The feature allows users to buy digital gift cards valued between $10 and $500, giving recipients a simple way to shop from the app’s growing catalogue. 

Cards are sent by email and can only be redeemed by users with a TikTok account. Once claimed, the value is added straight to the recipient’s TikTok balance, ready to spend.

TikTok Shop is working to prove it can move beyond impulse buys and creator-led sales into mainstream online retail. In adding gift cards, it is stepping directly into territory long dominated by Amazon and eBay, where gifting is a huge driver of repeat spending.

What stands out is how social the process is designed to be. Buyers can choose from animated designs built for birthdays, weddings, thank-you messages and other occasions. Recipients can reply with a note of thanks or send a gift card back. TikTok says this is only the start.

A spokesperson said future updates will enhance personalisation, including the option to attach recorded or uploaded video messages. The company also pointed to an “interactive unboxing that captures their reaction in real-time,” though details were not disclosed.

For now, the TikTok Shop digital gift cards are only available for purchase in the U.S., with no timeline announced for other markets.

The rollout follows a strong showing during the 2025 Black Friday and Cyber Monday period, when TikTok Shop recorded more than $500 million in U.S. sales over four days. 

That figure represents almost 50% growth compared with the same period in 2024. Brands such as Disney and Samsung took part in the holiday push, a sign that TikTok Shop is attracting more established retailers, not just small merchants and influencers.

At the same time, the platform is widening its product mix. Alongside everyday goods, TikTok Shop has moved into luxury fashion and resale items, a clear attempt to increase average order values and appeal to older, wealthier shoppers.

Yet all of this growth sits under a cloud of uncertainty. TikTok’s U.S. operations are being restructured into a new entity, TikTok USDS Joint Venture LLC, which will be majority owned by American investors including Oracle, Silver Lake and UAE-based MGX. 

ByteDance is expected to retain roughly 20% ownership, while U.S. partners take control of data security and oversight of the algorithm.

The deal must close by January 22, 2026, to comply with U.S. law. If it fails, TikTok faces a nationwide ban, a scenario that would put TikTok Shop’s U.S. vision at risk just as they begin to gain traction.

The company’s platform, which serves over two million users monthly, aims to reduce the typical 79-day purchase decision cycle to under a single day.

Shopping online has become a complex, time-consuming task. Consumers bounce between tabs, sift through over-optimised product listings, and struggle to separate real reviews from marketing spin. 

Onton’s founders saw the stress firsthand. “We are building the future of decision making online,” said Zach Hudson, CEO and co-founder of Onton. “People deserve a way to shop that feels intelligent, transparent, and effortless. Onton is designed to remove the friction that slows everyone down and to give users absolute confidence in their choices.”

The startup’s platform combines a novel neurosymbolic AI foundation with a new interface, enabling users to search using natural language, images, or both. It consolidates information from across the web into single, trustworthy product listings. 

Users can also leverage creative tools like Imagine and Surfaces to visualise and instantly find items they dream up. Onton reports a conversion rate three times higher than the industry average, with over 20% of users engaging weekly.

Onton’s journey began when co-founders Alex and Zach recognised a similar problem which was spending countless hours hunting for products. 

Alex spent 30 hours searching for a mid-century gray couch, while Zach had been researching trust in online reviews. After meeting at a YC Startup School event, they combined their expertise, launched early versions of the product, and scaled monthly users from one million with four employees at the start of 2025 to ten today, with five more hires expected soon.

The current funding round, led by Footwork and joined by Liquid 2, Parable Ventures, and 43, brings Onton’s total capital to approximately $10 million. The investment will support product expansion, team growth, and international scaling.

Consumers are demanding smarter search tools. Unverified online content, disappearing trusted product recommendations, and brands locking information behind walled gardens have created new pressures. 

Onton was built as an intelligent assistant rather than a simple search engine, helping users cut through the noise and make fast, confident decisions.

