The SARB has stated its ambitions to make the country less dependent on cash, with digital payments seen as safer and more cost-effective.<\/p>\n\n\n\n
This is proving to be relatively successful, with growth in transactions in South African now being led by Real-Time Clearing, DebiCheck, and PayShap, PayInc noted.<\/p>\n\n\n\n
These details are all contained in the new PayInc Economic Index, which carries a new methodology from the previous BankservAfrica Index, but still tracks the overall health of South Africa’s transaction economy.<\/p>\n\n\n\n
PayInc cleared a record 177.8 million transactions in August, slightly above 177.5 million in July, and up 9.4% year-on-year. By value, electronic transactions eased to R1.351 trillion from R1.405 trillion in July.<\/p>\n\n\n\n
Meanwhile, cash demand stayed firm, rising 4.4% month-on-month in real terms, according to PayInc\u2019s Integrated Cash Management System (ICMS) data.<\/p>\n\n\n\n
Notably, the index shows that South Africa economy continues to show surprising resilience in the face of mounting pressure points, with economic activity holding firm.<\/p>\n\n\n\n
For August 2025 the index showed a fourth month of consecutive gains, showing clear signs of economic resilience amid persistent headwinds.<\/p>\n\n\n\n
The index level reached 102.8 in August 2025, up 1.3% from July\u2019s level. Year-on-year, the index is up 3.7%, indicating that the Q2 uptick has carried into Q3 despite uncertainty and weak confidence. <\/p>\n\n\n\n
The better-than-expected GDP outcome for Q2 at 0.8% q\/q also confirmed this narrative of resilience, the group said.<\/p>\n\n\n\n
Things are looking up<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Elize-Kruger-1024x576.jpg\")
<\/a>Independent Economist, Elize Kruger<\/figcaption><\/figure>\n\n\n\nStats SA reported GDP growth of 0.8% quarter-on-quarter for Q2, up from a flat 0.1% in Q1. The reading surprised on the upside, following forecast expectations of 0.5% growth for the quarter.<\/p>\n\n\n\n
\u201cThe improvement, as reflected in the PayInc Economic Index over the past few months, is surprising given the domestic and global challenges this year,\u201d said Elize Kruger, Independent Economist.<\/p>\n\n\n\n
Higher import tariffs, inefficient rail and port infrastructure, pressure on key trading partners, and cheaper imports squeezing local firms have created a highly challenging operating environment. <\/p>\n\n\n\n
This is reflected in subdued sentiment with the RMB\/BER Business Confidence Index falling to 39 in Q3, below its long-term average of 42, indicating that just over 60% of firms are dissatisfied with current conditions.<\/p>\n\n\n\n
While the economy may be treading water, retail remains strong with real sales rising by 3.8% in the first half of 2025, beating the broader economy.<\/p>\n\n\n\n
According to Kruger, the economy is being supported by lower inflation\u2014set to average at 3.4% in 2025, compared to 4.4% in 2024\u2014giving the South African Reserve Bank scope to cut interest rates by 75 bps year-to-date in 2025, easing pressure on households and firms. <\/p>\n\n\n\n
With average pay rises above 5%, 2025 should deliver a second year of real salary gains, supporting consumer spend.<\/p>\n\n\n\n
In line with PayInc Economic Index\u2019s August uptick, other timely indicators point to firming momentum.<\/p>\n\n\n\n
Naamsa revealed strong performance with total vehicle sales rising by 18.7% year-on-year in August, with year-to-date sales up by 14.5% compared to a year earlier, while new car sales grew by 22.5% year-on-year and 21.3% ahead on an annual basis. <\/p>\n\n\n\n
The S&P Global South Africa Purchasing Managers\u2019 Index held just above expansion at 50.1 in July, while the seasonally adjusted Absa Purchasing Managers\u2019 Index slipped to 49.5, underscoring ongoing pressure in manufacturing.<\/p>\n\n\n\n
Overall, while some sectors continue to perform well, the economy remains subdued and the outlook for the remainder of 2025 is uncertain. <\/p>\n\n\n\n
Broad-based job cuts reflect the underlying strain and will likely place downward pressure on the economic activity in the final months of 2025. <\/p>\n\n\n\n
\u201cEven with the real GDP growth for 2025 stabilising at 1% in 2025 from 0.6% in 2024, the economy is still lagging behind population growth, leading to living standards stagnating for South Africans,\u201d said Kruger.<\/p>\n\n\n\n
Economists at Nedbank are optimistic that the growth momentum will continue into Q3 and Q4, lifting overall GDP forecasts for the year to 1.2% (from 1% before) and averaging 1.5% over the next three years.<\/p>\n","protected":false},"excerpt":{"rendered":"
