As 2025 stumbles on amid global upheaval and "Trumpanomics" and its many implications, Freddie Prinsloo, Chief Innovation Officer at Amplifin, talks trends and tribulations to look out for in the payments sector.
Payments have come a long way since manual credit card machines with carbon paper and post-dating cheques to avoid bouncing. In a relatively short time, new technologies and systems have redefined how businesses and consumers interact financially.
One of the most significant recent developments is the move towards real-time payments. Systems like PayShap have taken off rapidly, powered by instant clearing and settlement frameworks that immediately gratify consumers and merchants equally. Historically, the gap between clearing and settlement has been a significant limitation of traditional EFT payments. Marred by inefficiencies and risks like high instances of fake proof of payment scams, EFTs are giving way to growing trust in faster, friendlier payment options.
But innovation always comes with challenges. Adoption rates often lag as complacent users hesitate to adopt unfamiliar systems. Payment confirmation systems like DebiCheck have adopted a slow-burn approach, with design and implementation beginning years before rollout, and adoption remains a work in progress. However, more ubiquitous smartphone usage and an increasing consumer familiarity with banking apps are beginning to speed up buy-in.
Cash or card?
Consumer behaviour is the secret element in understanding the science of successful payment platforms. South Africa is still a largely cash-dependent society. According to recent research, 73% of point-of-sale transactions in South Africa are still conducted in cash, a figure that has only marginally declined from 2018. Amplifin data supports this. When loans are disbursed through the company, more than 73% of borrowers withdraw their funds as cash rather than using their debit cards for transactions.
This reliance on cash highlights a mix of convenience, cultural habits and accessibility challenges in rural or underdeveloped areas. However, as the ecosystem evolves and new payment mechanisms prove their convenience and security, we expect to see a gradual shift towards digital transactions. The key lies in making these alternatives accessible and trusted, especially for underserved populations.
The non-negotiables of security and compliance
As technology becomes more intelligent, so do scammers, who cheat the system by gaining unauthorised access through mechanisms like instant EFTs or unwitting consumers sharing their online banking credentials with third-party providers—a practice fraught with risks. While secure, regulated channels give consumers a measure of control and transparency, eliminating the risks associated with third parties is challenging when smooth-talking scammers often use low-tech options like telephonic "security checks" to steal information.
As payment systems evolve, security and compliance are front and centre. Real-time payments, while convenient, demand extensive security measures. Consumers must be confident that their transactions are protected, and businesses must ensure they comply with evolving regulations.
Going beyond payments
Technologies like artificial intelligence (AI) and machine learning (ML) will significantly shape payment integration. These technologies are already invaluable in fraud prevention and trend analysis, helping businesses and banks detect and respond to threats more effectively.
Small and medium enterprises (SMEs) have much to gain from these advancements. Real-time payments can streamline operations and improve cash flow, allowing businesses to reinvest funds more quickly. These changes also come with challenges, particularly for cash-dependent SMEs that need to adapt to more transparent and regulated environments.
Increased traceability and data richness are transforming how transactions are recorded and reported. For example, modern payment mechanisms now include comprehensive metadata—from payer and payee details to transaction contexts—making it easier to comply with regulations around money laundering and financial transparency. While this can initially feel burdensome for SMEs, it ultimately builds a more trustworthy and efficient financial ecosystem.
Buyer education in focus
Successful payment integration is built on trust and good governance, transparently on display to keep consumers confident. Consumers need to trust the systems they’re using, and businesses need to trust that their transactions are secure and compliant. Education is crucial. Awareness is essential, whether it’s teaching consumers about the risks of sharing credentials or helping merchants understand the benefits of adopting digital payment methods.
The future of payment integration is exciting and full of potential. As the playing field evolves, we must focus on trust, security, transparency and inclusivity. That's the only way we can ensure that the innovations we’re developing are technologically advanced, practical and safe.
