Sylvia Duruson
In a move aimed at enhancing financial inclusivity and accessibility, MTN South Africa has partnered with Investec and Electrum to introduce PayShap, a real-time, low-cost interbank digital payments service, on its Mobile Money (MoMo) platform. This collaboration marks a significant milestone for digital finance in the country, as MoMo becomes the first non-banking entity to offer PayShap, bridging the gap for the unbanked population.
PayShap, launched earlier this year by the South African Reserve Bank, facilitates instant digital payments between banks within 60 seconds. By integrating PayShap into MoMo, MTN users gain access to a faster and potentially more cost-effective way to conduct transactions. Investec serves as the banking partner, while Electrum provides the technical expertise for seamless integration.
Inspired by successful global models, such as Reliance Jio and UPI AutoPay in India, where 80 percent of transactions are executed through a similar rapid payment solution, this collaboration aims to reshape the digital payments landscape in South Africa for both prepaid and contract subscribers. Jio made headlines in 2022 by integrating with the UPI AutoPay facility, becoming the first telecommunications player to go live with a unique e-mandate feature launched by the National Payments Corporation of India.
Bradwin Roper, CEO of Fintech at MTN SA, expressed enthusiasm for the strategic collaboration, stating, “This will empower our users, especially the unbanked community, with unprecedented accessibility and convenience.” By enabling transactions without the need for traditional bank account details, PayShap offers a more accessible alternative.
PayShap, a collaborative effort between BankservAfrica, the Payments Association of South Africa, and the Banking Association of South Africa, has gained rapid traction, surpassing one million transactions within six months of its market launch. It is now available through most major South African banks, including Absa, Nedbank, Standard Bank, FNB, Capitec, and Discovery Bank.
Cumesh Moodliar, CEO of Investec Bank, emphasized the bank’s commitment to bridging the gap between traditional banking and mobile solutions, fostering a financial ecosystem that serves all segments of society. Electrum, as the cloud-based payments solutions provider, will ensure the smooth integration of PayShap with the MoMo platform.
Roper concluded, “We’re excited about the future of the PayShap solution in SA. Not only does it represent a significant milestone in the evolution of digital finance in SA, but it will also increase financial inclusivity, connecting more people to the safer and more efficient world of mobile payments.”
