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Frictionless checkout: The rise of digital wallets in SA
by Danielle Laity: Head of Stitch Express.
South Africa's ecommerce landscape is experiencing rapid growth, with digital wallets like Apple Pay and Google Pay reshaping how consumers interact with online retailers. The industry is on a significant upward trajectory, with 6.38 million new ecommerce users expected in 2024 and the market projected to exceed R400 billion in value by 2025, according to the Daily Investor. This evolution reflects not only the global trend toward online shopping but also a growing demand for simpler, more convenient checkout experiences.
Traditionally, online payments relied on card payments, which, while functional, can often involve friction. Consumers must manually input card details, expiration dates and CVV codes - a process that feels cumbersome, especially on mobile devices. This added effort frequently results in cart abandonment. According to a recent Statista survey (January 2025), 77% of South African consumers used their mobile phones to shop online, while over half indicated doing so on their laptops. With such high mobile usage, frictionless, mobile-first payment solutions are no longer optional - they’re essential.
Digital wallets address this need by integrating payment credentials directly into mobile and wearable devices. With just a tap or biometric confirmation, such as Face ID or Touch ID, consumers can complete transactions securely and seamlessly. This eliminates the need for manual entry, making the checkout process faster and reducing cart abandonment.
Stitch Express (formerly WigWag), has seen conversion rates of approximately 94% with digital wallets - far exceeding industry standards across various payment methods. Consumers have also shown a strong preference for digital wallets; after enabling them, over 30% of transaction volume shifted to wallet usage.
This also highlights the importance of a streamlined, high-converting checkout experience. Offering too many payment methods can overwhelm users, while focusing on the ones they value most leads to higher sales and a smoother overall experience.
The rapid adoption of digital wallets is driven by evolving consumer expectations. Today’s shoppers prioritise efficiency and security over outdated, repetitive processes. They want quick, one-tap solutions that save time and protect their data. While digital wallets rely on card processing infrastructure, they add a layer of convenience through encrypted transactions and eliminate the need to re-enter sensitive details across multiple platforms.
The rise of digital wallets is transforming the ecommerce landscape in South Africa, setting a new standard for seamless payments. Merchants who embrace these solutions will not only stay competitive but thrive in this evolving market.
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