South Africa’s digital payment landscape is undergoing a significant transformation, with projections indicating it will surpass R100 billion within the next two years.
At the forefront of this evolution is Capitec, which, through its innovative platform Capitec Pay, has introduced a game-changing approach by capping commission fees at a maximum of R7 per transaction for all payment providers. This strategic move is set to empower businesses to fully leverage the burgeoning e-commerce sector.
Capitec Pay’s New Commission Structure
Effective from 1 December 2024, Capitec Pay has implemented a commission fee structure that significantly benefits businesses, especially those handling high-value transactions.
For transactions exceeding R1,000, the commission fee is now capped at R7. This reduction translates to substantial savings for businesses in sectors such as property rentals, investment contributions, and insurance premiums.
Impact on E-commerce Growth
The 2024 World Wide Worx report, in collaboration with Mastercard, Peach Payments, and Ask Afrika, revealed that South Africa’s retail e-commerce sector expanded to R71 billion in 2023, marking a 29% increase from the previous year.
Capitec Pay’s reduced commission fees are poised to further accelerate this growth by making digital transactions more accessible and cost-effective for businesses and consumers alike.
Capitec Pay’s Performance Metrics
Since its inception in 2023, Capitec Pay has demonstrated impressive performance:
| Metric | Value |
|---|---|
| Total Transactions Processed | Over 267.3 million |
| Total Transaction Value | R56 billion |
| Transaction Conversion Rate | Over 88% |
| Client Base | Over 23 million |
The platform facilitates secure online shopping by allowing users to enter their cellphone numbers and authenticate transactions via the Capitec app, streamlining the payment process and enhancing user trust.
Enhancing Customer Experience with Instant Refunds
A standout feature of Capitec Pay is its Payout API, which enables businesses to issue instant refunds and payouts. This functionality not only boosts customer satisfaction but also fosters trust, as customers receive immediate confirmations and settlements.
The API supports real-time settlements, automated withdrawals, and instant in-app notifications, ensuring customers are promptly informed when funds are credited to their accounts.
Commitment to Security and Transparency
Capitec Pay is dedicated to providing a secure online payment environment. Payment providers undergo thorough vetting before approval to maintain the platform’s integrity.
Additionally, Capitec Pay offers comprehensive error reporting for improved transaction management and eliminates fees associated with failed payments, thereby reducing operational costs for businesses.
In line with its commitment to transparency, Capitec publishes its competitive rates on its website, enabling businesses to easily compare costs and make informed decisions regarding their payment strategies.
Conclusion
Capitec Pay’s innovative approach, characterized by capped commission fees, instant refund capabilities, and a strong emphasis on security and transparency, positions it as a pivotal player in South Africa’s digital payment landscape.
By reducing transaction costs and enhancing customer experience, Capitec Pay is set to play a crucial role in the anticipated growth of the digital payment market, empowering businesses to thrive in an increasingly digital economy.
What is the new commission fee structure of Capitec Pay?
Capitec Pay has capped its commission fees at a maximum of R7 per transaction for amounts exceeding R1,000, effective from 1 December 2024.
How does the Payout API benefit businesses and customers?
The Payout API allows businesses to issue instant refunds and payouts, leading to enhanced customer satisfaction and trust through real-time settlements and immediate notifications.
What measures does Capitec Pay implement to ensure transaction security?
Capitec Pay conducts thorough vetting of payment providers, offers comprehensive error reporting, and eliminates fees for failed payments to maintain a secure and efficient transaction environment
