Capitec Pay Revolutionizes Digital Transactions with Commission Cap and Instant Payouts

As South Africa's digital payment scene thrives, projected to surpass R100 billion by 2025, Capitec is at the forefront, ensuring businesses can maximize this growth. With the introduction of a capped commission fee and the rollout of the innovative Payout API on its Capitec Pay platform, the bank is setting a new standard in the industry.

Effective from December 1, 2024, Capitec's initiative to cap the commission fees at R7 for transactions exceeding R1,000 is a game-changer for businesses dealing in high-stake transactions such as property rentals and insurance premiums. This strategic move not only makes digital payments more economical but also boosts the transaction conversion rate significantly.

Capitec Pay, since its launch in 2023, has swiftly processed over 267.3 million transactions, worth around R56 billion. The platform has achieved remarkable success, reflected in its impressive transaction conversion rate of over 88%, a stark contrast to other instant EFT payments. This is largely attributed to the trust it has garnished amongst Capitec's extensive client base of over 23 million users.

Moreover, the newly introduced Capitec Pay Payout API enhances the platform's attractiveness by facilitating instant refunds and payouts. This not only augments customer satisfaction but also solidifies trust, crucial in the competitive e-commerce environment. The API-first approach underscores Capitec's commitment to real-time solutions, including instant settlements and automated withdrawals, further enriched with instant notifications for consumers.

Security is not compromised for efficiency; Capitec Pay ensures each payment provider passes through rigorous vetting before integration, maintaining a secure transaction environment. The reduction of operational costs is also prioritized, evident from the elimination of failed payment fees and the provision of comprehensive error reports to streamline transaction management.

Capitec's transparency remains central to its operation, with clear communication of competitive rates available on its website. This openness aids businesses in making well-informed decisions that align with their financial strategies and operational goals.

With robust security measures, efficient refund capabilities, and a transparent pricing model, Capitec Pay is not just a digital payment platform but a comprehensive financial tool that helps businesses optimize their operations while ensuring convenience and security for their customers.

Jerome Passmore, Head of Enterprise Payment Services at Capitec, encapsulates the vision of Capitec Pay, stating, "By continuously refining our pricing model and enhancing the platform's capabilities, we are poised to support an increasing number of online businesses and promote the adoption of safe, cost-effective digital transaction methods."