Major threat to Visa and Mastercard in South Africa

 ·6 Jun 2025

Major payment platforms Visa and Mastercard face serious global competition from cryptocurrency, including in South Africa. 

This is according to Wiehann Olivier, Partner and FinTech & Digital Assets Lead, and Dinesh Gurlal, Director and IT Assurance at Forvis Mazars South Africa.

They explained that in South Africa and many other places around the world, people and businesses are increasingly using digital money, like stablecoins, instead of traditional cards and cash.

Olivier and Gurlal noted that crypto payments have now gone from being used only by tech experts to something that regular people and businesses use daily. 

“The crypto payment landscape has crossed the chasm. It’s no longer just for early adopters, it’s part of mainstream commerce,” they said. 

This was highlighted in a report by crypto exchange CEX.IO, which showed that, in 2024, stablecoin transfers globally hit $27.6 trillion, surpassing Visa and Mastercard’s combined transaction volume by 7.68%. 

Stablecoins are a type of cryptocurrency tied to the US dollar, which helps keep their value stable.

In response to this growth, Visa and Mastercard have started offering crypto services. Visa is also making moves, piloting stablecoin services in six Latin American countries.

Mastercard partnered with MoonPay to bring stablecoin payments to 150 million merchants, building on earlier deals with firms like OKX, Nuvei, and Circle. 

“This means acceptance of blockchain-based digital assets as a legitimate means of exchange is not only growing; it has already hit the mainstream,” said Olivier and Gurlal. Many big companies already accept crypto as payment. BitPay, a company that helps businesses accept crypto, works with 250,000 companies worldwide. 

Big names like Microsoft, Burger King, adidas, AT&T, and PayPal already accept cryptocurrencies for everyday purchases.

Interestingly, Olivier and Gurlal noted that cryptocurrency’s adoption and usage rates as a means of exchange are growing fastest outside the developed world.

The 2024 Global Adoption Index by Chainalysis found that the Central and Southern Asia and Oceania (CSAO) region led the world in crypto adoption, with seven of the top 20 countries in that area. 

South Africa is prime location for crypto adoption 

In Africa, South Africa is fast becoming a hotspot of crypto retail usage. Decentralised finance services grew significantly in the region in 2024, highlighting the shift in where financial innovation is taking place.

Olivier and Gurlal explained that two events helped push cryptocurrency for shopping in South Africa. 

First, Pick n Pay, one of the country’s biggest supermarket chains, started accepting Bitcoin payments at more than 2,200 stores through a partnership with MoneyBadger. 

Second, a local crypto exchange partnered with Zapper, a mobile payment app, to let people use crypto at even more stores.

“These developments mark a significant step in South Africa’s embrace of digital assets,” they said. “It’s helping bridge the gap between cryptocurrency and everyday commerce.”

Stats from MoneyBadger showed that South Africa ranks 14th globally in cryptocurrency payment acceptance. 12% of the population owns crypto, one of the highest per capita rates in the world. 

The government is also getting involved. In 2022, the Financial Sector Conduct Authority (FSCA) officially said that crypto is a financial product, which helped give businesses more confidence to use it.

Olivier and Gurlal also noted that technology like the Bitcoin Lightning Network further increases crypto’s value proposition. 

It allows for instant, secure, low-cost transactions, often faster and cheaper than traditional bank or credit card payments. 

“Retailers benefit from significantly lower merchant fees and faster clearance,” they explained. “These transactions can happen instantly, enabling daily cash flow, not monthly, which has major implications for large businesses.”

Even though the technology and interest are growing, the experts said one of the biggest challenges is that most people who own crypto aren’t spending it.

Despite 5.8 million South Africans owning cryptocurrency, with the number expected to rise to 6.05 million by the end of 2024, most people are holding rather than spending. 

According to SARS and Statista, nearly $388.3 million (R6.9 billion) in crypto assets remain unspent. Olivier and Gurlal noted that consumers largely view crypto as an investment or store of value, not a currency.

 “Although crypto was initially created for peer-to-peer payments, it has evolved into a speculative asset class,” they said.

To shift this mindset, Olivier and Gurlal said more retailers must start accepting crypto more broadly. “Mass adoption can’t happen if everyone waits for someone else to move first.” 

“Widespread acceptance by big-name physical and e-commerce retailers is essential to drive the network effect and increase usage.”

The experts also highlighted that the infrastructure to support this shift already exists in South Africa. 

While some businesses may hesitate due to concerns about ERP integration or price volatility, Olivier and Gurlal believe these challenges are manageable.

“The industry has the skills and expertise to make crypto payment integration seamless,” they said. 

“Businesses can also get guidance on how to hedge against volatility, whether they want crypto converted instantly to fiat or retained on the balance sheet.”

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