TechPression

Tag: PayShap

  • PayShap Request: BankservAfrica introduces instant payment requests for South Africans

    PayShap Request: BankservAfrica introduces instant payment requests for South Africans

    BankservAfrica has announced a major upgrade to its real-time payment platform, PayShap, with the introduction of PayShap Request, a new feature that will allow individuals, businesses, and even informal merchants to request instant payments.

    This update, set to launch on December 2, is expected to transform interbank payments, offering a more seamless and efficient way for users to handle transactions across personal, business, and corporate settings.

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    The new PayShap Request functionality, announced on November 25, will allow users to initiate payment requests instantly through their bank channels. This will accelerate the payment process for a wide range of use cases, from everyday personal transactions to business payments. PayShap Request aims to bridge the gap between individuals and businesses by providing an easy and fast payment method without requiring the exchange of banking details.

    In the initial phase, major banks such as African Bank, Capitec, Discovery Bank, First National Bank, Investec, Nedbank, Standard Bank, and TymeBank will offer PayShap Request to their customers. Other financial institutions are expected to join the service over the next year, expanding its availability across South Africa.

    Enhancing South Africa’s payments landscape with PayShap Request

    The launch of PayShap Request follows the successful introduction of PayShap in March 2023, a fast payments system that allows users to send and receive money by using their mobile phone numbers instead of traditional bank account numbers. This system, which was developed in partnership with the South African Reserve Bank, has already made a significant impact on the payments landscape by enabling quick cross-bank transfers.

    Anton Van der Merwe, head of scheme for PayShap at BankservAfrica, highlighted the importance of the new PayShap Request feature.

    “This new functionality extends PayShap’s capabilities to both person-to-person and person-to-business payments, helping users manage their payment obligations efficiently while allowing businesses to innovate and grow in the agile economy,” Van der Merwe said. 

    Van der Merwe explained that PayShap Request is designed to meet a variety of needs, whether it’s a service provider like a plumber requesting payment for a callout, individuals sending payments to family and friends, or businesses accelerating the receipt of payments. The service is intended to make payments simpler and more efficient by sending requests in real time and ensuring that approved payments are processed instantly.

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    PayShap’s greater flexibility with higher transaction limits

    In response to growing demand, PayShap has also increased the transaction limit for payments through its platform. Previously capped at R3,000, the new limit now stands at R50,000, providing more flexibility for both personal and business transactions. This increase further enhances the system’s appeal, making it more useful for higher-value payments.

    Since its inception in March 2023, PayShap has processed over 130 million transactions, cementing its role as a leading platform for real-time payments in South Africa. The addition of PayShap Request is expected to significantly increase its usage, with users now able to initiate payments in real-time, creating a more agile and responsive payment environment for businesses and individuals alike.

    The introduction of PayShap Request is set to transform the way South Africans manage payments, offering a faster, more efficient, and flexible method for handling transactions across various sectors. With its real-time payment request feature, PayShap is well-positioned to lead the charge in modernizing South Africa’s payments ecosystem. As more banks adopt the service in the coming months, PayShap will continue to play a key role in shaping the future of financial transactions in the country.

  • MTN MoMo, SA become first non-banking player to offer PayShap

    MTN MoMo, SA become first non-banking player to offer PayShap

    MTN South Africa’s innovative collaboration with Investec and Electrum has introduced PayShap, an instant payment platform, to its MTN Mobile Money (MoMo) platform.

    This partnership aims to address the financial inclusion gap, particularly for the underbanked population in South Africa.

    The partnership between MTN South Africa, Investec, and Electrum is crucial because over 19 million South Africans lack access to formal banking services. Additionally, more than one million micro, small, and medium-sized businesses in the country primarily operate using cash. These numbers underscore the critical necessity of initiatives like PayShap to promote financial inclusion and modernise payment systems.

    Read also: MTN MoMo, mobile money platform expands across Africa

    MTN MoMo South Africa becomes the first to pioneer Payshap

    MTN MoMo SA, with its substantial subscriber base of over eight million users, has become a pioneering force by integrating PayShap. Through this collaboration, Investec serves as the banking partner, ensuring regulatory compliance and financial security, while Electrum brings technical expertise to implement PayShap seamlessly on the MoMo platform.

    Bradwin Roper, Fintech CEO of MTN South Africa, emphasises that this strategic partnership aims to empower users, especially those in the unbanked community, with increased accessibility and convenience in financial transactions. He highlights that this move aligns with MTN’s goal of promoting financial inclusion through secure and efficient mobile payment solutions.

    This initiative not only reflects MTN’s commitment to advancing digital financial services but also underscores its role as a pioneer in driving technological innovation for societal benefit. As PayShap gains traction, it promises to reshape how individuals across South Africa engage with and manage their financial activities securely and conveniently.

    Payshap Launched Out In March 2023

    PayShap, launched under the Rapid Payments Programme in March 2023, is a real-time interbank payment service supported by central banks such as Nedbank, Absa, Standard Bank, FNB, and Discovery Bank. Its approval by the South African Reserve Bank underscores its reliability and compliance with regulatory standards, ensuring a trustworthy platform for financial transactions.

    With PayShap, South Africans can enjoy instant money transfers using only their cell phone numbers, eliminating the need for traditional banking infrastructure and expanding financial access to a broader population segment. This innovation not only promotes cashless transactions but also enhances financial literacy and inclusion across different socioeconomic groups in the country.

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    One of the critical advantages of PayShap lies in its ability to foster a cashless economy, which not only boosts convenience but also helps reduce the risks of handling physical currency. Moreover, its real-time nature ensures that transactions occur swiftly, enhancing overall efficiency in financial dealings.

    Furthermore, PayShap’s integration into the financial landscape aligns with global trends towards digital transformation in banking and payments. By embracing such innovations, South Africa positions itself at the forefront of financial technology adoption, paving the way for future advancements and increased global competitiveness.

    Overall, PayShap’s launch marks a pivotal moment in South Africa’s financial evolution, promising enhanced accessibility, security, and efficiency in monetary transactions while driving progress towards a more inclusive and digitally empowered economy.