PayShap to transform low-value payments in South Africa
It’s 2023, and we are living in an era of innovation, so why is there still money under the mattress? This is a common question often asked by South Africans who find themselves relying on cash and wasting time in ATM queues to withdraw cash or make payments.
The good news is that there will be an imminent shift thanks to PayShap, a new instant interbank payments service. Born out of the payments industry-led Rapid Payments Programme, in direct response to the South African Reserve Bank’s Vision 2025, which called for a “collaborative approach among industry stakeholders”, PayShap is now live and available through Absa, FNB, Nedbank and Standard Bank with more banks coming soon.
The PayShap service, which is accessible through bank channels, is designed to meet our country’s need for digital payment agility. PayShap offers the ability to make quick and easy payments from one account to another at different banks and is expected to transform the digital payments landscape for all South Africans.
“PayShap is going to be a game-changer for South African bank account holders,” says Mpho Sadiki, Head of Real-time Payments at BankservAfrica, in an interview with News24 before adding: “Instant payments are as good as money in your wallet but without the reliance on cash. It provides a reason to believe in digital payment services and encourages its adoption.”
With a limit of up to R3000 per transaction, PayShap can be used for day-to-day payments that would have traditionally been done in cash. Whether it be a payment to a hair salon, home maintenance service or online community market purchase. PayShap is easy, safe and instant.
A first in South Africa, PayShap introduces a payment identifier other than a bank account number for payments. Bank customers can now provide their cellphone number when they need to be paid. They simply need to login to their banking app or internet banking, look for the PayShap icon and follow the prompts to register their cellphone number for PayShap payments. This becomes their ShapID.
“As long as the recipient’s bank also offers PayShap, the transfer of funds is instant,” says Sadiki. The good news is that while you’re dealing with planning your life around loadshedding schedules, you can have comfort that getting paid conveniently when you need to or paying who you need to on time is one less thing to worry about.
PayShap is not for personal transactions only but is also a viable cash alternative for businesses of all sizes for low-value payments. Instant payments from customers means that businesses can free up cash flow and grow their operations. Digitisation of cash helps businesses develop a track record and credit profile, creating new business development and growth opportunities.
“We believe this is the kind of innovation that will change the person-to-person and person-to-business experience for a significant portion of the underbanked and cash-dominant South African population. We encourage people to log in to their banking apps for activation,” Sadiki concludes.
People In This Post
Companies In This Post
- Acquired.com Partners With Multipay as Its Official Hardware Provider for Card Terminals Read more
- AIB Selects Novidea’s Insurance Platform to Support Its Lloyd’s Coverholder Growth Strategy for the Caribbean Read more
- The Sandbox Partners With GCEX to Create an Education and Client Engagement Platform Within the DubaiVerse Read more
- Xapo Bank Becomes The First Fully Licensed Bank To Enable USDC Deposits and Withdrawals Read more
- Bitwise Launches BITC, a New Type of Bitcoin-Linked ETF Designed for Long-Term Investors Read more