BankservAfrica is preparing for the launch of a low-value, interbank, real-time digital payments service, to be offered by participating banks in 2023.
The new service, PayShap, will initially be offered by four banks, including Absa, FNB, Nedbank and Standard Bank, before extending to more banks in the months following its launch.
BankservAfrica real-time payments head Mpho Sadiki says PayShap, a major milestone for the payment industry, is aimed at addressing the key goals recognised by the South African Reserve Bank’s Vision 2025 for financial inclusion – reduced dependence on cash and the development of a modern, integrated platform for digital payments.
Born out of the rapid payments programme, which is designed to enable the widespread use of digital payments for low-value but high-volume payments that are currently serviced mostly in cash, PayShap is expected to benefit the underbanked, cash-dominant market the most; however, most banked South Africans will enjoy the convenience of the service.
“Making a low-value, under- R3 000 payment to an account at any other bank should be quick, easy and affordable,” he says, noting it is also safer for daily transactions, such as those used for taxi fares, barbers and hair salons, school fees, restaurants or to reimburse friends or family, as PayShap reduces the need for cash on hand.
Consumers will be able to access PayShap through their banks’ selected banking channels,such as Internet banking, banking applications or their bank’s USSD.
“As the payments ecosystem evolves, providing safe, quick and convenient solutions is vital to enable greater financial inclusion. We look forward to the official launch of PayShap in 2023, and continue to work hand in hand with the industry to ensure a successful roll-out,” says Absa head of payments Charl Smedley.
FNB EFT product house CEO Ravi Shunmugam says the banking group is proud to be a founding member of this inclusive payment infrastructure, and is looking forward to bringing innovative instant-payment solutions to its customers.
“Our participation in this industry initiative is a declaration of our commitment to ensuring that all types of payments offered by Nedbank are simple enough to be understood and adopted by all, accessible and, most importantly, affordable, allowing value exchange across all parts of our economy,” adds Nedbank emerging innovation executive Chipo Mushwana.
Meanwhile, Standard Bank South Africa head of payments Rufaida Banoobhai says that participation in the PayShap programme to build a payment service, serving both banked and underbanked customers, enables the banking group to continue to accelerate financial inclusion through safe, affordable, accessible and convenient digital solutions.