PayShap, a new interbank and real-time digital payments service, has been launched for the general public in South Africa. The service which was established collaboratively between Bankserv, a clearing house owned by South African commercial banks, and the South Africa Reserve Bank aims to provide an easy and secure way for banked and underbanked consumers to make low-value payments to one another in real-time, regardless of where they bank.
Mpho Sadiki, head of real-time payments at BankservAfrica, called the launch of PayShap a major milestone in South Africa’s payments modernization journey. The service is expected to reduce consumers’ dependence on cash and promote a shift towards a more digital payments future.
The rollout of PayShap will take place in two stages. The first stage involves the launch of the PayShap instant clearing feature, which allows users to pay using their account details or pay using a unique identifier such as a cell phone number. The second stage will introduce an additional request-to-pay function, which enables a person to request payment and receive money securely and immediately in their bank account.
The PayShap service is available to everyone whose banking platform offer the service. The launch is a huge move to accelerate the pace of digital payments adoption for all South Africans.
For a number of years, South Africa has been actively pursuing the modernization of its payments system. In 2018, the South African Reserve Bank initiated Project Khokha, which aimed to explore the viability of using blockchain technology to facilitate real-time settlement of transactions. A year later, the bank released a policy paper that set out its vision for a payment system that is more modernized, faster, cheaper, and more inclusive, with the aim of making financial services more accessible to everyone in the country.
The launch of PayShap is a major step towards achieving this vision. It is expected to provide a safe, easy, and convenient way for consumers to make low-value payments in real-time, regardless of where they bank. As South Africa continues to modernize its payments system, it is likely that we will see more innovations like PayShap in the future.
