In South Africa, the process of introducing Payshap, an inexpensive real-time interbank digital payment service, has started.
This digital payment service is aimed at providing access to financial services in places where there is no corresponding access or is significantly limited. Payshap was created following the concept of the South African Fast Payments program, which is part of the country’s Reserve Bank’s plan to develop the financial services industry.
The initial implementation of the service will provide users with access to instant payments in real time between participating banks. Consumers will use an alias that will allow transactions to be carried out using a unique identifier other than a bank account number – a mobile phone number.
At the initial stage, PayShap will be implemented by Absa, First National Bank, Standard Bank, and Nedbank. Then other financial institutions and commercial companies will join the process of using the service.
In the second stage of the implementation of PayShap, the payment request function will be introduced. With this function, the user can request a payment and safely and immediately receive money in his bank account.
The head of the real-time payments department at BankservAfrica, Mpho Sadiki, says that the service will be automatically available through banking channels such as mobile banking and Internet banking. He also said that he expects financial institutions to actively apply innovative solutions in the future and make a choice in favor of additional digital access channels.
The head of the FNB EFT product division, Ravi Shunmugam, expressed confidence that the cost of transactions through PayShap will be affordable for most users since the risks and other factors associated with the functioning of the system are not significant from the point of view of pricing.
As we have reported earlier, South African Mobility Fintech Planet42 Raises $100M for International Expansion.