Despite the growing adoption of digital payments, South Africans are still leaning heavily into cash, with demand picking up in August. <\/p>\n","protected":false},"author":10,"featured_media":834669,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[1740,23495],"class_list":["post-837360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-economy","tag-payinc"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=837360"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837360\/revisions"}],"predecessor-version":[{"id":837364,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837360\/revisions\/837364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/834669"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=837360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=837360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=837360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a>Stats SA reported GDP growth of 0.8% quarter-on-quarter for Q2, up from a flat 0.1% in Q1. The reading surprised on the upside, following forecast expectations of 0.5% growth for the quarter.<\/p>\n\n\n\n
\u201cThe improvement, as reflected in the PayInc Economic Index over the past few months, is surprising given the domestic and global challenges this year,\u201d said Elize Kruger, Independent Economist.<\/p>\n\n\n\n
Higher import tariffs, inefficient rail and port infrastructure, pressure on key trading partners, and cheaper imports squeezing local firms have created a highly challenging operating environment. <\/p>\n\n\n\n
This is reflected in subdued sentiment with the RMB\/BER Business Confidence Index falling to 39 in Q3, below its long-term average of 42, indicating that just over 60% of firms are dissatisfied with current conditions.<\/p>\n\n\n\n
While the economy may be treading water, retail remains strong with real sales rising by 3.8% in the first half of 2025, beating the broader economy.<\/p>\n\n\n\n
According to Kruger, the economy is being supported by lower inflation\u2014set to average at 3.4% in 2025, compared to 4.4% in 2024\u2014giving the South African Reserve Bank scope to cut interest rates by 75 bps year-to-date in 2025, easing pressure on households and firms. <\/p>\n\n\n\n
With average pay rises above 5%, 2025 should deliver a second year of real salary gains, supporting consumer spend.<\/p>\n\n\n\n
In line with PayInc Economic Index\u2019s August uptick, other timely indicators point to firming momentum.<\/p>\n\n\n\n
Naamsa revealed strong performance with total vehicle sales rising by 18.7% year-on-year in August, with year-to-date sales up by 14.5% compared to a year earlier, while new car sales grew by 22.5% year-on-year and 21.3% ahead on an annual basis. <\/p>\n\n\n\n
The S&P Global South Africa Purchasing Managers\u2019 Index held just above expansion at 50.1 in July, while the seasonally adjusted Absa Purchasing Managers\u2019 Index slipped to 49.5, underscoring ongoing pressure in manufacturing.<\/p>\n\n\n\n
Overall, while some sectors continue to perform well, the economy remains subdued and the outlook for the remainder of 2025 is uncertain. <\/p>\n\n\n\n
Broad-based job cuts reflect the underlying strain and will likely place downward pressure on the economic activity in the final months of 2025. <\/p>\n\n\n\n
\u201cEven with the real GDP growth for 2025 stabilising at 1% in 2025 from 0.6% in 2024, the economy is still lagging behind population growth, leading to living standards stagnating for South Africans,\u201d said Kruger.<\/p>\n\n\n\n
Economists at Nedbank are optimistic that the growth momentum will continue into Q3 and Q4, lifting overall GDP forecasts for the year to 1.2% (from 1% before) and averaging 1.5% over the next three years.<\/p>\n","protected":false},"excerpt":{"rendered":"
Despite the growing adoption of digital payments, South Africans are still leaning heavily into cash, with demand picking up in August. <\/p>\n","protected":false},"author":10,"featured_media":834669,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[1740,23495],"class_list":["post-837360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-economy","tag-payinc"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=837360"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837360\/revisions"}],"predecessor-version":[{"id":837364,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837360\/revisions\/837364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/834669"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=837360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=837360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=837360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}