South Africa Takes The Lead in Revenue Within The African Fintech Sector
In a report published by Research and Markets, South Africa has been recognized for having one of the most sophisticated financial sectors, generating approximately 40% of all fintech revenue in Africa.
This recognition comes following the remarkable growth in South Africa’s Fintech sector, although small, is experiencing rapid development and transforming the financial sphere through digitization, streamlining, and in some cases, disruption.
In 2023, the use of digital payments in South Africa experienced rapid growth, surpassing the expansion of e-commerce. Digital wallets and contactless payment systems such as Apple Pay, Samsung Pay, and Google Pay, gained significant momentum among consumers.
A recent study by Stitch, a payments infrastructure company, revealed that over 50% of surveyed South Africans choose to use digital wallets and contactless payment systems when making purchases in commercial establishments.
Also, findings reveal that a vast number of South Africans allocate approximately 10% of their income to online purchases. The increase in online spending has favored the use of cards, which remain the predominant method in e-commerce.
However, the market growth and demand for more efficient payment options have led to the emergence of new alternatives, such as bank transfers and increasingly, digital wallets and contactless systems, which compete with cards in both online transactions and physical stores.
Moreover, South Africa’s position as a regional financial hub and its strong ties to global markets have contributed to the growth of its fintech sector. International investors and partners recognize the potential of the South African market and are increasingly collaborating with local fintech companies to tap into opportunities for growth and expansion.
Overall, the country’s leadership in fintech revenue underscores its status as a dynamic and innovative player in the global fintech landscape. With continued investment, collaboration, and regulatory support, South Africa is poised to maintain its leading position and drive further advancements in financial technology across the African continent.
