Real-time payments meet the growing demand for speed and convenience in financial transactions. As consumer expectations evolve, having access to instant payment solutions becomes increasingly important. This not only benefits individuals but also strengthens trust and loyalty between customers and businesses​

Mastercard announced on October 8 that South Africa will be the first market to benefit from its real-time card payment technology, marking a significant step forward in the region’s digital payment landscape. The initiative will enable acquiring banks to process real-time card payments, with plans to extend the service to issuing banks in the future.

Gabriel Swanepoel, Mastercard’s Southern Africa country manager, emphasized the shift towards faster, more efficient payment processing to meet evolving consumer and business expectations. He stated, “By enhancing processing standards and delivering faster clearing and settlement, we aim to support small businesses with better cash flow and enable acquirers to manage liquidity more effectively.”

The company will implement new processing standards, including real-time clearing and more frequent settlement cycles, allowing South African merchants to receive same-day payouts. This initiative follows Mastercard’s recent network enhancements in South Africa, designed to facilitate local transaction processing.

Mastercard is collaborating with ACI Worldwide to help local acquirers adopt real-time transaction standards. The partnership aims to boost liquidity and improve payment experiences for businesses and customers alike.

This rollout is part of Mastercard’s broader strategy to drive digital transformation in cash-heavy regions. The Payments Study Report 2023 by the South African Reserve bank reveals that 98% South Africans use cash for payments. It highlights the significant potential impact of Mastercard's new real-time card payment services.

This initiative could be pivotal in reducing the country’s reliance on cash by offering faster, more secure, and convenient payment options. Given that cash transactions often come with security risks and limited transparency, Mastercard’s real-time payments could accelerate digital payment adoption, promoting financial inclusion and economic efficiency.

Hikmatu Bilali