Digital wallets and biometrics gain ground in South Africa

Digital payments adoption in South Africa is accelerating as consumers increasingly embrace technologies such as digital wallets, biometric authentication and artificial intelligence (AI) in everyday transactions. According to a recent consumer research survey by Visa, payment preferences in the country are evolving as users seek faster, more secure and technology-driven payment experiences.

The research suggests that while physical payment cards remain the most preferred and convenient payment method among South African consumers, there is growing openness toward emerging payment technologies when they combine convenience with security.

Biometric authentication has already gained widespread traction. Around 66% of respondents reported authorising payments using biometric verification such as fingerprint or facial recognition, reflecting increasing comfort with technology-enabled security measures.

Digital wallets are also gaining momentum in the market. Nearly 39% of surveyed consumers identified digital wallets as the fastest payment method, while more than one-third said they would recommend them to others. The findings suggest that mobile-first payment experiences are gradually becoming embedded in everyday transactions.

The survey also points to rising interest in alternative digital assets for cross-border transactions. Among respondents who have previously sent money abroad, 57% said they would consider using stablecoins as a payment method, highlighting growing interest in faster and potentially lower-cost international transfers.

Artificial intelligence is also becoming part of the consumer payments journey. Approximately 63% of respondents said they have used AI tools for shopping-related tasks such as product research, finding gift ideas or interacting with customer service. However, despite increasing use of AI-enabled tools, many consumers still value human interaction, with 63% saying they prefer speaking with a human customer service representative rather than an AI system.

Security remains a central concern shaping payment choices. According to the survey, 88% of respondents consider security “extremely important” when selecting a payment method. While consumers view banks (76%) and payment networks (71%) as the primary guardians against fraud, many also acknowledge their own role in safeguarding transactions. Around 67% of respondents believe consumers themselves are highly responsible for detecting payment fraud and security threats.

Consumers are also taking proactive measures to protect their financial data. Nearly half of respondents reported enabling two-factor authentication, while about 40% regularly change their passwords to enhance account security.

Despite growing acceptance of AI in commerce and payments, concerns about data use remain. Around 60% of respondents said they are worried about how their personal data is handled by AI-powered shopping and payment tools. At the same time, 42% expressed confidence that they would be able to identify AI-driven payment scams.

“While traditional payment methods continue to play an important role – with physical cards still regarded as the most preferred and convenient way to pay – South Africans are showing that trust and technology can go hand in hand, with consumers increasingly willing to adopt new payment solutions when they deliver both convenience and peace of mind,” says Lineshree Moodley, country manager at Visa South Africa.

The survey reflects broader shifts across global payments markets, where financial institutions and technology providers are accelerating investments in secure digital payment infrastructure, AI-driven commerce tools and alternative payment methods to meet changing consumer expectations.