Payments provider EBANX has integrated Capitec Pay, Capitec Bank’s open-banking account-to-account (A2A) payment method, into its cross-border e-commerce platform, marking EBANX’s first open-banking rollout outside Brazil and making Capitec Pay available to international merchants through EBANX’s stack.
Why this matters for merchants and shoppers
This integration matters for three reasons. First, it gives global retailers a local A2A option that bypasses cards and reduces friction. Second, it taps into South Africa’s fast-growing digital market: EBANX cites market data showing high digital commerce penetration and strong projected growth in the coming years. Finally, Capitec Pay’s in-app authentication and real-time settlement can reduce fraud risk and lower processing costs compared with traditional card rails.
How does Capitec Pay work?
Capitec Pay uses secure APIs to initiate payments directly from a customer’s bank account. Customers authenticate transactions inside the Capitec mobile app, meaning merchants receive consent-backed payments without capturing card details. In practice, this streamlines checkout and supports recurring payments via variable recurring payments.
The market opportunity in South Africa
South Africa’s e-commerce market is expanding rapidly, offering significant upside for merchants that accept locally preferred payment methods. EBANX highlights that Capitec Pay reaches millions of users through the Capitec app, and internal data suggests conversion rates above 85% for the method, typically higher than card conversions in the region. Moreover, relatively low credit-card penetration (around 10% of adults) underscores the importance of account-based payments in the market.
Benefits for cross-border merchants
- Higher conversion: smoother A2A checkout can reduce cart abandonment.
- Lower fraud & chargebacks: app-based authentication cuts disputed transactions.
- Faster settlement: real-time payments improve cash flow versus slower card settlements.
Operational considerations
Merchants should check whether their checkout UX supports redirection to a banking app, how refunds and recurring flows will be handled, and how settlement and reconciliation integrate with their ERP or payment stack. In addition, regional regulation and customer support expectations differ from other markets, so plan for localized operations and clear communications.
What this means for the payments landscape
Open banking A2A is maturing beyond pilot stages in several markets, and Capitec Pay represents a notable large-scale implementation in South Africa. Consequently, global PSPs that onboard local A2A methods stand to gain market share and stronger local conversion – especially in mobile-first economies.
Conclusion
EBANX’s Capitec Pay integration is a practical step toward more inclusive, cardless cross-border commerce in South Africa. For international merchants targeting South African consumers, adopting Capitec Pay via EBANX offers a way to boost conversion, lower costs, and align with local payment preferences – all of which matter in a rapidly growing digital market.
