PayShap services are currently available at eight local banks.
BankservAfrica's PayShap fast payment system has experienced significant growth since its launch and is preparing to expand to local small businesses and retailers later this year.
Launched a year ago, PayShap enables instant digital payments between banks through a real-time payment system that processes transactions within 60 seconds.
It also aims to allow transactions to be carried out without the need for bank account details. This is done through public and private identifiers such as registered mobile phone numbers and email addresses. Additionally, PayShap provides peer-to-peer e-wallet payment services.
This industry-wide collaboration is led by automated payments clearing organization BankservAfrica in partnership with the South African Payments Association and the South African Bankers Association.
According to BankservAfrica, SA's first interbank interoperability service facilitated more than 14 million transactions from 13 March 2023 to 29 February 2024, with a payment value of over R9 billion.
Additionally, PaySap data shows that more than 2.5 million users have opted to use a ShapID identifier, such as a mobile phone number, to eliminate the need for recipients to know the recipient's bank account details when making online payments. It has been shown that there are.
As part of the second phase of the rollout, the clearinghouse plans to introduce several services, including the expansion of PayShap to local businesses.
“In direct response to the South African Reserve Bank’s Vision 2025 to improve financial depth by building trust and familiarity with electronic payments, PayShap will rapidly become recognized as a trusted digital peer-to-peer payments solution within a year. ,” he said. Stephen Linnell, CEO of BankservAfrica.
“Request to Pay, which will be introduced later this year, will open up the PayShap service to small business owners and merchants for the digital purchase of goods and services in real time. Learn more, including enabling a QR code-based acceptance mechanism. More information will be shared soon.”
According to BankservAfrica, the service not only allows businesses to make and receive instant payments, but also allows them to pay salaries to their employees.
While payment companies welcomed the introduction of the system as an important development for the local financial sector, they also expressed concerns, including the fact that the system does not support person-to-person transactions.
They believe that business services offer an opportunity for companies looking to take advantage of the speed, security and potential cost-effectiveness of technology, which in turn improves cash flow, reduces transaction costs and expands customer reach. He pointed out that it would be helpful.
The PayShap community initially started with the big four banks: Absa, First National Bank, Nedbank, and Standard Bank, but has grown to include Capitec, Discovery Bank, Sasfin, and Tymebank.
“We look forward to welcoming our ninth member, African Bank, soon,” Linnell said.
As the scheme operator and administrator of the PayShap service, BankservAfrica says it is preparing for its evolution in the coming months.
The organization is running a campaign focused on educating students about PayShap at local universities.