Users report tangible benefits. One described finding quality products aligned with his interests without spending hours researching. Another confirmed that Onton reassured her items were unique, allowing her to purchase with confidence rather than continuing endless browsing. Heavy users are conducting over 100 searches and product generations monthly.

Onton plans to expand beyond home décor and furniture into apparel and electronics, guided by existing user demand in online shopping. The company will continue refining its knowledge graph, enhancing its data pipeline, and preparing a personalised search experience adaptable to individual needs. 

Its ultimate goal is to become a global decision-making tool for any product in any category, anywhere in the world.

• Discovery: TikTok’s algorithm gives African brands viral exposure, while Instagram’s reach is flattening.
• Conversion: Instagram still converts better per customer; TikTok is on top-of-funnel reach.
• Payment Friction: TikTok’s checkout is inconsistent across African markets; Instagram relies on external sites.
• Trust & Logistics: Delivery delays and refund issues still affect trust in both, but brands report fewer challenges from Instagram-driven sales.

When it comes to eCommerce, we could say every brand is pushing, but not everyone’s cart rolls straight.

In 2025, over 500 million Africans are projected to shop online, but most of those purchases still happen through social media posts, not dedicated e-commerce stores. 

TikTok and Instagram are now the continent’s foremost markets. But let’s look beyond viral reach and revenue, which one actually closes the sale?

Nigeria specifically, has become the testing ground for social commerce. According to DataReportal, Instagram had 9.90 million users in Nigeria in early 2025, representing about 4.2% of the population. Meanwhile, TikTok had an estimated 37.4 million users aged 18+ in Nigeria early 2025, roughly 30% of adults. 

Instagram’s reach is declining in Nigeria (down ~20% year-on-year), while TikTok is expanding. That alone shows a shift in where brands might focus.

This means that platform reach is important, but sales depend on much more, including checkout flows, trust, logistics, and discovery mechanics. I set out to test five key questions:

Hypotheses

1. Which platform converts followers into paying customers more reliably in Africa?
2. Which platform delivers higher average order value (AOV) and repeat purchase rate?
3. How do discovery algorithms and content formats affect buyer intent?
4. Which platform offers less friction at checkout/payment/delivery?
5. In the African market context, which is a better target for ad spend and ROI?

Platform features & mechanics

Discovery & organic reach
TikTok’s feed mechanics (“For You Page”) prioritise virality, short videos can reach thousands of users quickly. In Kenya, for example, TikTok ad reach grew by 42.7% between 2024 and 2025. Instagram, however, is showing decline in Nigeria: a 20.2% drop in potential ad reach year-on-year.

This means TikTok gives better odds for organic discovery of a product if your content hits. Instagram still gives reach, but the ceiling is lower, particularly for newer brands.

Product catalogue, storefront & listing mechanics

Instagram Shops allow brands to tag products in posts and run a “Shop” tab as part of their profile. It is integrated with Meta’s Commerce Manager. However, Meta has announced changes to checkout flows which may impact how brands handle fulfilment. 

TikTok Shop provides in-app product pages, live shopping and creator affiliate integration. That said: in Africa the full commerce layer is patchy. For example, according to analysis, TikTok Shop in Nigeria lacks unified mobile wallet integration, in-app checkout remains inconsistent, and there are logistics challenges.

So while TikTok offers the outline for a full commerce funnel, real-world readiness in many African markets is still a limitation.

Checkout & payments (friction) 

On Instagram: many brands in Africa still redirect from Instagram to an external website, which adds steps and drop-off risk. On TikTok: the approach is seamless checkout. 

However, in Nigeria local challenges like fragmented mobile money systems, low average order values (under $20), and weak refund/charge-back infrastructure, hit TikTok.

The result is that brands on TikTok may gain discovery but still have friction converting to payment. On Instagram, the payment model may be more stable, but you trade off some discovery and virality.

