MTN South Africa, Investec and Electrum have signed a partnership deal that will see the introduction of the PayShap rapid payments system on the Mobile Money (MoMo) platform.
Launched a year ago, PayShap enables instant digital payments between banks via a real-time clearing system that processes transactions within 60 seconds.
It also seeks to make it possible to conduct transactions without the need for bank account details. This is done through public and private identifiers, such as a registered mobile number, or an e-mail address. In addition, PayShap provides a peer-to-peer e-wallet payment service.
The industry-wide collaboration is led by automated payments clearing organisation BankservAfrica, in partnership with the Payments Association of South Africa and Banking Association of South Africa.
According to MTN SA, MoMo is the first non-banking player to offer PayShap.
“We are thrilled to pioneer the integration of PayShap on MoMo, redefining the landscape of mobile payments and helping to drive financial inclusion,” says Bradwin Roper, CEO of fintech at MTN SA.
“This strategic collaboration will empower our users, especially the unbanked community, with unprecedented accessibility and convenience.”
Drawing inspiration from successful global models, such as Reliance Jio and UPI AutoPay in India − where 80% of transactions are executed through a similar rapid payment solution − this partnership promises to reshape the digital payments landscape in SA for prepaid and contract subscribers, according to MTN.
“Investec is proud to be the banking partner for this initiative. By bridging the gap between traditional banking and mobile solutions, we aim to foster a financial ecosystem that serves all segments of society,” says Cumesh Moodliar, CEO of Investec Bank.
Cloud-based payments solutions provider Electrum, as the technical partner, will ensure the seamless implementation of PayShap.
“Electrum is proud to have contributed to this transformative project, showcasing the important role cloud payments technology must play towards SA’s payments modernisation efforts,” says Dave Glass, Electrum CEO and co-founder.
According to MTN, the e-wallet service has shown 200% year-on-year user growth during the past two years, with over nine million registered MoMo customers in SA.
“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,” concludes Roper.
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