TC|Daily | PayShap: The Fintech revolution coming to SA’s payments system
Big changes are coming to the payments industry in South Africa early next year, including cheap and instant payments direct to mobile numbers – no bank account number or branch code required.
BankservAfrica has been working behind the scenes for years on a major systems overhaul that, when it goes live, will dramatically shake up the financial sector in South Africa, ushering in a new era of fintech-led innovation.
Through a project called the Rapid Payments Program (RPP) – which will be launched commercially under the name PayShap – South Africans will be able to transfer money instantly from their phones, even when developed, from instant messaging apps such as WhatsApp.
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The new platform will usher in a dramatic modernization of the payment system, with cloud services, open application programming interfaces and a flexible microservice architecture that forms the basis for further development by industry players.
Indeed, the launch of PayShap in March 2023 promises to usher in a new era of fast digital payments in South Africa that BankservAfrica believes could begin to displace cash from the economy – surprisingly, despite the country’s sophisticated banking sector, almost nine out of 10 transactions are still cash based.
In this episode of TC|Daily, BankservAfrica CEO Jan Pilbauer joins TechCentral editor Duncan McLeod in studio to talk about RPP, the launch of PayShap, what it means for banking and fintech innovation in South Africa, and how companies, including fintech startups and social media companies, can use it to develop breakthrough solutions.
BankservAfrica is a non-profit company established 50 years ago that acts as a financial clearinghouse for the financial sector. It is an important cog in South Africa’s economy and is owned by the big banks – Absa, Nedbank, Standard Bank and FirstRand each hold about 23.1% of the equity, with the remaining 7.5% owned by an entity called Dandyshelf, whose shareholders include Capitec, Investec, Bidvest and Sasfin.
Read more about RPP in TechCentral’s February 2022 article, “Huge changes coming to South Africa’s payments system.”
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