Report: Consumer payment preferences – e-commerce trends in 2025
Summary: This article introduces a 2025-focused report on consumer payments and e-commerce trends. It highlights how preferences, checkout, and conversion are evolving.
We surveyed more than 2000 South African consumers across a diverse set of demographics, income levels and locations. The findings, detailed in this report, provide an in-depth view of South Africa’s evolving e-commerce payments landscape, highlight where meaningful changes have occurred over the past year and outline the most significant opportunities for merchants to optimise conversion, customer experience and growth.
What we found: consumer payments trends in e-commerce
South Africa remains a deeply mobile-first economy. More than 90% of internet users access the internet via mobile devices. As of January 2024, there were ~45 million active internet users, representing 74.7% of the population. According to Statista, approximately 77% of e-commerce purchases in South Africa are now made on mobile devices, reinforcing the critical importance of mobile-first optimization for merchants.
At the heart of this mobile-first reality is the evolution of the way South African consumers prefer to pay. When we published our first consumer payments report in early 2023, much of the infrastructure now driving this transformation, including PayShap, Capitec Pay, Apple Pay, Google Pay and other digital wallets, was still emerging. At that time, card payments were leading by a wide margin in popularity, while Pay by bank had only just begun gaining traction, with 36% consumer preference compared to card payments at 49%.
Today, a clear shift is underway, as newer and more convenient payment options begin to erode the long-standing dominance of cards as the default online payment method. South African consumers increasingly demand speed, flexibility and safety at checkout, with convenience, security and transparency remaining key drivers of trust and purchasing decisions.
Across all our research, shoppers consistently emphasize the importance of a fast, simple, and secure payment process when deciding where to shop. Merchants who meet these expectations are seeing measurable improvements in conversion, average order value and customer satisfaction.
Key insights:
- Capitec Pay is the 2nd largest alternative payment method in 2025 by preference, with 42% of respondents indicating they used this for the first time in the last year.
- Amongst the top factors that lead to a perceived negative checkout experience are unexpected or additional fees at checkout as well as a poor refund experience
- 56% of customers indicated they would choose one service provider over another if the platform offers fast and seamless payments
- One-click methods including Apple Pay and Google Pay are gaining adoption more quickly for online purchases than most other methods have before - largely due to the seamless, convenient and secure experience they offer
- Buy Now Pay Later is finding a niche for higher-value retail purchases
FAQs
What is the Consumer Payment Preferences and E-commerce Trends 2025 report?
It’s a forward-looking report analysing how consumer payment behaviour and e-commerce trends are evolving in 2025, based on data and market insights.
What key payment trends does the report highlight?
The report highlights increased adoption of digital wallets, faster checkout expectations, growing use of instant payments, and higher demand for secure, frictionless experiences.
How are consumer payment preferences changing in 2025?
Consumers are prioritising speed, convenience, and trust, favouring payment methods that reduce checkout steps and offer strong security signals.
Why are payment preferences important for e-commerce businesses?
Aligning with consumer payment preferences helps businesses improve conversion rates, reduce cart abandonment, and increase customer satisfaction.
What does the report reveal about checkout experiences?
The report shows that streamlined, customised checkout experiences are becoming a key differentiator for e-commerce performance and growth.
Who should read this report?
E-commerce leaders, product teams, fintechs, retailers, and decision-makers planning payment and checkout strategies for 2025 will benefit most.
Download the full report for more
