Expert: Consumers in South Africa confident in online payments

As new technology continues to innovate the payments industry, online payment systems are earning more trust from consumers on a worldwide basis.

An expert in the South African payments market sees opportunity for growth in the country’s ecommerce sector. In a recent interview with IT Web, Trevor Ndobela, managing director of Quarphix Communications, said technological advances and new legislation have helped South African consumers become more confident when they process online payments.

“The recently passed Consumer Protection Act has provided increased security and peace of mind for consumers, which has allowed for more online trade to take place,” Ndobela told IT Web.

According to Ndobela, these adoption rates can only grow. Currently, just 6 million of the country’s 49 million residents have internet access. As the economy picks up and more become connected, the South African market for online payment gateways can only grow.

“Ecommerce cannot thrive without access to a computer and an affordable broadband network. With almost half of the South African population living below the poverty line and 24 percent of it unemployed, the price of new computers is beyond the reach of most people,” he says.

Research supports Ndobela’s assertions. According to MasterCard, slightly more than half - 51 percent - of internet-connected South Africans have shopped online.