Is EFT the new payment comeback kid?

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Mongezi Mtati

Electronic Fund Transfers (EFT) may be one of the older payment methods on the block, but thanks to fraud and crime they are experiencing a revival. As technology platforms evolve to make EFTs more easily managed by users and merchants alike, they are growing in popularity. EFT payments are also more cost-effective and break down significant barriers to entry.

Image source: Ventureburn

A recent 2015 Ipsos survey examined some of the drivers and barriers that impacted online shopping around the world. The survey found that 22% of South African internet users have made purchases using EFT as their preferred payment, with this figure set to rise to around 50% thanks to its security, speed of delivery and lower cost percentages. This is being further driven by the increase in mobile phone subscriptions – more than seven billion worldwide – and a global figure of 3.2 billion people using the internet of which developing countries make up two billion. Africa has one in five people using the internet and that number is growing.

So why is the EFT suddenly sweeping the online payment floor? Because it’s easy to use and can be adopted as a method of payment by people who don’t have credit cards and have access to mobile banking, allowing for far greater reach and significantly lowering the barrier to entry for millions of people.