human interaction. Around 63 percent said they prefer speaking to a human customer service representative rather than relying solely on AI.

Security remains the dominant factor influencing payment choices. A striking 88 percent of respondents said security is extremely important when selecting how they pay. Banks were viewed as the primary guardians against fraud by 76 percent of consumers, followed by payment networks at 71 percent.

Consumers themselves are also taking a more active role in protecting their finances. Nearly half have enabled two-factor authentication on their accounts, while 40 percent regularly change their passwords.

At the same time, concerns persist around data privacy. About 60 percent of respondents said they worry about how their personal data is used by AI-powered shopping and payment platforms. Even so, 42 percent expressed confidence in their ability to detect AI-driven payment scams, highlighting a growing awareness of digital risks in an increasingly technology-driven financial ecosystem.