Breaking the habit: the shift from traditional to more innovative payment methods Innovation is increasingly changing the way consumers engage with the world. Yet how we transact remains stagnant, with many in South Africa continuing to make use of cash as a preferred payment method, despite having access to more effective, safer methods. Research by MasterCard Advisors’ Cashless Journey study showed that cash accounts for over 90% of all consumer transactions in many inception countries, under which South Africa is categorised, while only 6% of consumer payment transactions are done using non-cash methods. Thomas Pays, CEO and co-founder of i-Pay –an online payment gateway, says that while online payments may be more common and understood in developed countries, South Africa is increasingly making inroads for more cashlessness behaviour for a number of reasons. “Rising consumer awareness around the high costs, risks and effort required when using cash and credit cards to transact i...

Thomas Pays Given South Africa’s current economic outlook - following two ratings agencies recently downgrading the country to ‘junk status’ and a third potentially pending - local businesses and their cash flows will be squeezed now more than ever. Thomas Pays, CEO and co-founder of i-Pay - a trusted online payment gateway for both buyers and merchants that allows instant EFT payments - says, that in difficult economic times, businesses should be investigating ways to boost sales and profits, and, one such way, is by offering innovative, cost-effective and simple fintech payment solutions for customers. “A healthy cash flow is critical to a business’ success and survival, and, in South Africa’s current business landscape, the collection of payment needs to be simplified to be most effective. “For example, a company processing R1 million a month in payments may pay 3% to a credit card company to manage these payments. However by using an alternative payment solution, such as elec...