In order to increase financial inclusion in South Africa, the South African Reserve Bank (SARB) has announced the introduction of PayShap, a low-value, real-time quick payments platform for businesses, and individuals.
PayShap is the result of the Quick Payments Project, which was started by BankservAfrica and the South African payments sector as part of SARB’s Vision 2025, which outlines nine objectives to enhance the nation’s payment infrastructure.
With PayShap, customers will have access to quick, real-time payments between partner banks and will be able to complete transactions using a payment identity other than a bank account.
By login into their mobile banking app and entering their phone number beneath the PayShap button, bank users may utilize their mobile phone numbers to make payments.
In an effort to decrease the use of cash by individuals and small companies, the payment threshold will initially be set at ZAR 3,000 ($163) per transaction.
Absa, First National Bank, Standard Bank, and Nedbank will all take part in the rollout’s first phase, with other institutions likely to follow in the second. As soon as it is technically viable, the SARB wants to make the service available to non-banks.
PayShap advertises that it follows “global best practices” for rapid payments and is an ISO 20022-compliant platform.
