PayInc's Economic Index fell 2.1% month on month to 102.6 in May 2026, its lowest level since November 2025, the payments clearing house formerly known as BankservAfrica said on 10 June 2026. The company rebranded as PayInc in August 2025.
The index remained about 4% higher than in May 2025. The number of transactions processed dipped to 185.5 million in May from 186.3 million in April, though volumes were still 5.2% higher than a year earlier. The nominal value of electronic transactions was R1.369 trillion.
By payment stream, EFT debit and credit transactions and DebiCheck contracted slightly, while PayShap and Real-Time Clearing recorded modest gains.
INFLATION PRESSURE
Shergeran Naidoo, head of stakeholder engagement at PayInc, said the index declined by 2.1% month-on-month to 102.6, marking the lowest level since November 2025. He attributed the weaker outcome primarily to higher inflation forecasts, reflected in rising consumer and producer price indices. PayInc also pointed to a slight tapering in cash demand. Independent economist Elize Kruger said consecutive fuel price increases and the South African Reserve Bank's 25-basis-point interest rate hike in late May, combined with declining consumer and business confidence, were expected to weigh on economic activity in the months ahead. OTHER INDICATORS
The index, which tracks electronic transactions and wholesale cash demand, is one of several gauges pointing to weaker activity. The S&P Global South Africa Purchasing Managers' Index fell below the 50-point threshold separating expansion from contraction, dropping to 49.6 in May from 51.6 in April, while the Absa PMI declined to 50.8 from 52.6. Vehicle sales, by contrast, rose 12.8% year on year in May.