Papama Mninzi is a Marketing Intern at Network International and holds an Advanced Diploma in Journalism. She grew up in Khayelitsha, where she experienced first‑hand how everyday payments shape township life. Her background gives her a grounded understanding of the challenges entrepreneurs face and the role safer, more accessible payment tools can play. In this guest blog, she offers her perspective on how payment behaviours are shifting in her community.
Townships remain some of the most active business communities in South Africa. Cash still dominates daily trade, although a gradual shift toward digital payments is taking place. This shift is not only driven by technology trends. It is deeply influenced by safety concerns, trust in the system and the challenges that come with limited access to formal banking.
Conversations I had with Khayelitsha entrepreneurs show a common theme. Their payment choices are shaped by what keeps them safe, what feels familiar and what helps them run their businesses without added risk.
Why do many township merchants still avoid digital payments?
Many business owners in Khayelitsha avoid speaking openly about payments. Extortion is a constant threat and “protection fees” are often collected monthly. Violence and harassment are real consequences for those who cannot pay.
Because of this, merchants tend to fall into three groups:
- Cash‑only operators
- Merchants who use cash and digital tools
- Fully digital businesses
Each group has its own motivations and challenges.
Cash‑only merchants
A large portion of township businesses are run by undocumented foreign nationals. Many operate in haircare, food, nail services or sell household items within their communities. They are unable to open South African bank accounts, which means they cannot accept digital payments or use card machines.
As a result, cash is not a preference. It is their only option.
This places them at higher risk. They cannot report extortion or crime because of fears around arrest or deportation. They remain vulnerable and heavily dependent on physical money.
Multichannel merchants
These business owners accept cash but also use digital tools like EFTs and instant money transfers. A tailor in Khayelitsha explained that he accepts cash only for smaller amounts. Anything above a certain limit is paid digitally. This helps him limit the cash on hand while still making it easy for customers to pay.
Digital payments have kept his business running safely and have become part of how he protects his income.
Fully digital merchants
These merchants accept card payments, EFTs, QR payments and mobile wallets. Safety and convenience often lead them to choose digital tools over cash.
Even so, going fully digital brings its own challenges. Many face unreliable connectivity, high data costs or limited access to digital skills. Despite these obstacles, this group continues to show how digital tools can improve safety and efficiency in township trading.
The future: Township‑ready payments
The township economy is powerful, creative and incredibly adaptive. Payment methods need to meet people where they are not where we assume they should be. Whether it’s safer alternatives to cash, simpler ways for undocumented merchants to receive payments, or tap‑and‑go tools that work even with shaky connectivity…one thing is clear:
Township commerce is evolving and payment innovation must evolve with it.
Payfast’s offerings can help township businesses reduce risks linked to extortion, distrust and heavy cash reliance by shifting more transactions away from physical money. Tools like POS devices, tap‑to‑pay and QR payments lower the amount of cash on hand, while Immediate Payouts move earnings into a bank account within minutes, reducing exposure after trading. Combined with the Payfast app for real‑time oversight, these solutions help build trust, reduce vulnerability and minimise cash‑related risks.
Remember, it’s not only about technology. It’s about trust. Safety. Inclusion. And enabling business owners to thrive without fear.
