Mastercard launches real-time card payments in South Africa

This development is part of Mastercard's broader strategy to improve payment speed and security through product innovations, network improvements, and strategic partnerships.

Merchants in South Africa accepting Mastercard payments will now experience faster payouts, improving cash flow management and providing quicker access to funds. This is expected to increase financial visibility, release capital, and contribute to economic growth by accelerating the circulation of money.

Mastercard’s initiative includes rolling out new standards and solutions to accelerate card transaction processing, introducing real-time clearing and more frequent settlement cycles. This move aligns with the South African Reserve Bank’s National Payments System Strategy Vision 2025, which emphasises modernising payment systems to support financial inclusion. Mastercard had already set the foundation for these changes in 2023 by enlarging its network to enable local transaction processing.

Additionally, Mastercard has partnered with ACI Worldwide, a global payments technology provider, to facilitate the adoption of real-time transaction processing standards by acquirers in South Africa. This collaboration aims to improve liquidity and ensure faster access to funds for local businesses and consumers.

South Africa’s payments landscape

South Africa's payments landscape has been evolving rapidly in recent years, driven by the need to modernise its financial systems and meet the demands of a growing digital economy. However, many businesses, particularly SMEs, still face challenges with delayed settlement times and inefficient cash flow management. Traditional payment methods, such as bank transfers and card payments, often take several days to process, limiting businesses' ability to access funds promptly. This can hinder day-to-day operations and slow down growth, as many SMEs rely on consistent cash flow to cover operational costs and reinvest in their businesses.

In response to these challenges, the South African Reserve Bank (SARB) has introduced the National Payments System Strategy Vision 2025, aimed at transforming the country's payments ecosystem. This strategy emphasises the importance of real-time payment systems, financial inclusion, and the adoption of cutting-edge technologies to improve the speed, security, and accessibility of transactions. As part of this modernisation effort, the SARB seeks to improve interoperability across banking platforms, promote digital payment adoption, and ensure that both businesses and consumers can benefit from faster, more reliable payment solutions.