Payfast by Network, part of Network International, a leading fintech company in Africa and the Middle East, has launched the fifth edition of its State of Pay report, providing an in-depth look into South Africa’s digital payments landscape.

Under the theme of ‘Powering Economic Growth Through Evolving Payments’, the 2025 edition explores how digital payment methods and solutions have enabled merchants and small and medium enterprises (SMEs) to grow their businesses. This is based on key insights and anonymised data collected from the Payfast platform and annual merchant and consumer surveys.

Mpho Sadiki, Managing Director of Merchant Services, Africa at Network International and Payfast, reflected on how advancements in payment technologies are influencing business growth. “Next-generation payment rails have forever transformed how South African consumers and merchants engage in commerce. Digital payments are not just something nice to have; they are the starting point of their digitisation and modernisation efforts, a means to access new markets and ultimately grow their businesses in a resilient, secure and sustainable way.”

Central to the report are the findings of Payfast by Network’s annual merchant survey, through which entrepreneurs and business owners share insights into the nature of their businesses, their operations related to transactions and payment methods, and their overall outlook and sentiment towards the role of digital payments.

The survey gathered unique insights into the digital activities of South African businesses across a diverse range of industries, including clothing and accessories, recreation and travel, and general merchandise. One of the most notable results from the survey is the impact of adopting digital payments. When asked whether digital payments had led to an increase in business sales and revenue, almost 70% of respondents reported increases of up to 50%, while just over 35% reported increases even higher than that.

“Payfast has always been guided by the goal of supporting entrepreneurs with investments in new technologies and promoting financial inclusion. By deploying simple product design and onboarding principles and a competitive pricing strategy, we make it as easy, convenient and secure as possible for merchants to engage in in-person and e-commerce business,” Sadiki explained.

In addition to the merchant survey, the 2025 State of Pay report features insights from Payfast’s consumer survey. The findings reveal that card payments remain the top choice for online purchases. Meanwhile, Buy Now, Pay Later (BNPL) options are gaining traction, with usage doubling from 2024 to 2025.

Credit facilities like Mobicred are also making their mark, with nearly a third of respondents reporting usage—highlighting a growing demand for flexible, affordability-driven payment tools.

Security continues to be a non-negotiable factor in digital transactions, with over 65% of consumers prioritising data protection and encryption when choosing how to pay online. Clothing and accessories remain the most purchased category online, accounting for nearly half of all transactions—suggesting a strong appetite for fashion and lifestyle products in the ecommerce space.

The report also features input from Payfast’s executive team and success stories from key payment partners, Mobicred and TymeBank. Their integrations with the Payfast payment platform enable merchants to offer retail store credit facilities to customers and access capital for business funding.

“We would not be where we are today were it not for the collaborative input of our industry partners and our shared drive to deliver added value to merchants and their customers. With products such as Mobicred and Easy Advance in partnership with TymeBank, we enhance our solutions offering and help businesses fully embrace electronic commerce,” Sadiki added.

Shoneez Magan, Head of Marketing at Payfast by Network, commented on the role that the State of Pay report plays in reporting on current payment trends and industry developments. “The 2025 State of Pay exemplifies Payfast’s ambition to go beyond reporting numbers and share South Africa’s story of digital commerce. Resources such as the State of Pay are critical for all stakeholders, including consumers, businesses, industry regulators and policymakers. And in the five years since it first debuted, the report has evolved, providing the proof points of an economy that shows so much potential and laying out the path towards continued, sustainable growth.”