The world is changing and so are payments systems. New user demands, new technology, competition, and regulation are all evolving. These drivers are bringing about more convenient, secure and faster ways of paying.
A brief history of the payments system in South Africa1
|1||Reference: Research performed by Leo Lipis Advisors, jointly commissioned by BankservAfrica and PASA.|
The existing South African payments system
South Africans primarily use four payment streams for low-value payments: cash, electronic funds transfer (EFT), card and cheques.
All the information shown above is a part of the research performed by Leo Lipis Advisors, jointly commissioned by BankservAfrica and PASA.
International payments landscape
In the developed world, existing payments models are seeing large-scale industry overhauls. At the same time, developing economies are building a new payments infrastructure as a platform to fast-track economic development. New payment solutions and unregulated environments require us to rethink the future and explore new risks and new opportunities for the economies we serve and for our current systems.
Payment evolution trends
|1||Statista: Global mobile payment revenue, accessed 26 October 2017|
|2||Tufts: Cost of cash in the US, accessed 26 October 2017|
|3||Blockchain: Charts, accessed 26 October 2017|
The South African payments landscape
The payments system serves every aspect of the economy. Changes in economic activity drive structural changes in the system. Identifying economic trends and drivers is the first step in strategic decision-making.
The South African payments industry has large structural disparities, reflecting the differences of the population it serves1.
Given the challenging socio-economic context and the difficulties many South Africans face, the payments system must take these issues into account if it is to support real change in the country.
|1||All the information shown above is a part of the research performed by Leo Lipis Advisors, jointly commissioned by BankservAfrica and PASA.|
|2||Gini index measures the extent to which the distribution of income among individuals or households within an economy deviates from a perfectly equal distribution. Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.|