SA becomes FIRST country to benefit from real-time Mastercard payments

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South Africa has made a giant leap in digital finance, becoming the first country to benefit from Mastercard’s new real-time card payments system.

This initiative, a first for the global payments giant, aims to boost financial efficiency by allowing banks to process transactions instantly.

With this new system, merchants in South Africa will experience quicker payouts, enhancing cash flow management and providing easier access to funds.

For businesses – especially small and medium enterprises (SMEs) – this is a game-changer, as it frees up capital for daily operations while these companies can reinvest in growth.

“We are excited to announce this initiative, which signals a significant leap forward in the modernisation of payments in South Africa,” said Gabriel Swanepoel, Southern Africa country manager for Mastercard.

“As consumer expectations and the needs of businesses change, we are ensuring payments meet the evolving speed of customers’ lives.”

Beyond improving cash flow, Mastercard’s real-time payments are expected to increase the velocity of money in the South African economy, allowing funds to circulate more efficiently.

This will provide greater financial visibility for businesses, and promote economic growth. The new payment framework also aligns with the South African Reserve Bank’s (SARB) National Payments System Strategy Vision 2025, which focuses on modernising South Africa’s financial infrastructure and driving financial inclusion.

Mastercard has partnered with global payments technology provider ACI Worldwide to ensure smooth adoption of real-time transaction standards by South African acquirers.

Acquirers are financial institutions that help businesses accept card payments by facilitating the connection between merchants, payment networks (like Mastercard), and the customer’s bank.

In addition, Mastercard’s network expansion in 2023 laid the groundwork for these developments by enabling more local transaction processing.

An evolving landscape

South Africa’s payments ecosystem has evolved rapidly in recent years, but businesses have still struggled with delayed settlements that can take days to process.

Traditional bank transfers and card payments often lead to cash flow challenges, especially for SMEs that rely on timely access to funds. Real-time payments are expected to reduce delays, helping businesses operate more smoothly.

The SARB has already made strides toward financial digitisation with the launch of Payshap, an interbank real-time payments platform designed for smaller transactions. Mastercard’s new initiative supports these efforts by introducing instant card payments, moving South Africa closer to a more modern, inclusive financial system.

This initiative benefits both businesses and consumers. Mastercard plans to extend real-time capabilities to issuing banks, giving consumers instant insights into their spending behaviour.

South Africa’s adoption of this tech marks a significant milestone in the global payments world, setting the stage for other countries to follow.