BankservAfrica has launched PayShap in collaboration with the South African Reserve Bank (SARB) – a new rapid payment system expected to revolutionize small-sum transactions in South Africa.
In partnership with major banks such as Standard Bank, Absa, Nedbank and FNB, the new system aims to replace cash altogether in South Africa.
Banks such as Capitec, Investec, Discovery, TymeBank and Standard Chartered are also expected to also integrate with the new system in the future.
PayShap is a low-value, real-time rapid payment platform aimed at deepening the digital financial inclusion of both consumers and small businesses.
The platform is a commercially available system stemming from the Reserve Bank’s Rapid Payments Programme (RPP).
It allows users to send money using a cellphone number (ShapID) which recipients can use directly to make payments to others without having to cash out first.
The new system also removes the need for remembering bank account numbers.
PayShap is designed for smaller transactions and is cheaper than current instant money transfer methods between banks.
Credit transfers and contactless card payments are among the main drivers of growth in the fast payment sector.