New Exit Plan Urges South Africans to Ditch Bank Cards, SIMs

By purchasing smartphones that support eSIM and tap-to-pay, South Africans can do away with physical bank cards and SIM cards.

In Nigeria, tap-to-pay, also known as NFC (Near Field Communication) payments, is becoming more and more popular as a convenient and effective way to make purchases. 

The “Tap to pay” refers to contactless payment methods where users can make purchases by tapping their payment card or mobile device on a compatible payment terminal. 

Tap-to-pay technology allows for quick and secure transactions without the need to swipe or insert a card. Companies such as Karla and NowNow offer tap-to-pay solutions.

With tap to pay contactless payments from both digital wallets and traditional cards can be accepted by users.

These functionalities are now available to many more customers thanks to the significant decrease in the cost of devices having these capabilities.

Because tap-to-pay is more secure than swiping or dipping a card, major banks have long urged consumers to use it for card transactions.

The primary reason is that a tap payment eliminates the need for a card to be removed from the customer’s grasp, which lowers the possibility of card cloning or disclosing the card’s information to nefarious individuals.

But before a PIN is needed, the majority of banks don’t let customers alter the usual maximum spending amount for tap payments.

Some customers are worried that if their card is stolen, the thief may go on a shopping spree and make several purchases before they can ban their card.

This problem is resolved by digital wallet software such as Apple Wallet, Google Wallet, Samsung Wallet, or Garmin Pay. These apps enable tap payments by connecting a bank card to a variety of smart gadgets.

To make payments, these apps need a PIN or the permitted user’s biometrics. Without such credentials, a criminal cannot complete a transaction, even if they manage to take your smartphone.

This feature allows for safe and encrypted wireless data transfer between the device and a payment terminal via a near-field communications (NFC) chip.

With many options priced around R5,000 (approximately $280.27), including many of Samsung’s Galaxy A series budget devices, NFC has grown more prevalent on mid-range and low-cost smartphones in recent years.

In recent years, banks have witnessed a boom in the number and value of digital wallet payments as more South Africans have been able to afford these devices.

Digital wallets are practical because they enable users leave their cards at home or in another secure location, while also improving the security of tap payments.

eSIM support is also becoming more affordable this is because of its ease of use, the embedded SIM (eSIM) is another technology that has gained popularity. It is a programmable SIM that carriers can allow clients to activate using a digital voucher. 

Since the consumer no longer needs to purchase or have a physical SIM card sent, signing up for a cellular plan is made much easier.

Multiple SIMs can be stored on an eSIM device, and users can quickly swap between them. To save money on calls, SMS, and data, they might also utilise several eSIMs at once, depending on the device.

Before Samsung released their first mid-range handset, the Galaxy A54, in Europe and North America in 2023, eSIM chips were mostly used in flagship or high-end devices.

In January 2025, when MyBroadband first examined reasonably priced options in the local market, we discovered that the Samsung Galaxy A55, at R8,999 (approximately $504.59), was the most economical. 

At about R9,999 (approximately $560.69) at the time, the iPhone 11 was the most reasonably priced eSIM-enabled smartphone for Apple devotees.

Eight months later, models from both brands are priced under R6,000 (approximately $336.47). The Galaxy A36, the least expensive model from Samsung, is listed on Takealot for R5,900 (approximately $336.39).

The phone was selling for between R6,000 (approximately $336.47) and R7,000 (approximately $392.50) on various outlets, which is still a significant discount compared to the Galaxy A55.

On Game’s online store, we discovered an iPhone SE 2022 model priced at R5,999 (approximately $336.18) for those who would prefer an Apple smartphone with eSIM functionality.

The less expensive Galaxy A26 also supports eSIM in select areas. This feature is absent from the version that is offered for sale in South Africa through official channels.

When it comes to Android manufacturers, region-specific features are typical, and consumers should be mindful of them before making a purchase.

In South Africa, Xiaomi also sells a lot of smartphones under R5,000 (approximately $280.08) that don’t support NFC but do in other nations.

Customers seeking features like support for tap payments and eSIMs should carefully review the listing’s details or get in touch with the shop for reassurance, especially given the rise of parallel-imported devices.