Payments technology company EBANX has launched an integration with Capitec Pay, South Africa’s open banking-based payment method, for its cross-border e-commerce platform. The launch represents EBANX’s first open banking solution outside of Brazil and positions it as one of the initial global payment service providers (PSPs) offering Capitec Pay to international merchants.
The integration enables global retailers using the EBANX platform to provide the account-to-account (A2A) payment method to customers in South Africa. Capitec Pay, a product of Capitec Bank, is the first large-scale use of open banking for A2A payments in the country.
Tapping into South Africa’s digital economy
The move targets a key African market with a rapidly expanding digital economy. “South Africa stands out as one of Africa’s fastest-growing digital markets, with a digital commerce penetration rate of 73% and an expected annual growth rate of 18 per cent through 2027,” said Wiza Jalakasi, director of Africa expansion at EBANX, referencing data from Payments and Commerce Market Intelligence.
Offering Capitec Pay helps merchants to reach a potential 24 million users, representing 57 per cent of South Africa’s adult population, with 13 million of those using the mobile app. According to the World Bank, only 10 per cent of the country’s adult population has ever used a credit card. EBANX’s internal data also indicates that Capitec Pay achieves a payment conversion rate above 85 per cent, which it reports is typically higher than that of credit cards.
“By integrating Capitec Pay, we are increasing access for over 20 million South African consumers to global digital commerce and enabling merchants to tap into a tech-savvy, mobile-first audience,” Jalakasi added.
Chris Zietsman, executive head of Capitec business payments, stated: “Our partnership with EBANX marks a significant step in democratising access to global digital commerce for South Africans. Capitec Pay was built on the premise of empowering our customers with secure, convenient, and real-time payment options. With EBANX, we are not only extending this commitment to cross-border transactions but also setting a new standard for open banking in the region.”
A new model for open banking payments
Capitec Pay utilises secure APIs to initiate real-time payments directly from a customer’s bank account, bypassing the need for card details. Users authenticate transactions within their Capitec banking app, a process the company says reduces fraud risks for merchants, improves settlement times, and lowers processing costs compared to traditional card schemes. The solution also supports recurring payments through its variable recurring payments feature.
“Open banking is one of the most transformative trends in financial technology,” said Jalakasi. “Capitec Pay stands out for its consumer-first design and technical integrity. EBANX is proud to be at the forefront of bringing this innovation to global merchants. It is a major step in democratising access to digital services in South Africa and building the infrastructure for inclusive commerce.”
The integration adds to EBANX’s existing payment portfolio in South Africa, which includes Instant EFTs and card payments. The company also confirmed the Capitec Pay partnership will be a key topic at its eighth annual EBANX Payments Summit in Mexico City.
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