Online payment system Visa Checkout is gaining traction in SA following its launch in October last year.
In 2013, Visa launched Visa Checkout, an online payment system that removes the need to share card details with retailers.
The Visa Checkout service allows users to enter all their personal details and card information, then use a single username and password to make purchases from online retailers.
"Visa Checkout is relatively new to the South African market. Launched in October 2016, it is steadily gaining popularity with merchants and online shoppers, with some of our merchants noting an increase in sales since adopting Visa Checkout," says Geraldine Mitchley, senior director for emerging payments and innovation at Visa Sub-Saharan Africa.
"South Africa still has a long way to go; only 4% to 6% of card transactions are e-commerce transactions, less for other countries in Africa, some under 1%. This means there is a huge growth opportunity off this low base."
Mitchley points out the 2016 e-commerce report states 58% of South Africans shop online weekly or monthly, which shows a growing trust of online purchases among South African online shoppers.
"South Africans are embracing online shopping; not only does it save them time, but exposes them to a variety of products. As the growth of online and mobile shopping continues to rise, so do customer expectations for better shopping experiences. Customers want a way to save purchasing preferences and be able to use options beyond traditional checkout, which often requires filling in numerous form fields, leading to desktop abandonment.
"There is increased usage of service apps such as Uber, UberEats, Netflix, etc, and more and more every day services are being made available via m-commerce, such as ordering pizza, buying airtime, paying utility bills and shopping for fashion at retailers like Zando and Spree.
"We are also seeing a higher level of comfort from banks that have opened up debit cards to e-commerce as they now have the correct fraud management processes in place."
Mitchley explains that an online payment system like Visa Checkout enables consumers to shop quickly and with ease. "Visa Checkout works in tandem with today's fast-paced consumer lifestyle, taking the stress out of always having to insert banking details, which can be a tedious exercise. Online shoppers expect fast and effortless service and this is why Visa Checkout is working so well in South Africa."
She says global merchants using Visa Checkout have seen significant shifts in e-commerce behaviour, driving higher spend and increased credit card usage, contributing to a higher average checkout and repeat usage.
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