Ina Opperman

By Ina Opperman

Business Journalist

PayShap is now live offering an alternative to cash

Consumers who do not want to carry cash around anymore will now have a new alternative.

The app can only be accessed through existing banking channels and is currently available at Absa, FNB, Nedbank and Standard Bank with more banks expected to go live in the coming months.

PayShap has no waiting periods, which makes it easy for consumers to pay and receive money in amounts of up to R3 000 per transaction instantly between participating banks without sharing bank account details.

“While the focus now is on person-to-person payments, every South African, including small business owners, merchants and commercial businesses, stand to benefit from this service which becomes a viable alternative to cash,” Mpho Sadiki, head of real-time payments at BankservAfrica, says.

Consumers can use the app to pay back friends or family, pay for items on community marketplaces, hair salons, home maintenance services, car washes, restaurants and transport.

“PayShap is automatically accessible through bank channels such as mobile and internet banking. We anticipate that in the future, banks will innovate and opt to enable additional digital access channels,” Sadiki says.

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PayShap is released to the market in two stages. The launch today (13 March 2023) was the first stage of the PayShap instant clearing feature that gives the option to pay-by-account (using account details) or pay-by-proxy (using a unique identifier such as a cell phone number (ShapID).

In the second stage, an additional request-to-pay function will be added to make it possible for someone to initiate a request for payment and receive money securely and immediately in their bank accounts.

“As a Pan-African bank, we are committed to making financial services more inclusive and accessible to our customers. Absa’s contribution to South Africa’s payment modernisation is significant and we are extremely proud to be part of delivering yet another market-first payment solution. We are delighted to be part of the first group of banks to roll out PayShap,” says Charl Smedley, Absa’s managing executive for payments.

Ravi Shunmugam, CEO of FNB EFT Product House, says as a founding member of this modernised and inclusive South African payments infrastructure, FNB is excited to provide its customers with more real time payment options.

“PayShap will help FNB customers move from cash to digital and it is the first of many customer solutions for real-time payments and the transformation of the payments infrastructure, aligning to our payments modernisation and digital platform strategy.”

Dayalan Govender, managing executive of solution innovation at Nedbank, says the launch of PayShap is a demonstration of the commitment by the industry as a whole to ensure accessible payment services to all South Africans.

Rufaida Banoobhai, head of Payment SA, at Standard Bank, also expressed Standard Bank’s pride to have worked alongside South Africa’s other leading banks to launch this game changer for local payments.

“It is an incredible milestone to reach as we deliver core collaborative infrastructure for all South Africans. Now we are looking forward to use it to give our current and prospective clients the best payment services in the world.”

Details are available on the PayShap website.