SA is at the forefront of a digital transformation that is reshaping the economy right across the continent. According to the latest data by the Independent Communications Authority of SA, about 75% of South African households have some form of internet access, and online retail sales have exceeded R100bn in 2025. Increasingly, the distinction between e-commerce and traditional retail is fading, as consumers expect seamless, omnichannel experiences, transacting wherever they are, whenever they choose, using whatever channel is most convenient.
Yet, the evolution of SA’s digital economy is not without its challenges. Persistent trust issues, and high rates of cart abandonment, signal a gap in consumer confidence in digital transactions.
These challenges highlight the vital role that secure payment innovation plays in building trust, fostering digital inclusion, and unlocking the full potential of SA’s digital retail economy. South African shoppers have a valuable opportunity to gain greater confidence in digital payment systems by learning how advancements in security technologies including technologies like tokenisation, biometric authentication, and artificial intelligence (AI)-driven fraud detection, can address their concerns head-on.
Security as the cornerstone of digital transformation
Trust and security are fundamental to the success of any digital economy. Mastercard’s 2025 whitepaper on AI in Africa highlights the critical importance of integrating advanced security measures into payment ecosystems. Fraud and cybersecurity risks are a critical area that Mastercard is tackling head-on to advance digital adoption in markets like SA where card is the safest payment mechanism to make those digital purchases.
To help mitigate these threats and build a resilient e-commerce landscape, Mastercard has deployed multilayered security solutions that integrate seamlessly into consumers’ payment journeys. AI-powered systems now sit at the heart of fraud detection and prevention. These solutions analyse transaction patterns in real time, identifying anomalies and automatically neutralising threats to protect both consumers and retailers. This innovation has helped secure 159-billion online transactions annually and has prevented billions of rand in fraud loss.
Tokenisation, one of the most innovative advancements in payment security, safeguards sensitive financial data by replacing card details with encrypted tokens. This ensures that even in the unlikely event of a data breach, personal and payment information remains inaccessible. Mastercard’s commitment to achieving 100% e-commerce tokenisation by 2030 reinforces digital safety by replacing card details with secure tokens, reducing fraud, improving approval rates, and enabling faster, safer online checkouts.
Biometric authentication (fingerprints or facial recognition for identity verification) further enhances security by giving consumers peace of mind that only they can authorise their transactions.
E-commerce and secure payment innovation go hand in hand
E-commerce in SA is surging, driven by a growing middle class, increased internet penetration, and an expanding appetite for online shopping.
According to the 2025 World Wide Worx Online Retail Study, issued in collaboration with Mastercard and Peach Payments, over the past three years, SA’s e-commerce market has expanded from crossing the R100bn mark in turnover to being on track for R400bn and more than 1-billion transactions. Secure payment solutions are critical enablers of seamless shopping experiences and long-term e-commerce growth.
Real-time payment solutions address significant pain points for both consumers and merchants. Improved transaction reliability, biometric authentication and speed reduce cart abandonment and support business growth by offering merchants faster access to their funds, improving cash flow and liquidity. This shift unlocks new growth opportunities for merchants and improves the digital checkout experience for consumers.
The role of secure payments in driving digital inclusion
The most powerful dividend of secure payment innovation is inclusion. When people can transact with confidence and trust, we welcome them into the digital economy. In addition, small and medium enterprises (SMEs) are the backbone of local economies in Africa, driving roughly half of GDP across Sub-Saharan Africa. Yet, most remain locked out of formal finance. The $330bn credit gap they face is more than a financing issue; it’s a structural hurdle to innovation, productivity and inclusive growth.
In SA, Mastercard is addressing this with innovative approaches through advancing digital payments, acceptance solutions and value-added services for SMEs.
When SMEs can offer secure, low-friction digital payments, they can reach new buyers, build credit histories that can streamline access to credit, and participate in online marketplaces that were previously out of reach.
The recent Mastercard SME Confidence Index highlights that acceptance of secure digital payments is a top priority for small businesses. In addition to Mastercard’s innovative technology and collaborations to scale access, the multinational payment card services corporation also builds confidence among merchants and consumers by educating and sharing guidance on secure checkout, dispute processes, and best practices.
The outcome is not only secure transactions but also broader participation in the digital economy — especially for smaller merchants and the communities they serve.
Collaboration as the catalyst for progress
No single organisation or sector can drive digital transformation in isolation. Collaboration between governments, fintech innovators, retailers, and global technology companies is essential to building secure, scalable, and inclusive payment ecosystems.
By working together with fintech companies to improve payment infrastructure (such as the Payshap real-time payments system) and creating interoperability across platforms, these collaborations are accelerating financial inclusion and enabling businesses to thrive in the digital economy. This is aligned with the South African Reserve Bank’s National Payments System Strategy Vision 2025.
A vision for the future
Secure payment innovation is not just about preventing fraud or closing transactions; it’s about closing that trust gap that prevents South Africans from participating in the digital economy to the fullest extent. It is about enabling access and fostering growth.
SA’s digital retail economy is on an exciting trajectory, with enormous potential for inclusive and sustainable development. The convergence of AI-driven innovation, secure payment solutions, and inclusive strategies will create an ecosystem where businesses and consumers alike can thrive.
The road ahead requires sustained investment, public-private collaboration, and a shared commitment to security and inclusivity. With the right strategies in place, SA’s digital retail economy can set a benchmark for broader transformation across the continent. Together, we can unlock a future where secure payments fuel progress, prosperity, and participation for all.
This article was sponsored by Mastercard.
