Financial Cards and Payments in South Africa

Financial Cards and Payments in South Africa

The emergence of the pandemic and subsequent lockdown measures introduced by the government in an attempt to control the spread of the virus had a significant impact on transaction value across consumer payment transactions in 2020, due to price sensitivity amongst many South Africans as result of rising unemployment and decreasing disposable incomes. This led to a greater prioritising of expenditure amongst consumers regarding essential goods and services including groceries and medicine. This...

Euromonitor International's Financial Cards and Payments in South Africa report establishes the size and structure of the market for ATMs cards, smart cards, credit cards, debit cards, charge cards, pre-paid cards and store cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.

Product coverage: Financial Cards in Circulation, M-Commerce, Transactions.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
* Get a detailed picture of the Financial Cards and Payments market;
* Pinpoint growth sectors and identify factors driving change;
* Understand the competitive environment, the market’s major players and leading brands;
* Use five-year forecasts to assess how the market is predicted to develop.

Euromonitor International has over 40 years' experience of publishing market research reports, business reference books and online information systems. With offices in London, Chicago, Singapore, Shanghai, Vilnius, Dubai, Cape Town, Santiago, Sydney, Tokyo and Bangalore and a network of over 800 analysts worldwide, Euromonitor International has a unique capability to develop reliable information resources to help drive informed strategic planning.