Ads & promotion mechanics (paid performance)
Paid ads on Instagram are mature; brands know how to optimise them. On TikTok, ad formats are newer, creative demands are higher (video must hook fast), and scaling spend usually drops return on ad spend (ROAS). One advertiser reported ROAS dropping from 10× to below 2× when scaling TikTok spend. 

Thus: TikTok shop may give high ROAS at low spend (if content works), but scaling remains tricky; Instagram offers more predictable paid behaviour, but with less surprise upside.

Creator & influencer ecosystem
Tick any brand box and you’ll find the creator economy of Africa is booming. Many small brands turn to TikTok creators to drive sales. However brand-creator commerce models still suffer from limitations: limited payout options, regional eligibility issues, and tracking problems. 

Instagram still offers stable influencer collaborations, but at higher cost and less immediate conversion.

Logistics, delivery & returns
Logistics in many African markets is challenging. The World Bank Logistics Performance Index places Nigeria 88th globally. That means delivery delays, cost increases, and return friction. 

For commerce platforms that promise quick delivery or live-shopping impulses (like TikTok), these infrastructure gaps matter. Instagram-driven sales sometimes redirect to brands’ website or to offline pickup models, slower but more predictable.

Trust, fraud & safety
Buyer trust is essential. On platforms where checkout is embedded, buyer protection and refund policies impact how comfortable people are with purchase. 

TikTok still has service gaps in Africa on refunds/charge-backs. Instagram brands usually have to rely on external fulfilment but benefit from Meta’s brand association and existing user familiarity. 

For African brands, Instagram Shops currently provide more predictability of sales, albeit at a lower growth ceiling. TikTok Shop offers greater upside, especially if your content catches, but also greater risk, especially around payment and fulfilment.

Practical playbook for African brands

Here is what I advise based on brand size, product type and infrastructure readiness:

• Micro-brand (cash-strapped, low inventory): Use TikTok for discovery, produce highly native content, use local creators, accept low AOV but aim for volume. Ensure you have a reliable fulfilment partner or localised dispatch strategy.
• Medium brand (some inventory, higher AOV): Use Instagram Shops for steady performance; invest in paid ads + retargeting; use TikTok for top-of-funnel awareness but send conversion through Instagram or website.
• Export-focussed brand: Use TikTok to tap international viral potential, but ensure checkout/payment/fulfilment are export-ready. Use Instagram and your site to manage repeat customers and higher order value purchases.
• Way forward (90-day roadmap):
  1. Audit your checkout and fulfilment set-up (payment, shipping, returns).
  2. Run a small TikTok test campaign (budget ~5–10% of monthly marketing) tracking CAC, ROAS, AOV, repeat rate.
  3. Parallel: optimise Instagram Shop tags + retargeting ad flow.
  4. Compare metrics after 30, 60, 90 days. Make decision: focus where ROI is stronger, with platform backup.

Policy, payments & infrastructure implications

There’s a bigger story here. Meta (Instagram’s parent) announced changes to its in-app checkout policy which will impact how African brands operate Instagram Shops. For TikTok, payment rail fragmentation and logistics delays are key constraints. 

In markets like Nigeria where delivery infrastructure is weaker, impulse live-commerce still runs into friction. Brands must understand that platform mechanics are only part of the equation, external factors (payments, shipping, refunds) matter just as much.

Risks, limitations & open questions

• Platform data transparency is limited: public GMV figures for TikTok Shop in Africa are sparse.
• Rapid changes: platform policies, country-eligibility of features, and logistic networks evolve fast, data is date-sensitive.
• Infrastructure gaps: rural markets in Africa still have slower internet, higher shipping costs, which may bias results toward urban centres.

If I were to sum this up: TikTok Shop gives the bigger chance for African brands to break out and scale, especially if you’ve got creative content and basic infrastructure in place. 

But for most brands right now, Instagram Shops brings the safer path, with a more stable ecosystem, predictable performance and higher order values.

