Every generation of young South Africans has been defined by a determination to build a better future. While past generations fought for political freedom and social change, today’s generation turns its sights on economic opportunity.
Faced with high unemployment, limited access to resources and a rapidly evolving business landscape, young people are choosing a different path: building businesses powered by digital technology.
New data from Payfast, South Africa’s leading payment provider, reveals 22% of local merchants on its platform are under 35, highlighting a growing wave of young entrepreneurs and a shift in how small businesses are built and scaled.
From online education services and software development firms to e-commerce stores and digital marketing agencies, a new generation of entrepreneurs is emerging. This one uses technology to overcome traditional barriers to entry and reach customers far beyond their immediate communities.
“Youth entrepreneurship has always been important, but what is different today is the scale of opportunity available through digital commerce,” says Mpho Sadiki, Managing Director: Merchant Services, Africa at Payfast and Network International.
Payment platforms like Payfast allow young merchants to give their customers more ways to pay, helping them convert more sales and get paid faster.
“Previous generations often needed significant capital, physical premises and extensive infrastructure to start a business. Today, a young entrepreneur can launch an online store, accept payments, market their products and serve customers across the country from a single connected device. Technology is helping to democratise entrepreneurship,” Sadiki adds.
Growing scale and inclusion: Young founders are entering the market earlier
With 22% of merchants being under 35 on the platform, Payfast data shows more than a third of all new merchant sign-ups over the past year came from this age group. This signals strong momentum among young entrepreneurs entering the digital economy.
Importantly, this growth is also becoming more inclusive. Of the Payfast merchants under 35, more than 42% are women, highlighting how digital commerce can help lower traditional barriers to business ownership and create greater access to economic participation.
Additionally, the fastest growing categories among young merchants include advertising, computer programming and data processing, schools and educational services, and automotive parts and accessory stores. Encompassing businesses that can be capital intensive to establish, these categories reflect a growing ability among young people to establish their businesses more quickly and make use of the resources they already have, like a smartphone or digital device.
Connecting to the future: The rise of digital-first business models
During the past 12 months, Payfast data reveals 36.63% of users who signed up to be Payfast merchants are younger than 35. More young South Africans are making the entrepreneurial push, opting for business models that leverage the nation’s growing digital ecosystem rather than taking on the challenges associated with traditional brick-and-mortar operations.
This approach has begun to pay dividends. Payfast data also shows that online commerce among younger merchants has grown by 5.5%. This comes as South Africa’s e-commerce industry enters a new growth phase, fuelled by operational effectiveness and consumer trust. Merchants capitalise on these trends using seamless online payment solutions – the foundation of a successful digital economy.
Today’s entrepreneurs will build tomorrow’s economy
As South Africa commemorates Youth Day, it is worth recognising that the next generation is already shaping the country’s economic future.
“The challenge now is ensuring young business owners have access to the tools, funding and payment solutions needed to grow sustainably,” Sadiki says. “When young entrepreneurs succeed, they don’t just create income for themselves; they create jobs, spur innovation and make meaningful contributions to South Africa’s continued socioeconomic development.”
The success of young merchants will depend on many factors, but the outcome is clear. Reduced barriers to entrepreneurship and support towards digital commerce will unlock the full potential of South Africa’s youth. “The entrepreneurs building tomorrow’s economy are already here. The opportunity now is to help them grow,” Sadiki concludes.