Why Mobile-Led Card Innovation is a Strategic Imperative in South Africa

By Shahez Shwana, Group Product Manager at Paymentology 

Shahez Shwana, Group Product Manager at Paymentology

With more than 124 million mobile connections and smartphone penetration nearing 200%, South Africa is a mobile-led card society. For most people, the phone is not just a communication tool, it's their bank, their way to pay, and their financial command centre.

This mass adoption is accelerating a shift away from cash and traditional banking infrastructure, as mobile-led payments reshape how people spend, save, and access financial services. From spaza shop customers to online shoppers, digital wallets and mobile-first card features are setting new expectations for speed, transparency, and control.

TymeBank’s growth to over 10 million customers proves that consumers are not only willing, but ready, to manage their finances entirely through mobile channels. What began as a convenience is now shaping the future of banking, and only those adapting at pace will stay ahead.

Transitioning from Cash to Mobile Banking

This shift in expectations is happening against a backdrop of high account penetration, but low engagement,  in the formal banking system.

South Africa stands well above the global average for account ownership, about 85% of adults have a financial account, compared to roughly 76- 79% globally, close to developed market levels. At the same time, 94% of account‑holders withdraw cash monthly, and 34% cash out nearly all deposits immediately, reflecting low trust and limited use of banking beyond salary receipt. Additionally, about 52% of mobile banking sessions are used solely to check balances, suggesting accounts aren’t used for active management. 

While cash may be sufficient for everyday spending, it limits opportunities to save, spend online and access other financial services. It’s also becoming less practical in a world where digital transformation is accelerating, and showing no signs of slowing down. To truly benefit from this new mobile shift, consumers must change how they think about managing their money. Issuing banks also have a vital role to play here. Beyond rolling out technology, they must make digital wallets and mobile-first cards intuitive, transparent, and accessible, particularly for first‑time or cautious digital users.

Done right, mobile‑led banking offers greater control, flexibility, and security, more than cash ever could.

Strengthening Customer Support Builds Confidence 

But providing access alone isn’t enough, support must evolve too. In recent years, South African banks have significantly reduced their ATM networks and branch footprints, reflecting the broader shift to digital-first banking. With only 4.5% of customer interactions happening face-to-face, and 34% of younger customers reporting difficulty getting support by speaking on the phone, traditional service channels are falling short.

Mobile-first platforms can help bridge this gap. Features like in‑app support, real‑time transaction alerts, instant PIN resets, and spending controls give customers transparency and immediate help without leaving their phone.

Infrastructure as the Enabler  

Realising this potential requires the right modern infrastructure. By adopting mobile-first issuing platforms, banks and fintechs can instantly provision millions of digital wallets, deploying a best-in-class mobile experience to every customer. 

Modern cloud-first infrastructure can reduce manual workloads and operational costs for banks by integrating real-time fraud detection and automating KYC checks behind the scenes, strengthening anti-money-laundering controls and data security. Whether it’s a legacy bank reinventing its mobile experience or a new entrant launching with a digital-first vision, the right issuing architecture is foundational, especially as South Africa’s card payments are projected to reach R2.9 trillion in 2025.

A mobile-first strategy builds trust, drives adoption, and unlocks innovation. With the right platform, issuers can launch features faster, engage customers through their preferred channels, and stay one step ahead of emerging threats.

The Role of Issuer Innovation 

Delivering on the promise of mobile-led banking calls for infrastructure that empowers issuers to act quickly, securely, and at scale.

Platforms purpose-built for mobile-first card management are enabling banks and fintechs to offer the kinds of features today’s cardholders increasingly expect. Solutions like Paymentology’s PayoCard are helping issuers bring these capabilities to market faster, with built-in scalability, compliance, and cloud-first architecture that future-proofs digital offerings.

Modern card innovation is no longer optional. As mobile continues to redefine how people manage their money, the institutions that embed control, speed, and trust into every cardholder interaction will lead the next chapter of banking in South Africa.