South Africa Mobile Wallet Market: Digital Payment Adoption, User Growth & Growth Outlook

According to IMARC Group's latest research publication, South Africa mobile wallet market size reached USD 1.37 Billion in 2024. The market is projected to reach USD 4.86 Billion by 2033, exhibiting a growth rate (CAGR) of 13.51% during 2025-2033.

How AI is Reshaping the Future of South Africa Mobile Wallet Market

• When AI is integrated into mobile wallets, banks and payment providers are able to instantly detect unusual activity and minimize risk without interrupting their customers' everyday transactions. Major South African banks have already begun applying the technology, with more than half of payments institutions employing AI, improving the safety of the millions who use wallets daily.
• Chatbots and AI virtual assistants in mobile wallets enable 24/7 customer support, answer questions in different languages, increase customer satisfaction and reduce cost for fintechs, payment companies, banks and digital wallets.
• AI analyzes transaction history and serves personalized savings and loan recommendations via wallets, allowing unbanked or underbanked South Africans to access financial services, thereby increasing usage and user engagement.

Get In-Depth 2026 Industry Insights & Projections

South Africa Mobile Wallet Market Trends & Drivers:

The South African mobile wallet industry has been fuelled by increasing smartphone penetration and inexpensive data. Smartphones are the preferred device of almost all internet users in South Africa, leading consumers to use mobile-first solutions in their daily payment needs. This allows payments to take place in everyday situations in stores when using tap to pay or when shopping online. Companies that provide payment services at home and abroad have developed simple applications to ease fast transactions and bill payments. In the urban and semi-urban areas, with increased connectivity, more people are using digital wallets as their principal payment mode instead of cash and cards, which has resulted in increased digital engagement in commerce and services.

Increased contactless payments and secure payment options have influenced mobile wallet adoption. With the introduction of biometric features, tokenisation, and real-time authentication to mobile wallets, consumers have been more willing to use these for lower and higher ticket purchases. Furthermore, retailers and e-commerce brands have recognized that a fast-onboarding and streamlined checkout process are appealing to consumers with limited time available. Not surprisingly, banks and fintechs are extremely interested in such walled gardens. As wallets are increasingly becoming the hubs for broader financial services platforms, mobile wallets stressing security and speed take root in consumer lifestyles. Functionally, mobile wallets are ubiquitous and used by all demographic groups, driving the decline of other payment options.

With the growth of e-commerce and financial inclusion initiatives, mobile wallets further gain popularity as online companies look for reliable digital payments platforms to ease cross-border sales and payments. Mobile wallets can reach unbanked and underbanked customers who lack formal banking accounts, allowing users to transact using only a mobile number that requires limited infrastructure. Partnerships with formal financial services firms and other innovators are increasing access to new complementary products and services such as remittances, micro-savings and payment services. These partnerships drive inclusive growth by enabling more people to participate in the digital economy and by establishing mobile wallets as multi-purpose economic and payment tools.

South Africa Mobile Wallet Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Proximity
• Remote

Application Insights:

• Retail
• Hospitality and Transportation
• Telecommunication
• Healthcare
• Others

Regional Insights:

• Gauteng
• KwaZulu-Natal
• Western Cape
• Mpumalanga
• Eastern Cape
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in South Africa Mobile Wallet Market

• February 2026: OM Bank plans to introduce support for Apple Wallet and Google Wallet in the first half of the year, following its public launch in late 2025, reflecting the rapid rise in tap-to-pay usage and making digital wallet integration a baseline expectation even for mass-market banks.
• 2026: Digital wallet adoption surges, with 70% of South Africans using them for daily payments, up sharply from 46% the previous year, driven by consumer shifts toward contactless and mobile-led transactions across banks and fintech platforms.
• 2025-2026: Major banks report explosive growth in digital wallet activity, including Capitec's 159% increase in transaction volumes and 103% rise in users, alongside FNB's 45% volume increase between 2024 and 2025, with transaction values reaching R98 billion, underscoring the move away from physical cards.
• 2026: Integration of real-time payment rails like PayShap expands interoperability between bank accounts and mobile wallets, enabling instant transfers using mobile numbers or IDs, enhancing convenience for in-app payments, bill settlements, and seamless fund movement in the evolving payments ecosystem.
• 2025-2026: Partnerships advance mobile wallet features, such as MTN MoMo's extended collaboration with Mastercard allowing debit/credit card top-ups via secure gateways, boosting accessibility and supporting greater financial inclusion through telecom-linked digital financial services.

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