- BankservAfrica launched PayShap in collaboration with the South African Reserve Bank (SARB)
- Of the total diaspora remittances,40% came from South Africa followed by the UK
- PayShap is designed for smaller transactions and is cheaper than current instant money transfer methods between banks
Harare- In partnership with the South African Reserve Bank (SARB), BankservAfrica introduced PayShap, a revolutionary speedy payment method that is anticipated to transform small-sum transactions in South Africa. The new system intends to completely replace currency in South Africa in collaboration with major institutions like Standard Bank, Absa, Nedbank, and FNB.
The amount of money sent from South Africa to Zimbabwe will probably rise as a result of this action. International remittances as of December 31, 2022, totalled US$2.80 billion, up 16% from US$2.40 billion in 2021. Diaspora remittances made up US$1.66 billion of the total, an increase of 16% from the US$1.43 billion received in the same period of 2021. 40% of the overall diaspora remittances came from South Africa, with the UK coming in second place. As the story progresses, we predict that this number will rise due to the new SARB payment method.
The SARB further anticipated that the offering will be expanded to include non-bank service providers as soon as it was technically viable, according to the central bank. In the future, it's anticipated that banks including Capitec, Investec, Discovery, TymeBank, and Standard Chartered will connect with the new system. PayShap, according to SARB, is a low-value, real-time rapid payment platform designed to increase both consumer and small company financial inclusion. Consumers won't have to wait days for money from a transaction to show up in their accounts, according to Fundi Tshazibana, the deputy governor of the SARB. PayShap will allow South African consumers and small companies to transact in real-time for low-value amounts of up to R3,000.
The platform is a system that is obtainable commercially that was developed as part of the Reserve Bank's Quick Payments Initiative (RPP). Users can send money using a smartphone number (ShapID), which recipients can use to pay others directly without having to first cash out. Also, the new technique eliminates the need to memorize bank account numbers. According to the SARB, PayShap is more affordable than the current immediate money transfer systems used by banks and is intended for smaller transactions. The Reserve Bank intends to combine PayShap with well-known applications like WhatsApp so that it can eventually replace cash. PayShap will launch its initial rollout today ( 13 March 2023.)
In its continued attempts to modernize and enhance South Africa's payment ecosystem following international norms, SARB said PayShap represents a significant turning point. The authoritative body on international transactions, the Bank of International Settlements (BIS), reported in January that digital payments had experienced rapid growth over the previous ten years, with the volume and value of fast payments reaching all-time highs, which was made worse by the pandemic. Notwithstanding this, the BIS indicated that the public's demand for cash as a form of payment and a haven has not yet completely diminished.
One of the key factors influencing the expansion of the rapid payment industry is credit transfers and contactless card payments. Addressing the future of payment systems, the BIS stated that "there will probably be a diversity of payment methods and agreements," as opposed to retail payments being conducted in a single method. The capacity of computer systems or software to share and use information is known as interoperability, and it is essential for guaranteeing that payers and payees may make and receive payments without difficulty, regardless of their location, preferred payment method, or payment service provider.
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