Ozow Expands Payment Solutions to Drive Financial Inclusion and Empower South African Merchants and Consumers
November 18, 2024
Return to blog list
Ozow Expands Payment Solutions to Drive Financial Inclusion and Empower South African Merchants and Consumers
With 87% of South Africans now holding a bank account and 70% having access to a debit or credit card, the digital payment landscape in South Africa is undergoing rapid transformation. Ozow continues to spearhead this evolution by providing inclusive, innovative payment solutions that serve both banked and unbanked populations. Through its new card payment integration, account-to-account (A2A) options, voucher systems, and ground breaking biometric solutions, the company is building a comprehensive digital payment ecosystem that strengthens both e-commerce and retail sectors.
%2520copy.gif)
Growing Market Opportunity: Expanding Card Payments for E-commerce
GrowingMarket Opportunity: Expanding Card Payments for E-commerce The online card payment market in South Africa is projected to reach $125 billion in 2024, with a compound annual growth rate (CAGR) of over 9% through 2028. Recent statistics from Bank Serv Africa and industry reports underscore the robust foundation of card payments in South Africa's financial ecosystem. The sector achieved 1.161billion transactions in 2023, maintaining steady growth with a 1% CAGR over the past decade—a testament to its resilience amidst emerging payment technologies.
The World pay Global Payments Report 2024 reveals that debit and prepaid cards currently command 29% of e-commerce transactions, whilst credit cards account for 19%, collectively representing the largest share at 48% of digital payments. Although projections suggest a modest shift to 24% for debit/prepaid cards and 16% for credit cards by 2027, their combined 40% market share demonstrates enduring significance in the digital economy.
This dominance is particularly pronounced at physical points of sale, where debit and prepaid cards hold 39% of the market share and credit cards represent 18%. This commanding 57% share of POS transactions reflects deeply established consumer trust and preference for card payments in daily commerce. By enabling card payments, Ozow helps merchants capitalise on this substantial opportunity whilst meeting increasing consumer demand for cashless and convenient payment options.
Leading the Way in Account-to-Account Payments and PayShap
As South Africa's market leader inA2A payments, which currently represent 22% of e-commerce transactions, Ozow is well-positioned to support the sector's projected growth to 26% by 2027 at aCAGR of 24%. The introduction of PayShap has revolutionised the space, processing over 14 million transactions with a cumulative value exceeding R9billion in its first year. This system provides instant, efficient A2A options that bridge digital accessibility gaps and promote financial inclusion.
Vouchers: Bridging the Gap for the Unbanked
Ozow's voucher system specifically targets South Africa's unbanked and underbanked populations, enabling individuals without traditional banking access to participate in digital commerce. This initiative allows merchants to extend their reach to previously underserved communities whilst ensuring financial participation across various economic backgrounds.
Revolutionary Biometric and Express Solutions
The introduction of Ozow Biometric and Ozow Express brings enhanced security and convenience to the payment experience. Ozow Biometric enables payment authentication through finger print or facial recognition, offering a seamless, tokenised experience across multiple merchants after a single setup. The Express feature facilitates one-click checkout, boosting conversion rates for businesses.
Unified Payment Experience
By combining card payments, A2A transfers, and voucher options, Ozow delivers a comprehensive solution that accommodates diverse consumer preferences. The OzowME app serves as a central hub for peer-to-peer (P2P), online, and POS transactions, allowing users to interact with some of South Africa's most popular brands through a single platform.
Beyond Payment Gateway: An Orchestration Platform
Ozow functions as more than a payment gateway; it serves as an orchestration and aggregation platform for merchants' entire payment ecosystems. Through its pay-in, pay-out, and cross-border remittance solutions, the platform provides businesses with end-to-end functionality that drives efficiency and growth.
Building a Digital Future
Ozow's dedication to financial inclusion and technological innovation underpins its vision of creating an accessible, cashless economy. Through its digital and biometric solutions that streamline transactions, the company is poised to drive South Africa's transformation into a dynamic digital economy. As Ozow continues to expand and innovate, it maintains its commitment to developing a unified, inclusive payment ecosystem that benefits all South Africans whilst setting new standards for digital payment solutions across the continent.
Citations
-
Thomas Pays, CEO
.png)