Capitec Bank, in partnership with payments infrastructure company Stitch, has launched Capitec Pay Variable Recurring Payments (VRP) — the first offering of its kind in South Africa. The feature allows Capitec customers to make subscription and recurring payments directly from their bank accounts, providing a secure alternative to using credit cards for services like streaming, mobile contracts, grocery delivery, and more.
The launch marks a major step in modernizing South Africa’s payments landscape, giving customers more flexibility and control while enabling merchants to streamline collections.
How Capitec Pay VRP Works
Using Capitec Pay VRP, customers can pre-authorize future transactions through the Capitec app, including a maximum amount they may be charged per transaction.
Key steps include:
- Selecting Capitec Pay at checkout and entering a registered mobile number.
- Receiving an authorization request in the Capitec app showing the transaction limit.
- Approving the initial transaction or setup.
- Allowing subsequent payments to process automatically, unless the amount exceeds the approved limit.
Customers can pause or cancel payment mandates at any time, adding a layer of transparency and control often missing in traditional recurring payments.
Where VRP Can Be Used
Capitec Pay VRP can support a wide range of recurring or variable-amount payments, including:
- Food and grocery delivery, where final charges may vary based on substitutions or item availability.
- Logistics and parcel delivery, with variable costs based on weight or distance.
- Mobile phone contracts, enabling monthly debit from Capitec accounts.
- Streaming services, supporting monthly subscription billing.
- E-commerce and retail subscriptions, for products delivered at regular intervals.
Boost for Enterprise Merchants
For businesses, VRP is designed to reduce failed payments, improve collection efficiency, and simplify operations.
Benefits include:
- Faster and seamless recurring collections
- Higher payment success rates
- A more secure and intuitive user experience for customers
Chris Zietsman, Executive Head of Capitec Business Payments, said the feature expands the everyday use cases of Capitec Pay while keeping merchant costs affordable. “Clients gain more control and visibility over their ongoing payment commitments,” he added.
Stitch President and Co-founder, Junaid Dadan, noted that VRP will significantly improve subscription and variable-payment experiences in South Africa. “This will have a major impact on the market, and we’re excited to offer this to all our enterprise clients,” he said.
Stitch has supported Capitec Pay since its launch in 2023. Today, the payment method boasts over 25 million active customers, making it one of the fastest-growing account-based payment solutions in the country.
