Standard reports digital money transfers rapid growth

Standard Banks Instant Money

Standard Banks Instant Money

JOHANNESBURG, (CAJ News) STANDARD Bank has processed more than R60 billion (US$4 billion) through its Instant Money transfer service as digital money transfers become entrenched in South Africa.

This has been processed at more than 6 500 access points across the country.

KwaZulu-Natal and the Eastern Cape are the biggest recipients of Instant Money vouchers, the company stated this week.

In addition, Standard Bank has noted a month-on-month increase of 70 000 new customers using the Instant Money service.

Transaction volumes are climbing steadily at 20 percent year on year, while transactional values are seeing a 26 percent increase year-on-year.

These spikes are also seen at month-end, during long weekends, school breaks and traditional holiday seasons, the company added.

Transaction volumes on the Standard Bank Mobile App continue to grow more than 70 percent year-on-year, with average user transaction values having increased from under R500 to over R700 in the last few years.

Nelisa Zulu, Standard Bank Head of Merchant Solutions, said the increased uptake of mobile money transfer services is due in part to the fact that South Africans, including those without formal bank accounts, are becoming comfortable with digital banking services.

She said Instant Money was particularly popular with people living in cities who wish to transfer money to family members in rural areas.

Average charges are between R9.95 and R12.50 per transaction

Money can be sent and collected at Standard Bank ATMs or other designated collection points within most communities.

“This makes it more convenient than other forms of payment in the country, which take time to be complete,” Zulu said.

Thanks to the explosive growth in smartphones, digital payments have become the norm.

In a 2019 report, the Independent Communications Authority of South Africa (ICASA) shows that smartphone penetration has doubled over the past two years and has come to sit at nearly 80 percent.

– CAJ News