Africa-Press – South-Africa. South Africa’s economy is facing challenges, but signs of resilience continue to emerge.
This is according to analysis by the PayInc Economic Index – a powerful real-time measure of South Africa’s economic performance that helps investors, policymakers, and global institutions make more informed decisions.
Developed in 2012 when PayInc was still known as BankservAfrica, the index leverages PayInc’s role as the country’s sole Payment Clearing House System Operator (PSO) for all interbank electronic Payment transactions below R5 million – including EFTs, Real-Time Clearing payments, PayShap, and DebiCheck.
This ensures that PayInc has 100% visibility into South Africa’s daily interbank digital transactional flows, and allows PayInc to provide a unique and timely indicator of consumer and business activity.
Importantly, the PayInc Economic Index has a strong correlation to South Africa’s official GDP figures – as of the most recent report, 97.1% – while being available months earlier.
“Because we process the full spectrum of interbank payments, the index gives an unparalleled view of the economy,” explained Shergeran Naidoo, Head of Stakeholder Engagements at PayInc.
“It correlates closely with GDP but provides insights within weeks, not months.”
The power of the index
The index has become a trusted tool – not only in South Africa but internationally.
Global organisations like the IMF, Macrobond, and Bloomberg all use the data from the PayInc Economic Index to assess South Africa’s economic performance, while local policymakers rely on it to inform critical decisions.
A great example of this was during the COVID-19 pandemic, when policymakers leaned heavily on PayInc and its data, including the index, when making important decisions to keep the economy running optimally.
Beyond tracking the economy, PayInc uses the insights from its index to shape its own strategy – particularly in driving digital adoption.
Initiatives like PayShap were designed to displace cash transactions, making payments faster, cheaper, and more inclusive.
“The golden thread in our work is enabling financial inclusion by leveraging our modernised digital payments system,” said Naidoo.
“We are intentional about bridging the gap between cash-reliant communities and the digital economy. The index allows us to measure that progress in real time.”
Recent insights
The most recent version of the index – for August 2025 – showed some promising signs.
The index rose for the fourth consecutive month, reaching 102.8 – a 1.3% increase from July and 3.7% up year-on-year.
The number of transactions cleared hit a record 177.8 million, even as the total nominal value moderated slightly to R1.351 trillion.
The rise in payment volumes, coupled with a declining average transaction ticket size, reflects that a greater number of electronic transactions are taking place for lower value amounts, indicating that more consumers are adopting digital channels for every-day payments. This correlates to the StatsSA data regarding the second quarter 0.8% uptick in which retail was one of the standout sectors supporting the economy.
Furthermore, consumer purchasing power is in a better place than has historically been the case. While inflation has averaged 3.4% in 2025 – down from 4.4% in 2024 – take home pay is expected to increase by over 5% this year.
This reflects a “real” increase in take-home pay for 2025 – the second year this has happened.
However, corporate capital expenditure remains muted, reflecting a cautious business environment amid global trade pressures and local infrastructure challenges, which will hopefully be addressed through the infrastructure renewal programme in the form of the government-led Operation Vulindlela.
A refreshed index for the future
To remain relevant, PayInc regularly refreshes the index with updated methodologies and concepts.
Recently, the base year for the report was reset to December 2024, and for the first time, cash demand is being monitored through PayInc’s Integrated Cash Management System (ICMS).
“Our responsibility is to keep the index current and credible,” said Naidoo.
“For investors, it will remain a vital tool for understanding economic resilience, consumer trends, and the opportunities created by South Africa’s ongoing digital transformation.”
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