My recommendation: Do not pick one and ignore the other. Use TikTok for discovery and volume, and Instagram as your conversion engine, unless you have the logistics and payment setup to fully exploit live commerce for your online shop at scale.

For the next 90 days: test both Instagram and TikTok Shop, measure CAC, conversion, repeat purchase and scale what works. In Africa’s social commerce space of 2025, the brands who win will be the ones who combine creative reach with flawless execution.

This is one of the biggest steps yet in integrating digital payments with conversational technology.

Under this new arrangement, PayPal will adopt OpenAI’s Agentic Commerce Protocol (ACP) to power Instant Checkout, a feature that allows users to confirm orders and complete transactions inside ChatGPT without switching platforms. 

Beginning in 2026, PayPal’s extensive merchant network will be connected to OpenAI’s ecosystem, opening ChatGPT’s marketplace to tens of millions of businesses globally.

“Hundreds of millions of people turn to ChatGPT each week for help with everyday tasks, including finding products they love, and over 400 million use PayPal to shop,” said Alex Chriss, president and CEO of PayPal. 

“By partnering with OpenAI and adopting the Agentic Commerce Protocol, PayPal will power payments and commerce experiences that help people go from chat to checkout in just a few taps for our joint customer bases.”

The integration will allow customers to pay using their PayPal wallets, providing access to multiple funding sources, including cards, bank accounts, and balances, while ensuring the company’s signature buyer and seller protections. 

PayPal will also handle payment processing for card transactions through its delegated payments API, streamlining every stage of the transaction process.

For merchants, the new system offers a direct route into ChatGPT’s massive user base. Small businesses and large retailers alike will see their product catalogues, spanning categories such as apparel, beauty, home improvement, and electronics, become searchable and purchasable within ChatGPT. 

PayPal’s ACP server will handle everything behind the scenes, from merchant routing to payment validation, removing the need for individual integrations.

Beyond commerce, PayPal is expanding its internal use of OpenAI’s technologies. The company plans to deploy ChatGPT Enterprise for its 24,000 employees, use Codex to support engineering tasks, and integrate OpenAI’s APIs across its operations. 

These tools are expected to enhance product innovation and improve customer service efficiency.

The partnership arrives at a time when AI-driven shopping assistants are changing online retail. Such systems can analyse user preferences, compare prices, and execute purchases autonomously, revealing the focus on agentic commerce, where digital assistants play an important role in buying decisions.

PayPal’s move is a turnaround strategy under Chriss, who has steered the company towards profitability and innovation after years of post-pandemic slowdown.

With this integration, PayPal aims to strengthen its presence “anywhere and everywhere that consumers want to pay,” as Chriss told analysts. 

The company also trimmed its after-tax loss by 28% to $16.3 million, compared to $22.5 million in the same period last year.

According to the statement, Jumia’s operating loss fell to $16.5 million from $20.2 million, while loss before income tax also declined by 28% to $16.5 million.

Gross profit rose 11% year-on-year to $23.9 million, from $21.6 million. Adjusted EBITDA loss dropped by 17% to $13.6 million, from $16.3 million in Q2 2024.

However, net cash used in operating activities increased to $12.7 million, up from $8.4 million in the same quarter last year.

Key performance indicators for Jumia’s physical goods business showed strong improvements. Orders rose by 18% year-on-year, driven by better product assortment across major categories. 

Quarterly active customers grew by 13%, signalling improved customer retention. In Nigeria, orders increased by 25%, while Gross Merchandise Value (GMV) surged 36% year-on-year.

Commenting on the results, Francis Dufay, CEO of Jumia Group, said:

“Our second-quarter results demonstrate continued momentum in our core consumer business, with robust usage growth and strong engagement across markets. We believe year-over-year trends are reflecting the underlying strength of our platform. We also delivered a meaningful improvement in cash burn quarter-over-quarter, driven by growth and a positive impact from working capital.