Financial Cards and Payments in South Africa
Euromonitor International
November 2020
List OF CONTENTS AND TABLES
EXECUTIVE SUMMARY
COVID-19 impact on consumer payments
COVID-19 country impact
Number of open loop pre-paid cards continues to rise in 2020 due to use of government benefit cards and financial assistance in the form of grants
M-commerce continues to record impressive performance driven by further move towards digitalisation and driven by affluent, younger, tech-savvy consumers
Consolidated competitive landscape with pandemic set to impact a number of players in varying ways
What next for consumer payments?
MARKET INDICATORS
Table 1 Number of POS Terminals: Units 2015-2020
Table 2 Number of ATMs: Units 2015-2020
Table 3 Value Lost to Fraud 2015-2020
Table 4 Card Expenditure by Location 2020
Table 5 Financial Cards in Circulation by Type: % Number of Cards 2015-2020
Table 6 Domestic versus Foreign Spend 2020
MARKET DATA
Table 7 Financial Cards by Category: Number of Cards in Circulation 2015-2020
Table 8 Financial Cards by Category: Number of Accounts 2015-2020
Table 9 Financial Cards Transactions by Category: Value 2015-2020
Table 10 Financial Cards by Category: Number of Transactions 2015-2020
Table 11 Consumer Payments by Category: Value 2015-2020
Table 12 Consumer Payments by Category: Number of Transactions 2015-2020
Table 13 M-Commerce by Category: Value 2015-2020
Table 14 M-Commerce by Category: % Value Growth 2015-2020
Table 15 Financial Cards: Number of Cards by Issuer 2015-2019
Table 16 Financial Cards: Number of Cards by Operator 2015-2019
Table 17 Financial Cards: Card Payment Transactions Value by Operator 2015-2019
Table 18 Financial Cards: Card Payment Transactions Value by Issuer 2015-2019
Table 19 Forecast Financial Cards by Category: Number of Cards in Circulation 2020-2025
Table 20 Forecast Financial Cards by Category: Number of Accounts 2020-2025
Table 21 Forecast Financial Cards Transactions by Category: Value 2020-2025
Table 22 Forecast Financial Cards by Category: Number of Transactions 2020-2025
Table 23 Forecast Consumer Payments by Category: Value 2020-2025
Table 24 Forecast Consumer Payments by Category: Number of Transactions 2020-2025
Table 25 Forecast M-Commerce by Category: Value 2020-2025
Table 26 Forecast M-Commerce by Category: % Value Growth 2020-2025
DISCLAIMER
GLOBAL MACROECONOMIC ENVIRONMENT
GLOBAL INDUSTRY ENVIRONMENT
SOURCES
Summary 1 Research Sources
KEY DATA FINDINGS
2020 IMPACT
Rising unemployment and weak consumer sentiment as a result of the pandemic reduces usage and spending via debit cards in 2020 due to greater focus on essential goods
Number of debit cards continues to rise supported by move away from cash during pandemic with greater uptake of contactless smart cards
Consolidated competitive landscape within debit cards amongst major issuers but end of review period sees a number of disruptive digital banks enter
RECOVERY AND OPPORTUNITIES
Stronger performance predicted for debit cards over the course of the forecast period, driven by drive to attract unbanked in a further move away from cash
Leading banks likely to look to digital tools to improve customer service in the face of growing competition from digital banks
Increasing popularity of mobile m-commerce to be supported by investment by leading banks
CATEGORY DATA
Table 27 Debit Cards: Number of Cards in Circulation 2015-2020
Table 28 Debit Cards Transactions 2015-2020
Table 29 Debit Cards in Circulation: % Growth 2015-2020
Table 30 Debit Cards Transactions: % Growth 2015-2020
Table 31 Debit Cards: Number of Cards by Issuer 2015-2019
Table 32 Debit Cards: Number of Cards by Operator 2015-2019
Table 33 Debit Cards Payment Transaction Value by Issuer 2015-2019
Table 34 Debit Cards Payment Transaction Value by Operator 2015-2019
Table 35 Forecast Debit Cards: Number of Cards in Circulation 2020-2025
Table 36 Forecast Debit Cards Transactions 2020-2025
Table 37 Forecast Debit Cards in Circulation: % Growth 2020-2025
Table 38 Forecast Debit Cards Transactions: % Growth 2020-2025
KEY DATA FINDINGS
2020 IMPACT
Declines across credit cards due to concerns relating to over-indebtedness but personal credit card utilisation significantly rises in 2020
Payment relief for struggling consumers introduced by banks during initial lockdown period
Consolidated competitive landscape within credit cards but digital banks gain momentum during lockdown
RECOVERY AND OPPORTUNITIES
Slow start to recovery with credit cards unlikely to surpass pre-pandemic levels until 2025 in terms of transaction value
Credit cards set to become increasingly competitive landscape as main issuers look to maintain customers and address threat of dynamic digital banks
Value lost to fraud likely to drive greater security measures to attract customers
CATEGORY DATA
