South Africa’s Capital Appreciation gains as more consumers drop cash for cards and digital money

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Capital Appreciation, a payment services facilitator which handles the distribution and management of point-of-sale devices in retail outlets, is making double-digit profits, as more consumers drop cash for credit cards and digital currency.

In the six months to September 2018, the company’s operations, which also include transacting platforms to reconcile business-to-business and business-to-consumer transactions, grew payment terminals on behalf of its banking and institutional clients to 103,000- well ahead of its March 2019 target.

Bradley Sacks, Chief Executive Officer of Capital Appreciation, said “what we have seen is that cash is becoming less prevalent every year. The number of credit and debit cards in the market is growing at a rapid rate. The long-term trend shows that cash transactions will diminish”.

An annual report published by The Payments Association of South Africa in 2017 showed that the volume of card transactions in South Africa increased from about 750 million in 2010 to 2.5 billion by the end of 2017. The combined value of card transactions also grew 10 percent each year on a compounded annual growth rate basis.

Capital Appreciation increased its trading profit by 25 percent to 82.8 million rand in the six months to the end of September and headline earnings went up 13 percent to 63.3 million rand. The infrastructure unit grew its revenue 54 percent to 253.6 million rand in the six months to September while profit after tax increased 32 percent to 50.7 million rand.

Synthesis, Capital Appreciation’s software and systems developer, grew its profit after tax by 72 percent to 13.4 million rand. The company offers consulting and technology-based solutions such as machine learning, artificial intelligence and big data capabilities to financial institutions.

 

 

 

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