“This reinforces our confidence in reaching our strategic goal to break even on a loss-before-income-tax basis in the fourth quarter of 2026 and achieving full-year profitability in 2027. Based on current trends, we are raising our full-year 2025 guidance and long-term profitability targets.”

Fulfilment expenses increased by 16% to $10.8 million from $9.3 million, while sales and advertising expenses declined by 6% to $4.2 million. Technology and content expenses edged up to $9.2 million from $8.7 million year-on-year.

Although Jumia previously operated at a loss year after year, the company is showing consistent progress towards profitability. The Q2 2025 loss of $16.3 million marks a significant improvement, aligning with its roadmap to achieve profitability by 2027.

While you enjoy a seamless shopping experience, your online activities are being tracked, often without your knowledge.

According to Stepan Solovev, CEO and co-founder of Soax, “Most internet users remain blissfully unaware of the vast data trails they leave behind them.”

Online shopping has improved convenience but has taken a darker edge with increased tracking. The online retailers log everything from your browsing habits down to a record of all of your purchases. This opens up huge privacy and security issues that customers are oblivious to.

Are You Being Tracked?

Data shows that 90% of online shoppers are being tracked. Research into customer online shopping behavior for 2020 trends has indicated that as many as 90% of online shoppers are tracked without knowledge.

Data is tracked from various sources, including cookies, web trackers, and third-party partnerships. This information is used for targeted advertising and personalized recommendations and is sometimes resold to other businesses.

To give it a number, over 3 billion people bought something online in 2020, with around 2.7 billion of their shopping habits tracked in detail.

This tracking behind your back includes everything from your search queries to how much time you spend on a website, through which one can draw an elaborate picture of consumer behavior patterns.

How Online Shopping Can Make Hackers Track You

With this convenience of e-shopping comes a great deal of cybersecurity risk. Usually, hackers take advantage of vulnerabilities in various e-commerce platforms and trace users to steal sensitive information.

Aura’s data has revealed that cybercriminals use different ways, which include but are not limited to the following:

• Phishing: Bogus emails or pop-up advertisements deceive users into delivering personal information or clicking on links to download malware. These phishing schemes are so legitimate that even aware shoppers will find it hard to tell them apart from actual communications.

• Malware and Spyware: When hackers embed malicious software within seemingly harmless downloads, keyloggers capture passwords, and tracking software may capture browsing history. How?

• Man-in-the-Middle Attack: When making purchases on unsecured networks, hackers can intercept data transmissions. It primarily happens through open public Wi-Fi, whereby attackers place themselves between the user and the website and then capture all data transmitted.

• Data Breaches: Even genuine e-commerce websites may be vulnerable to data breaches. By using security loopholes, hackers gain access to user databases, acquiring sensitive information such as credit card information and home addresses.

Key Takeaways

Online tracking is everywhere, and it is estimated that nearly 90% of users are unaware of personal data collection.

The more invisible the surveillance keeps going, the more one opens the door for a hacker. It is essential to make people aware of the online tracking mechanism and what tactics cybercrimes use to maintain digital security.

Like a ray of hope, Poddin emerges to address these concerns, aiming to rebuild trust in online transactions in Nigeria.

The Distrust in Digital Shopping:

Online scams have plagued the internet for years, casting a dark cloud over the world of e-commerce.

Nigeria, unfortunately, hasn’t been spared from this global issue. Deceptive practices, fake websites, and phishing emails have all contributed to a decline in trust when it comes to online purchases.

The disconnection between what’s promised and what’s delivered has left consumers feeling cheated and disheartened.

The Deceptive World of Online Sellers:

It’s a familiar scenario – you stumble upon a product online, complete with enticing images and captivating descriptions, only to receive something far from what you expected. Online sellers often employ misleading tactics, making grand promises they can’t keep.

