Part of the South African Reserve Bank's Vision 2025 is to develop a cashless economy and make the country's payment systems easy to use, secure, and inclusive. The move will ensure more South Africans are part of the digital economy. The PayShap service is a major boost to the implementation of financial transactions that are less cash-dependent as it offers flexibility and lower rates for real-time payments.
PayShap South Africa was launched on 13th March 2023 by BankservAfrica, SARB, and the country's big four banks. The shift to cashless and instant financial transactions is a global trend being adopted by governments worldwide. The launch in Mzansi is expected to drive digital innovation and increase the number of people adopting mobile and internet banking.
What is PayShap?
PayShap also called the Rapid Payments Programme (RPP), is an instant interbank digital payment service that allows South Africans to transact without a bank account number. It is the first of its kind in the country and offers low-value payments. PayShap was developed by BankservAfrica and is expected to lower the cost of owning bank accounts.
The service will be rolled out in two phases. The first phase, which was launched in March 2023, addresses PayShap's instant clearing feature that entails pay-by-proxy and pay-by-account services. The second roll-out will feature request-to-pay services that allow customers to initiate payment requests.
How does PayShap work in South Africa?
The BankservAfrica-developed PayShap service is similar to Real-Time Clearance (RTC) and Electronic Funds Transfer (EFT). It allows South Africans to make and receive instant payments using a bank account-linked mobile phone number, also called ShapID. Customers will only need to give their ShapID to receive payments.
ShapID mobile transactions are real-time and can be done 24/7 at a reduced fee. If you bank with multiple banks, you can set up multiple ShapIDs, which you will provide when requesting money to be paid to a particular account.
You can remove a registered ShapID at any time and register again with a new cellphone number. Customers who are yet to get a bank-registered mobile number can still make instant transactions via internet banking using their bank account details.
As the service launches in South Africa, only small-value transactions are supported during the pilot roll-out. Customers can pay or be paid up to a maximum of R3,000 per transaction, while the daily limit is capped at R5,000.
PayShap is only accessible through mobile and digital banking services. To use the instant payment service, look for the PayShap icon on the banking app that you are using and follow the prompts.
Which South African banks support PayShap?
The service is currently supported by the big four SA banks, including Absa, Standard Bank, First National Bank, and Nedbank. More financial services providers are expected to join as the roll-out is developed over the course of the year. South African can access PayShap via mobile and internet banking offered by participating banks.
Is ACH available in South Africa?
Yes. Johannesburg-based BankservAfrica is Africa's leading automated clearing house (ACH) that enables electronic bank-to-bank transactions 24/7. The interbank clearing house is working to stabilize the SA National Payment System and ensure financial inclusion in Sub-Saharan Africa.
Which banks support PayPal in South Africa?
PayPal customers in South Africa can use the First National Bank to withdraw their PayPal funds into a South African bank account. All you have to do is open a PayPal account and register for FNB Online Banking. You can then use your profile to receive payments via PayPal, withdraw money to any SA bank account, and top-up your PayPal account using your FNB account.
Which payment app is peer-to-peer in South Africa?
P2P payment apps allow customers to send and receive money directly via electronic money transfer, which can be mobile or internet. Popular peer-to-peer payment applications in South Africa include Cashloop, Chipper Cash, and Slide.
The future of South Africa's economy is cashless, secure, and convenient with the introduction of the PayShap service. The adoption of a digital economy is expected to drive the innovation and implementation of digital solutions that will accelerate the growth of the country's financial sector.
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Source: Briefly News