"Online retail in South Africa is no longer an alternative; it’s a core part of the economy. The 2025 report shows how innovation, trust, and customer experience continue to drive growth, and why businesses that embrace digital-first strategies will lead the next wave of retail.
Rahul Jain, CEO and Co-Founder of Peach Payments
Just twelve months ago, the WWW Online Retail Report revealed that online sales would take until 2026 to account for 10% of total retail. Fast forward to this year, and that tipping point is already within reach. With ecommerce sitting at 8% today and accelerating ahead of the festive season, South Africa is on track to cross that threshold before the year is out. It’s proof that digital shopping is no longer a side note—it’s now central to the way the economy grows.
What’s Powering the Upswing
The biggest catalyst for growth has been on-demand groceries, with platforms like Checkers Sixty60 making it normal to have essentials dropped at your door in less than an hour. Fashion and lifestyle brands are also accelerating, blending digital convenience with loyalty rewards and curated experiences that keep customers engaged. Whether it’s everyday items or the latest tech from Takealot, shoppers are proving that when payments are fast, secure, and reliable, adoption quickly follows.
At the same time, trust has become a decisive factor.
Nearly half of South Africans (46%) say they place more confidence in local platforms, while only 10% feel the same about overseas retailers - a clear advantage for homegrown businesses.
Convenience, Trust, and Payment Choice
The rules of engagement have shifted. Convenience sets the standard. Trust builds loyalty. Payments connect the dots. Real-time payment rails such as PayShap, now offered by 40% of retailers, are gaining ground because consumers value immediacy, while Buy Now, Pay Later, adopted by 16% of retailers, is unlocking flexibility for shoppers and fresh growth opportunities for merchants.
The WhatsApp Effect
One of the biggest opportunities lies in commerce through WhatsApp. Initially just a customer support tool, it has become a place where people make enquiries, book services, and even complete purchases—all inside an app they already use every day. For merchants, that means sales can increasingly happen on the very platforms where conversations already take place.
38% of retailers are already considering WhatsApp as a payments channel, signaling the scale of the opportunity ahead
Online and In-Store: A Blended Future
Despite this rapid digital expansion, physical retail remains crucial. Nearly three-quarters of retailers still process payments in store, with brands like Woolworths reinventing the checkout experience to blend offline and online. The future isn’t one channel or the other—it’s the combination.
Overcoming Checkout Drop-Off
Even with the growth, challenges persist. Cart abandonment remains one of the biggest threats to conversion, often due to long checkout flows, unexpected costs, or failed payments. At Peach Payments, we work with retailers to design smart, streamlined checkout experiences and orchestrate payments to reduce friction and keep transactions moving.
Looking Ahead
South Africa’s ecommerce market is maturing at speed. With online retail set to surpass R130 billion by the end of 2025, the sector has shifted from promise to proof. At Peach Payments, we’re proud to help power this transformation with a platform that unites secure payments, multiple payment options, WhatsApp commerce, and omnichannel solutions in one.
Here’s to the next wave of growth, innovation, and thinking bigger in retail.
How Peach Payments can help you