PayShap

PayShap, an interbank, and real-time digital payments service built as a collaborative effort between Bankserv, a clearing house owned by South African ...

“The launch of PayShap is a major milestone for South Africa’s payments modernisation journey. Payshap aims to reduce consumers’ dependency on cash and move to a more digital payments future,” added Sadiki. Payshap aims to reduce consumers’ dependency on cash and move to a more digital payments future,” said

Transactions in South Africa are expected to be far quicker, says the South African Reserve Bank.

Regarding the future of payment systems, the BIS said that retail payments are unlikely to be conducted in a singular method, “there will probably be a multitude of payment methods and arrangements.” SARB said that PayShap marks a milestone in the bank’s ongoing efforts to modernise and advance South Africa’s payment ecosystem in line with international standards. BankservAfrica has launched PayShap in collaboration with the South African Reserve Bank (SARB) – a new rapid payment system expected to revolutionise small-sum transactions in South Africa.

Payshap will be cheaper than banks' instant money services and immediate EFTs. But you can't reverse a payment once made.

BankservAfrica said it gave a lot of thought to minimising the fraud risk and the possibility of it being used in other financial crimes in the Payshap system. Speaking to News24 before the launch, Absa Everyday Banking CEO, Cowyk Fox, said one thing to be aware of is that once the payment is made, there's no reversing it. Furthermore, with money in the bank, it takes money to get it out because they have to travel to get to ATMs. That's why some of the Big Four were ready to launch their Payshap offering immediately on Monday, even though some apps had "technical difficulties". Others, like Absa, hadn't integrated Payshap into their apps at the time of publication. Payshap has been built with the end-user in mind," said Pilbauer.

Absa, First National Bank, Nedbank, and Standard Bank are all participating in this new system which should make interbank transfers and payments a far simpler ...

Whether that limit will be updated over the course of PayShap’s life is still to be determined. We anticipate that in the future, banks will innovate and opt to enable additional digital access channels.” In other words, this isn’t a standalone service. Or it could function in a more traditional retail setting, but we’ll have to wait and see how it all looks before jumping into that pool. It’s worth noting that the R3,000 limit is confined to single transactions. Absa, First National Bank, Nedbank, and Standard Bank are all participating in this new system which should make interbank transfers and payments a far simpler and cheaper affair.

PayShap, South Africa's first low value, interbank, real-time digital payments service, has been launched in the country.

“At launch, PayShap will be automat.ically accessible through bank channels such as mobile banking and internet banking. PayShap is not a standalone app and is accessed through existing banking channels only. PayShap, South Africa’s first low value, interbank, real-time digital payments service, has been launched in the country.

South Africans can now make free real-time payments of up to R3 000 between bank accounts using the PayShap free payment system introduced by regulator the ...

The aim was to raise the value of the free payment limit over time, added Banoonhai. “Participating financial firms and stakeholders agreed to a three-step process to build the innovative payment system, which is open, tap and pay. Today marks a milestone on this journey and is part of the industry's response to the SARB's Visions 2025,” said Tshazibana. There are often long queues of people waiting to withdraw money from automatic teller machines (ATMs),” highlighted Banoonhai. However, there are also risks and costs of using and holding cash,” she said. The first phase includes the PayShap instant clearing feature.

New interbank payment programme PayShap will benefit consumers and small businesses, helping to reduce reliance on cash and boosting safety and convenience.

This means that, during the first phase, people who don’t have bank accounts will not be able to use the system. The payer and the receiver need to bank with either of the four banks that offer PayShap. “PayShap will be automatically accessible through bank channels, such as mobile banking and internet banking. The competition is hugely welcomed in the payment space.” Even this payment system will be useful,” McCurrie said. Wayne McCurrie, a portfolio manager at FNB Wealth, said: “The more payment systems we have, the better.

First National Bank (FNB) and Nedbank currently offer the best prices on PayShap transactions, a MyBroadband analysis reveals.

“That said, from a BankservAfrica perspective, our role is at the centre which is to provide the clearing infrastructure in accordance with the National Payment System rules and the PayShap Scheme Rules that govern the PayShap services.” The margin is a complex calculation to ensure the bank can continue investing in developing PayShap and return a profit. PayShap offers real-time payments clearing in under ten seconds, and Shunmugam said they are required as banks to invest in the central platform Bankserv provides. “To this end, PayShap payments for amounts less than R200 only cost R2.50 per transaction, which is one of the most affordable in the market for low-value transactions regardless of whether the payment is made to a ShapID or a bank account.” “At the heart of Absa’s pricing philosophy with regards to PayShap was to make micro-payments affordable and to encourage early adoption, particularly for low-value transactions,” Wu stated. Banks refer to this as a “proxy payment”, where your ShapID acts as a stand-in or proxy for your bank account number.