This deceptive behaviour not only affects individuals but also tarnishes the reputation of e-commerce as a whole. The consequences are clear: buyers are left feeling scammed, and trust continues to erode.

The Need for Secure Transactions:

Even on platforms designed for secure transactions, doubts persist. Traditional online marketplaces, like Fiverr, rely on escrow payments, where buyers pay upfront, and funds are held until the service is delivered. While widely accepted, this system can leave both buyers and sellers vulnerable to disputes and potential scams.

Poddin: A Beacon of Trust in the Digital Landscape:

Amidst these mounting challenges, Poddin enters the Nigerian business scene as a potential game-changer.

This innovative platform not only offers a rich array of features but also introduces a revolutionary payment system.

By ensuring that seller wallets are credited only after the buyer confirms delivery, Poddin significantly reduces the risk of fraud, instilling trust and confidence in the digital marketplace.

Poddin’s Reach and Impact:

Poddin caters to a diverse audience, including online shoppers, independent business owners, small and medium-sized enterprises (SMEs), service providers, and content creators. Its versatility positions it as a valuable addition to Nigeria’s digital landscape, providing tailored solutions for various user groups.

The Poddin App: Redefining Convenience and Trust

What sets Poddin apart is its recently launched app, packed with an array of features designed to enhance the online shopping experience.

Users can now upload and sell physical goods/products, engage in seamless chats with customers and friends, make purchases, and share products within chat conversations. Managing orders and invoices directly in chats, sending invoices for payments, and discovering people and brands within your current location have never been easier.

But that’s not all; Poddin lets you post disappearing Poddin Moments in the form of photos and text, buy or sell products within these moments, import WhatsApp chats to the app, and track orders, income, and inventory for business accounts.

It even automatically separates customer chats from general chats and allows you to fund your wallet for payments, withdraw money from the wallet into your bank account, and credit sellers after the buyer confirms delivery. Immediate refunds for canceled orders, public rating of orders and sellers, and the ability to save products for later make Poddin a comprehensive and secure online shopping destination.

A Beacon of Hope in a Digital Age:

In a world where online scams have shaken trust to its core, Poddin shines as a beacon of hope for Nigerians seeking secure and reliable online transactions.

“With its innovative features and unwavering commitment to the safety of both buyers and sellers, Poddin has the potential to reshape the Nigerian business ecosystem,” the founder emphasizes. As it gains momentum, it could become the preferred choice for individuals and businesses alike, facilitating seamless and secure online transactions nationwide. The founder, Samuel Cousin, concludes, “Trust is on the rise, thanks to Poddin.”

Online shopping is on the increase in South Africa, with a recent Deloitte study noting that up to 70% of the country is making purchases in this way.

With this rise in online payments, the risk of exposing personal and confidential information, such as banking login details, to third parties has also risen sharply. It’s therefore no surprise that 86% of people are concerned about data privacy and security.

Worryingly, criminals can now more effortlessly steal personal data when payments are made, due to the use of screen scraping, where sensitive customer banking information is taken during transactions.

This has even set off alarm bells at the Intergovernmental Fintech Working Group (IFWG) and the South African Reserve Bank (SARB). The IFWG has stressed the importance of taking greater action in the online payment space, citing that it is critical to balance consumer protection and innovation.

The risks can no longer be ignored, which is why open banking has emerged as a solution – one that must be considered by all financial institutions in the country.

The Source of the Scamming

In South Africa, consumers are heavily reliant on their mobile phones to shop online. However, in many cases consumers need their physical card on hand or have to switch between their banking app and the merchant’s site to enter their card details manually.

Additionally, some online stores don’t accept card payments due to the unaffordability of card commission fees and only allow Instant EFT payments, which force consumers to share sensitive bank account login details when paying online. Herein lies the risk.

This process exposes consumers to screen scraping which can allow harvesting of personal data.

Additionally, some instant EFT providers share customer information, increasing the concerns expressed by industry bodies.

