BankservAfrica Partners with South African Reserve Bank to Revolutionize Digital Payments
In an exciting move for South Africa’s digital economy, BankservAfrica announced yesterday that the South African Reserve Bank (SARB) is set to acquire a 50% stake in the company. This initiative, developed alongside commercial banks, aims to transform the digital payments landscape, paving the way for a national Payments Utility. It’s an indicator of how serious the South African financial sector is about enhancing its payment systems and ensuring they meet the needs of a modern, tech-savvy populace.
This partnership comes at a crucial time as financial institutions strive to improve security, inclusivity, and efficiency in payments. Stephen Linnell, CEO of BankservAfrica, emphasized the importance of this collaboration: “Our role has always been to provide essential payment services to financial institutions. This consequential partnership signifies both a continuation and expansion of that role as we focus more deliberately on financial inclusion through affordable access to modern payment capabilities.”
Although the deal is still subject to the finalization of detailed agreements and regulatory approvals, the anticipation is palpable. This collaboration signifies a dedicated effort to get more South Africans onboard with digital payment solutions, an essential component for driving economic growth and stability in the region.
One of the foundational services expected to come from this new Payments Utility is PayShap. Launched in March 2022 by BankservAfrica, PayShap has rapidly gained traction, allowing users to make instant payments conveniently and securely. In fact, the service is currently seeing an impressive volume of over 1 million transactions daily.
Recent reports show that FNB facilitated R2 billion worth of transactions through PayShap last month, highlighting its pivotal role in transitioning from cash to digital payments. Standard Bank echoed this sentiment, noting a pronounced uptick in instant payment transactions, largely driven by the increasing adoption of PayShap.
This year has seen tremendous growth for PayShap, with Standard Bank reporting a 9% increase in clients registering for the service and a staggering tenfold (817%) year-on-year rise in active use of ShapID for transactions.
In light of these developments, BankservAfrica and SARB are committed to making significant strides toward improving digital payment accessibility in South Africa, ultimately supporting broader financial inclusion and economic vitality.
Stay tuned as we cover more on this exciting chapter for South Africa’s financial landscape!
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