Debit use explodes in South Africa

Debit use explodes in South Africa
Tags: Bank / Credit Union, Debit / Credit, Other, Retail / Off-Premises, Underbanked / Unbanked
May 31, 2006

ePaynews: South Africa's debit-card issuance grew by 23 percent to 30 percent in 2003 and 2004 from previous years, the result of efforts to reach the unbanked. Unbanked consumers are estimated to comprise 48 percent of South Africa's population. Visa International reported that 2005 purchase volumes on South African-issued debit cards reached $4.1 billion, up from $2.6 billion in 2004. Total debit transaction volumes also grew by 58 percent, totaling 92.6 million transactions.

Visa and South Africa's post office, Postbank, announced a deal earlier this month to provide electron debit cards that may be used as a tool for budgeting and financial management.