Screen scraping businesses have full access to your internet banking and can mine personal information, including banking statements, debit orders, and salary.

The usage terms and conditions of some well-known screen-scraping businesses even mention that the personal data they harvest can be shared or sold. Making matters worse is that this harvested data is stored in the cloud and most likely in other countries.

Sharing internet banking login information is the equivalent of walking into a store, then handing your card and pin to a well-dressed stranger, allowing them to leave with it to withdraw cash on your behalf and return with the money, so you can pay the store – trusting that this is simply part of the payment process.

Compounding the concerns is Social Engineering, yet another risk factor consumers face, as they are manipulating and influenced by savvy hackers to hand over sensitive information through the phone, email and social media to gain illegal access. 

A Solution Open to All

To help address the need for secure EFT payments, Capitec enlisted Pay@, a leading payments aggregator in South Africa, to ensure enhanced security and convenience would be at the core of the Capitec Pay offering.

This collaboration led to the launch of Capitec Pay.  The solution makes full use of the alternative to screen scraping, Open Banking, which allows secure access for payment providers to request payment from a customer. In this scenario, there is no stranger able to take advantage of gaps or loopholes.

A proof of concept (POC) was launched in February 2022 after Pay@ processed the first successful Capitec Pay transaction in December 2021. The POC provided secure payments to over two million Capitec customers in South Africa during the last 12 months and offered a trusted alternative to sharing their card or banking login credentials with third parties.

Essentially, customers can make payments directly by simply opening their Capitec banking App and approving the payment.

The Application Programming Interface (API) implemented by Capitec enables third-party providers to securely initiate payment requests to Capitec clients, while allowing them to choose the account they want to pay from and authenticate the payment safely through the banking app.

The need to use screen scrapping is alleviated.

The Results are Remarkable

Since the launch, there has been exponential growth in the number of transactions processed month-on-month via Capitec Pay.

The rapid adoption rate highlights that a need is being addressed. To achieve it Pay@ played the role of the bridge to the consumer, reacting swiftly to feedback and implementing changes to fully test the capabilities of Capitec Pay API.

This allowed Capitec to experiment in a safe and controlled manner. Pay@, already an enabler for billers and their customers for the payment of bills including satellite tv, municipal bills, telco accounts, insurance, or traffic fines, has used the Capitec collaboration to develop their technology even further.

According to Pay@’s Clinton Leask, “It’s essential that consumers not only feel protected from fraud, but actually are. Working closely with Capitec by securely testing efficiency and measuring success rates, we have taken a massive stride forward to securing the details and livelihoods of South Africans.

It is a level of care that we have also implemented with EFT payments that are shielded from data breaches.

We believe that collaborating with banks to better secure their customers is vitally important to the economy.” Additionally, Capitec has further enabled Pay@ to process payments directly in the Capitec App under the Pay Bills section.

Expanding the Concept is Vital

While reviewing screen scraping, regulators such as SARB have proposed policy changes in respect of open banking.

 According to SARB’s November 2020 paper, “a new class of third-party providers, with access to customers’ financial information, should be introduced to improve offerings for customers, increase competition, and promote innovation. ‘Good’ permissible open-banking practices must be distinguished.” 

The Financial Sector Conduct Authority (FSCA) expanded on this view in their 2020 survey to uncover sentiments and perspectives around financial data.

They concluded that before consumer financial data is shared, informed consent between the consumer, financial service provider and third-party provider needs to have been obtained. Consumers need to be fully aware of terms and conditions of what they are consenting to and how their data will be used to serve them.

Clearly, policymakers, development partners, governments, and financial institutions must work together to develop more inclusive financial services for all South Africans – with security right at the top of the list of priorities.

Currently, nearly one in four South Africans are unbanked, with cash seen by many as safer or even more affordable. To enhance accessibility and instil trust, more inclusive financial service technologies must be introduced. For the over 11 million people that already use Capitec’s digital channels, Capitec Pay and the innovation that comes with it, translates into a banking experience that’s safer, secure, and infinitely more accessible. Pay@, through Capitec Pay is fully utilising open banking by harnessing the convenience of unique facial biometric scans and cardless online payments.

