Long seen as a nice-to-have, value-added services (VAS) are now a vital part of South Africa’s payments ecosystem. New research by payments software company Electrum estimates the VAS market to be worth almost R500-billion per year.

In a November 2024 survey of economically active South Africans who manage personal or household payments, the company found that domestic money transfers made up a third of the annual R498-billion spend. This was followed by bill payments, prepaid airtime and data, prepaid electricity and betting vouchers.

The survey was conducted across all nine provinces, with fieldwork in both urban and peri-urban areas. Respondents were selected using quotas based on province, race, age and gender.

Electrum says the findings highlight the growing importance of VAS in everyday financial behaviours.

• Electrum is a next-generation payments software company and trusted partner to leading banks and retailers.