Use of Digital Payments is Growing Rapidly in South Africa

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The accelerating rate at which retail merchants are enabling consumers to pay digitally at point of sale is said to be fueling the growth of digital payments in South Africa.

This is according to FNB, which revealed that its Scan-to-Pay and Tap-to-Pay functionality on the FNB APP recorded the highest month-on-month usage growth in August 2020 since launch.

The Bank states that month-on-month transaction volumes on Scan-to-Pay – which allows users to scan a QR Code to make secure payments at a physical point of sale or on an online merchant website – grew by 36% in August while values increased by 39%.

Similarly, month-on-month usage of Tap-to-Pay functionality – which allows users to pay for goods by simply tapping their smartphone to pay at a point of sale – increased by 48% with values growing by 54%.

The insights are consistent with the 28% increase in FNB APP usage volumes that was reported for the previous financial year. This is also in line with customer behaviour shifting towards contactless in general, as customers realise the convenience and security benefits with contactless card transactions at Point of Sale (POS) growing month-on-month at 16.4%.

Chief Executive of FNB Retail and Private Banking, Raj Makanjee says, “Digital payments have received a significant boost over the course of the COVID-19 pandemic as more consumers and retailers are embracing the need for safety and efficiency. Digital payment methods are equally important for consumers because people can be less reliant on cash and cards by choosing to pay using their cellphone. In our case, this affords our customers the added safety of using a trusted and secure platform of our FNB APP.”

According to the bank, consumers will soon be able to take their digital payment journey one step further by using Virtual Cards. In the coming months, Android App customers with a compatible Android device will also be able to add their Virtual Card for Tap-to Pay on the App for contactless payments convenience.

Indepthtechnews

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Use of Digital Payments is Growing Rapidly in South Africa