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The future of secure online marketplace trading in South Africa

Gumtree was founded with a simple and powerful vision: connecting local communities through essential peer-to-peer trading. After launching in South Africa in 2004, Gumtree quickly established itself as a pioneer and became one of the country's top ten most-visited websites. At a time when e-commerce was largely unknown, and internet penetration in South Africa was below 10%, Gumtree provided a practical solution for everyday trading, laying the groundwork for what would become a booming digital marketplace.

Fast forward to 2025 and internet penetration has surged dramatically to 78.9%, with over 50 million active users in South Africa. Of these, over 90% own smartphones, which has driven a sharp rise in mobile commerce, where 51.7% of online purchases in SA are being made via mobile phones. It is statistics like these that have focused Gumtree’s attention on a mobile-first approach.

Annual growth rates in South Africa for e-commerce sales currently hover between 20-35%, and as e-commerce growth accelerates, consumers increasingly expect personalised experiences, secure payment solutions and reliable, convenient exchanges of goods. But while internet penetration and online trading have accelerated over the past decade, so have online scams and fraudulent behaviour, for all online traders.

Safety has long been an issue for consumers on all unregulated online trading environments, with physical meet ups and paying in cash or via unverified payment links two of the biggest concerns. Reports indicate that one in six global Facebook Marketplace users has fallen victim to fraud, illustrating the scale of the challenge. The ease of creating deceptive social profiles exacerbates these risks, particularly in South Africa, where economic inequality and unemployment create fertile ground for exploitation. This underscores the importance of secure platforms where trust and transparency are prioritised.

The South African Police Services recommend that buyers verify the credibility of sellers, conduct transactions in safe locations and consider involving law enforcement if there are any suspicions.

Gumtree has proactively addressed these issues by embedding safety and trust into its core marketplace experience. The platform champions real identity verification, using advanced facial recognition technology matched with official South African government databases. This not only reassures users but also significantly reduces the risk of fraud. ID verification is also available for foreign nationals residing in South Africa. Likewise, our mobile number verification adds an extra layer of security by verifying the connection between a customer and the cell phone number they provide.

In 2024, Gumtree Pay & Ship was introduced on the app, offering an e-commerce-like experience for transactions including secure payment and nationwide delivery. The service aims to alleviate the need for in-person payments and in-person meetups with its escrow services, which offer an additional layer of security, holding funds securely until buyers confirm receipt and satisfaction with the goods. This reduces the potential for fake EFT payment scams, by keeping the entire trade journey on platform, under Gumtree’s control. For this service, Gumtree partnered with Trade Safe, South Africa’s longest-running digital escrow service. This greatly minimises risks associated with transactions and ensures peace of mind for both buyers and sellers.

Obviously some users prefer to meet face-to-face, and sometimes what is being sold means that this needs to happen. We emphasise the need to be safety conscious in these transactions, and our

verification processes definitely assists here, as sellers and buyers are able to opt to engage with verified users only (mobile, ID and email verified).

Gumtree has also prioritised on-platform communication to make transactions even more secure. Users are discouraged from using external channels like WhatsApp or SMS, which scammers often exploit, while the platform’s ‘Report’ feature empowers the community, allowing swift action against suspicious listings or activities. Collaboration with local law enforcement further strengthens Gumtree’s capability to tackle severe incidents swiftly and effectively.

While we’re confident that Gumtree is the leading online marketplace in South Africa, we know that there’s always room to innovate and improve. In line with this philosophy, we partnered with Wise Move in 2025 to broaden our scope of safe trading for items that aren’t catered for with Pay & Ship. Wise Move is a tech-enabled moving and courier platform that aggregates vetted independent logistics providers in South Africa to quote on the shipment of larger goods, unique items and even cars. This means that Gumtree users can buy a car, for example, in another province and get it delivered safely at an affordable rate. It’s another gamechanger that will have a big impact on both Gumtree buyers and sellers.

To increase trust and safety in the online classified space in SA, Gumtree is embracing AI as well as machine learning for threat detection and the personalisation of user experience. This is an area that will continue to evolve rapidly, and Gumtree will stay at the forefront of its application in the online marketplace space.

Because of our community-first approach, Gumtree not only responds to emerging consumer needs but is actively shaping the future of South African e-commerce marketplaces. Gumtree’s vision is to become South Africa’s most trusted online marketplace, by empowering individuals and businesses to connect, interact and hustle – all in a safer, smarter and more inclusive environment.

* Source: Meltwater’s 2025 Global Digital Report.

Betine Dreyer is Head of Product for Gumtree South Africa.