Factors that impact the adoption of real-time electronic payments in South Africa

Abstract

The continuous advancement of digital technologies has heightened expectations for cost-effective and convenient service delivery, driving modernisation efforts in financial systems worldwide. In South Africa, the push to develop the national payments system has intensified, with a strong focus on reducing cash usage and fostering the adoption of real-time electronic payments. This qualitative study investigates the factors impacting the adoption of real-time electronic payments in South Africa through semi-structured interviews with experts from the payments industry, regulatory bodies, and financial institutions. Thematic analysis was employed to analyse the data, with the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Technology-Organisation- Environment (TOE) models serving as theoretical frameworks. Findings reveal a complex interplay of drivers and barriers shaping adoption. Key enablers include the need for a more assertive regulatory approach, reduced transaction and infrastructure costs, an improved user experience, and greater fintech participation. Conversely, challenges such as entrenched cash reliance, fragmented stakeholder collaboration, and the absence of widespread, seamless payment solutions hinder adoption. A critical insight from this study is the necessity of replicating cash’s convenience and ubiquity to drive consumer and merchant adoption. The interconnected nature of these factors underscores the importance of industry-wide collaboration to enact meaningful change. By identifying these critical considerations, this research contributes to the ongoing discourse on digital payment transformation in emerging markets. The findings offer practical recommendations for regulators, financial service providers, and fintechs to accelerate the adoption of real-time electronic payments and promote a more inclusive, efficient financial ecosystem in South Africa.