The latest Payfast report reveals that there are 19 million underbanked individuals in South Africa, with over one million micro, small and medium-sized enterprises (MSMEs) still exclusively transacting in cash. The report, featuring insights from Capitec, Mukuru, Yebo Fresh and The Shopaholic, emphasizes the opportunities for businesses, particularly merchants, in South Africa to tap into the informal segment through diversified payment methods. The township economy, valued at R260 billion, presents a significant opportunity, but more than 80% of merchants do not plan to introduce delivery into informal settlements in the near future. The report also notes substantial growth in credit and buy-now-pay-later payment methods, with a 93% increase in the average basket size for online credit transactions.