Table 39 Credit Cards: Number of Cards in Circulation 2015-2020
Table 40 Credit Cards Transactions 2015-2020
Table 41 Credit Cards in Circulation: % Growth 2015-2020
Table 42 Credit Cards Transactions: % Growth 2015-2020
Table 43 Commercial Credit Cards: Number of Cards in Circulation 2015-2020
Table 44 Commercial Credit Cards Transactions 2015-2020
Table 45 Commercial Credit Cards in Circulation: % Growth 2015-2020
Table 46 Commercial Credit Cards Transactions: % Growth 2015-2020
Table 47 Personal Credit Cards: Number of Cards in Circulation 2015-2020
Table 48 Personal Credit Cards Transactions 2015-2020
Table 49 Personal Credit Cards in Circulation: % Growth 2015-2020
Table 50 Personal Credit Cards Transactions: % Growth 2015-2020
Table 51 Credit Cards: Number of Cards by Issuer 2015-2019
Table 52 Credit Cards: Number of Cards by Operator 2015-2019
Table 53 Credit Cards Payment Transaction Value by Issuer 2015-2019
Table 54 Credit Cards Payment Transaction Value by Operator 2015-2019
Table 55 Commercial Credit Cards: Number of Cards by Issuer 2015-2019
Table 56 Commercial Credit Cards: Number of Cards by Operator 2015-2019
Table 57 Commercial Credit Cards Payment Transaction Value by Issuer 2015-2019
Table 58 Commercial Credit Cards Payment Transaction Value by Operator 2015-2019
Table 59 Personal Credit Cards: Number of Cards by Issuer 2015-2019
Table 60 Personal Credit Cards: Number of Cards by Operator 2015-2019
Table 61 Personal Credit Cards Payment Transaction Value by Issuer 2015-2019
Table 62 Personal Credit Cards Payment Transaction Value by Operator 2015-2019
Table 63 Forecast Credit Cards: Number of Cards in Circulation 2020-2025
Table 64 Forecast Credit Cards Transactions 2020-2025
Table 65 Forecast Credit Cards in Circulation: % Growth 2020-2025
Table 66 Forecast Credit Cards Transactions: % Growth 2020-2025
Table 67 Forecast Commercial Credit Cards: Number of Cards in Circulation 2020-2025
Table 68 Forecast Commercial Credit Cards Transactions 2020-2025
Table 69 Forecast Commercial Credit Cards in Circulation: % Growth 2020-2025
Table 70 Forecast Commercial Credit Cards Transactions: % Growth 2020-2025
Table 71 Forecast Personal Credit Cards: Number of Cards in Circulation 2020-2025
Table 72 Forecast Personal Credit Cards Transactions 2020-2025
Table 73 Forecast Personal Credit Cards in Circulation: % Growth 2020-2025
Table 74 Forecast Personal Credit Cards Transactions: % Growth 2020-2025
KEY DATA FINDINGS
2020 IMPACT
Notable declines across the niche of charge cards due to lockdown
More notable declines for commercial charge cards in 2020 due to travel restrictions
Highly consolidated competitive landscape for charge cards
RECOVERY AND OPPORTUNITIES
Charge cards set to gradually recover depending on lifting of travel restrictions heading into 2021 and consumers’ concerns over air travel
Commercial charge cards set to be the weaker performer with competition from credit cards
Charge cards likely to remain consolidated niche but digitalisation within South African financial cards could drive innovation within the category
CATEGORY DATA
Table 75 Charge Cards: Number of Cards in Circulation 2015-2020
Table 76 Charge Cards Transactions 2015-2020
Table 77 Charge Cards in Circulation: % Growth 2015-2020
Table 78 Charge Cards Transactions: % Growth 2015-2020
Table 79 Commercial Charge Cards: Number of Cards in Circulation 2015-2020
Table 80 Commercial Charge Cards Transactions 2015-2020
Table 81 Commercial Charge Cards in Circulation: % Growth 2015-2020
Table 82 Commercial Charge Cards Transactions: % Growth 2015-2020
Table 83 Personal Charge Cards: Number of Cards in Circulation 2015-2020
Table 84 Personal Charge Cards Transactions 2015-2020
Table 85 Personal Charge Cards in Circulation: % Growth 2015-2020
Table 86 Personal Charge Cards Transactions: % Growth 2015-2020
Table 87 Charge Cards: Number of Cards by Issuer 2015-2019
Table 88 Charge Cards: Number of Cards by Operator 2015-2019
Table 89 Charge Cards Payment Transaction Value by Issuer 2015-2019
Table 90 Charge Cards Payment Transaction Value by Operator 2015-2019
Table 91 Commercial Charge Cards: Number of Cards by Issuer 2015-2019
Table 92 Commercial Charge Cards: Number of Cards by Operator 2015-2019
Table 93 Commercial Charge Cards Payment Transaction Value by Issuer 2015-2019
Table 94 Commercial Charge Cards Payment Transaction Value by Operator 2015-2019
Table 95 Personal Charge Cards: Number of Cards by Issuer 2015-2019
Table 96 Personal Charge Cards: Number of Cards by Operator 2015-2019
Table 97 Personal Charge Cards Transaction Value by Issuer 2015-2019
Table 98 Personal Charge Cards Transaction Value by Operator 2015-2019
Table 99 Forecast Charge Cards: Number of Cards in Circulation 2020-2025
Table 100 Forecast Charge Cards Transactions 2020-2025
Table 101 Forecast Charge Cards in Circulation: % Growth 2020-2025
