Table of Contents
Key Points
- Capitec caps commission fees at $0.37 per transaction over $53.15.
- The platform has processed $2.97 billion in payments since 2023.
- Features like instant refunds and security measures enhance customer trust.
Capitec Bank, under the leadership of CEO Gerrie Fourie, is making significant strides in South Africa's digital payments market by capping Capitec Pay commission fees at a maximum of R7 ($0.37) per transaction for amounts above R1,000 ($53.15). This bold initiative, implemented on December 1, 2024, underscores Capitec’s dedication to fostering the growth of businesses in the rapidly expanding e-commerce sector, which is projected to exceed R100 billion ($5.31 billion) by 2026.
Founded in 2001, Capitec has emerged as a dominant force in South African banking, renowned for its client-centric approach. Under the leadership of Chairman Michiel Le Roux, the bank has successfully captured a substantial portion of the nation’s financial market, with over 23 million clients.
Revolutionizing payment systems for businesses
Capitec Pay, the bank’s online, card-free payment platform, has processed over 267.3 million transactions worth R56 billion ($2.97 billion) since its launch in 2023. The platform boasts an impressive conversion rate of more than 88 percent, reflecting its strong transactional trust among users.
Jerome Passmore, Capitec’s Head of Enterprise Payment Services, emphasized the importance of lowering commission fees, noting that reducing digital transaction costs allows businesses to save on expenses such as property rent, investment, and insurance premiums. This, in turn, leads to healthier bottom lines for businesses.
The introduction of the Payout API is another key feature, enabling instant refunds and real-time settlements. The platform offers automatic debiting, application notifications, and enhanced security features, ensuring seamless transactions for both consumers and merchants. Additionally, Capitec Pay has implemented stringent payment provider scrutiny to enhance security, making it one of the safest online payment solutions in South Africa.
Moreover, Capitec’s platform improves financial management for businesses by eliminating failed payment fees and providing detailed error reports.
Driving transparency and affordability
Capitec’s approach to price transparency stands out in the competitive landscape. The bank publishes its rates online, allowing businesses to use the information when planning their payment strategies.
In conclusion, Passmore remarked, “Low cost, secure platform, and prompt refunds make Capitec Pay increasingly popular among firms looking to streamline payment processes and enhance consumer satisfaction.”
This focus on easy access, cost-efficiency, and secure payment solutions places Capitec at the forefront of South Africa's rapidly growing e-commerce market.
