Capitec Pay commission fees capped at R7 to all payment providers

South Africa’s digital payment market is projected to exceed R100 billion within the next two years, and Capitec is leading the charge to help businesses harness this growth.

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Capitec, through its online card-free payment platform Capitec Pay, has reduced commission fees to all payment providers while enhancing customer satisfaction for businesses with instant refunds powered by the new Capitec Pay Payout API.

Slashed commission fees can help businesses grow

Capitec Pay’s commission fee has been reduced to a maximum of R7 per transaction over R1 000 for all payment providers. Businesses can now save even more on high-value transactions such as property rentals, investment contributions, and insurance premiums.

Capitec officially implemented these reduced commission fees on 1 December 2024, making digital payments more affordable.

According to the 2024 World Wide Worx report, conducted in partnership with Mastercard, Peach Payments and Ask Afrika, the retail e-commerce sector grew to R71 billion in 2023.

This represents a remarkable 29% increase from 2022.

Jerome Passmore, Head of Enterprise Payment Services, explains that since its launch in 2023, Capitec Pay has processed over 267.3 million transactions, with a total value of R56 billion.

The platform enables secure online shopping by simply entering a cellphone number and authenticating it using the Capitec app.

With over 23 million clients and growing, Capitec’s bold steps ensure businesses can capitalise on the rapid growth of e-commerce.

Passmore explains, “The platform maintains a transaction conversion rate of over 88%, significantly higher than instant EFT payments due to the trust it has won with Capitec’s retail client base.”

“By reducing the cost of digital transactions, we can support more online businesses and increase the adoption of secure payment methods.”

“We understand that payment costs significantly impact business’ bottom lines, and we’re committed to continuously reviewing our pricing model to identify opportunities for further reductions.”

Realtime refunds and a security-led approach

One of Capitec Pay’s new standout features is the Payout API, which enables businesses to issue refunds and payouts that clear instantly, boosting customer satisfaction and trust.

This API-first approach supports realtime settlements, automated withdrawals, and instant in-app notifications informing customers when money arrives in their accounts.

Capitec Pay’s cutting-edge technology helps businesses revolutionise their digital payment processes and improve customer experience.

Capitec Pay is also dedicated to creating one of South Africa’s safest online payment environments. Before approval, payment providers undergo thorough vetting to ensure the platform’s integrity.

Additionally, it also features rich error reporting for better transaction management and eliminates failed payment fees, reducing operational costs.

This combination of security and efficiency helps businesses manage their financial flow more effectively.

Capitec maintains its fundamental principle of transparency by publishing its competitive rates on its website.

This makes it easier for businesses to compare costs and make informed decisions about their payment strategies.

Passmore concludes, “Our platform’s transparent pricing model, enhanced security features, and efficient refund capabilities make it an attractive option for businesses looking to optimise their payment operations while providing a secure and convenient customer experience.”