Table 102 Forecast Charge Cards Transactions: % Growth 2020-2025
Table 103 Forecast Commercial Charge Cards: Number of Cards in Circulation 2020-2025
Table 104 Forecast Commercial Charge Cards Transactions 2020-2025
Table 105 Forecast Commercial Charge Cards in Circulation: % Growth 2020-2025
Table 106 Forecast Commercial Charge Cards Transactions: % Growth 2020-2025
Table 107 Forecast Personal Charge Cards: Number of Cards in Circulation 2020-2025
Table 108 Forecast Personal Charge Cards Transactions 2020-2025
Table 109 Forecast Personal Charge Cards in Circulation: % Growth 2020-2025
Table 110 Forecast Personal Charge Cards Transactions: % Growth 2020-2025
KEY DATA FINDINGS
2020 IMPACT
Number of open loop pre-paid cards continues to rise, boosted by increasing number of unbanked demanding access to government relief funding as result of pandemic
More significant declines for closed loop pre-paid cards in 2020 due to dominance of transportation cards, with latter impacted by lockdown
Consolidated competitive landscape with South African Postbank now issuing SASSA grants
RECOVERY AND OPPORTUNITIES
More positive outlook for pre-paid cards from 2021 onwards but average spend per transaction unlikely to return to pre-pandemic levels
Despite rising closed loop pre-paid card numbers, contactless technology could offer further competition as it continues to develop in the country
Digitalisation trend likely to further influence development of pre-paid cards
CATEGORY DATA
Table 111 Pre-paid Cards: Number of Cards in Circulation 2015-2020
Table 112 Pre-paid Cards Transactions 2015-2020
Table 113 Pre-paid Cards in Circulation: % Growth 2015-2020
Table 114 Pre-paid Cards Transactions: % Growth 2015-2020
Table 115 Closed Loop Pre-paid Cards Transactions 2015-2020
Table 116 Closed Loop Pre-paid Cards Transactions: % Growth 2015-2020
Table 117 Open Loop Pre-paid Cards Transactions 2015-2020
Table 118 Open Loop Pre-paid Cards Transactions: % Growth 2015-2020
Table 119 Pre-paid Cards: Number of Cards by Issuer 2015-2019
Table 120 Pre-paid Cards: Number of Cards by Operator 2015-2019
Table 121 Pre-paid Cards Transaction Value by Issuer 2015-2019
Table 122 Pre-paid Cards Transaction Value by Operator 2015-2019
Table 123 Closed Loop Pre-paid Cards: Number of Cards by Issuer 2015-2019
Table 124 Closed Loop Pre-paid Cards: Number of Cards by Operator 2015-2019
Table 125 Closed Loop Pre-paid Cards Transaction Value by Issuer 2015-2019
Table 126 Closed Loop Pre-paid Cards Transaction Value by Operator 2015-2019
Table 127 Open Loop Pre-paid Cards: Number of Cards by Issuer 2015-2019
Table 128 Open Loop Pre-paid Cards: Number of Cards by Operator 2015-2019
Table 129 Open Loop Pre-paid Cards Transaction Value by Issuer 2015-2019
Table 130 Open Loop Pre-paid Cards Transaction Value by Operator 2015-2019
Table 131 Forecast Pre-paid Cards: Number of Cards in Circulation 2020-2025
Table 132 Forecast Pre-paid Cards Transactions 2020-2025
Table 133 Forecast Pre-paid Cards in Circulation: % Growth 2020-2025
Table 134 Forecast Pre-paid Cards Transactions: % Growth 2020-2025
Table 135 Forecast Closed Loop Pre-paid Cards Transactions 2020-2025
Table 136 Forecast Closed Loop Pre-paid Cards Transactions: % Growth 2020-2025
Table 137 Forecast Open Loop Pre-paid Cards Transactions 2020-2025
Table 138 Forecast Open Loop Pre-paid Cards Transactions: % Growth 2020-2025
KEY DATA FINDINGS
2020 IMPACT
Closure of non-essential stores during lockdown significantly impacts store cards in 2020 but cards linked to purchase of groceries likely to fare better
Retailers encourage consumers to use store cards online during pandemic in line with general switch towards e-commerce
Fairly fragmented competitive landscape in terms of store cards in circulation, with pandemic having varying impact on issuers
RECOVERY AND OPPORTUNITIES
Gradual improvement predicted for store cards over the course of the forecast period, although transaction value unlikely to return to pre-pandemic levels
Issuers likely to remain cautious regarding amount of credit they offer customers due to concerns over bad debt
Digitalisation trend could offer issuers further scope for development
CATEGORY DATA
Table 139 Store Cards: Number of Cards in Circulation 2015-2020
Table 140 Store Cards Transactions 2015-2020
Table 141 Store Cards in Circulation: % Growth 2015-2020
Table 142 Store Cards Transactions: % Growth 2015-2020
Table 143 Store Cards: Number of Cards by Issuer 2015-2019
Table 144 Store Cards: Payment Transaction Value by Issuer 2015-2019
Table 145 Forecast Store Cards: Number of Cards in Circulation 2020-2025
Table 146 Forecast Store Cards Transactions 2020-2025
Table 147 Forecast Store Cards in Circulation: % Growth 2020-2025
Table 148 Forecast Store Cards Transactions: % Growth 2020-2025

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