“Pay@ was progressive in their understanding of the payment industry and had the foresight to see how our product idea would solve a shared problem. They were willing to test the customer journey and their willingness to switch. This has proven to be a complete success. Our collaboration on Capitec Pay led to invaluable learnings, which helped to significantly improve the product and client experience to reduce drop-offs and abandonment rates, increase first-time conversions and very importantly, reduce the likelihood of fraud, “said Capitec’s Jerome Passmore.

The fact is, financial services are a significant enabler of social and economic development and therefore policymakers, development partners, governments and financial institutions alike need to work together to make strides in developing safe and secure products, especially at a time of economic instability.

It is critical to continue the evolution of fintech innovation, with regulators working hand in hand with financial institutions to decrease fraud, while finding new pathways to greater financial inclusion in the economy.

As banks continue to work with fintechs, the industry can focus on greater levels of transparency, informed consent and data security. Ultimately, with the industry rising to the risks, fintech innovation can safely unlock a new world of infinite possibilities.

The year is speedily coming to an end and the festive season calls for an increased number of online and physical shopping.

They both have their advantages and disadvantages but online shopping is one perfect solution for consumers who want to shop at home, but can’t get away. 

It also helps the retailers that are unable to deliver in person or contract with a third party delivery service. But there are drawbacks as well. 

Online shopping takes time and usually requires an internet connection, though they do exist for stand alone PC’s, tablets, and mobile devices like smartphones. 

But then, this disadvantage can be solved by using cloud computing where one device stores personal data on remote servers accessible from anywhere without relying on an internet connection.

Online shopping has lots of benefits: you don’t have to waste time in the car or on a train, you can shop when it suits you – no longer do you have to look before you go, plus you can get discounts with many online retailers who in turn receive higher orders than physically. 

On the downside, online shopping is considerably more expensive than physical shopping, as every item purchased online has cost more money to make and ship. But it can be worth it right?

Retailers have to work towards faster shipping, and pull customers with the ability to customize orders for free. Also, it provides a wide variety of brands to shop from which makes choosing what you need easier than going to a physical retailer. 

However, many people prefer going through the hassle of physically finding what they want and putting together their packages themselves. Even though people prefer physical stores because they feel more comfortable and safe there, there are still instances where the interaction with other customers is more personal in person than online.

Online shopping can be a cheaper and easier option than physical shopping. You can have your groceries delivered to your home, saving time and money on transportation and parking fees. But many of the products available on the internet can be of lower quality and may not meet your expectations for a certain product. 

So, as a retailer or supplier, you should win the trust of your customers with quality goods.

The downside to online shopping is that you have no physical product to hold or see until it arrives at your door. People still have the fear of low standard goods manufactured or packaged, with minimal quality control. 

You can not feel the quality or feel the worth before buying. Some people prefer to go to the physical shops, especially if they have never sold products before.

Online shopping is convenient because you can access the products even from home. On the other hand, a disadvantage often faced when shopping online is that it cannot be used the same way as a physical store. You have no idea what you will get until you receive your product and open it up.

Retailers need to include personalized services, superior products, and return policies to attract consumers.

Online shopping is more convenient for people to buy and pay for products, but it can be expensive because you have to pay more sales tax on the items. In addition, you have to pay extra fees for shipping and receiving the item in a shorter time frame than physical shops might offer. On the other hand, physical shops are cheaper because they do not charge sales tax, or shipping fees and they give the same price you see in their properties

Online shops also have a wide variety of payment methods that help you conveniently pay for your purchase quickly. It can be way better because it’s fast, easier and cheaper than physical shopping, but then again, nothing beats the feeling of purchasing goods in the comfort of your own home.