PayShap: The fintech revolution coming to SA’s payments system
BankservAfrica has been working behind the scenes for years on a major system overhaul that, when it goes live, will dramatically shake up the financial services sector in South Africa, ushering in a new era of fintech-led innovation.
Through a project called the Rapid Payments Programme (RPP) – which will be launched commercially under the name PayShap – South Africans will be able to transfer money instantly from their phones, even, once developed, from instant messaging apps like WhatsApp.
The new platform will usher in a dramatic modernisation of the payments system, with cloud services, open application programming interfaces and a flexible microservices architecture forming the foundation for further development by industry players.
Indeed, the launch PayShap early in 2023 promises to herald a new era of rapid digital payments in South Africa that BankservAfrica believes could begin to displace cash from the economy – astonishingly, despite the country’s sophisticated banking sector, almost nine in 10 transactions are still cash based.
In this episode of TC|Daily, BankservAfrica CEO Jan Pilbauer joins TechCentral editor Duncan McLeod in-studio to talk about the RPP, the launch of PayShap, what it means for innovation in banking and fintech in South Africa, and how companies, including fintech start-ups and social media companies, can use it to develop cutting-edge solutions.
BankservAfrica is a non-profit company established 50 years ago that serves as a financial clearing house for the financial sector. It is a vital cog in South Africa’s economy and is owned by the big banks – Absa, Nedbank, Standard Bank and FirstRand each hold about 23.1% of its equity, while the remaining 7.5% is held by an entity called Dandyshelf, whose shareholders include Capitec, Investec, Bidvest and Sasfin.