Real-time and instant payment systems, like the year-old PayShap, are effectively becoming the standard in the payments ecosystem.
This is according to Daniel Kaan, FNB CEO for core banking and merchant services, sharing insights of some of the trends in the digital payments landscape, at a media briefing this week.
In addition to locally-developed PayShap, Kaan noted India’s UPI and Brazil’s Pix among some examples of instant payment systems.
“These systems enhance business cash flow, they support the gig and on-demand economy, and align with customer expectations for immediacy,” he said.
“Digital wallets like Apple Pay, Google Pay and Garmin Pay, as well as solutions like AliPay, continue to grow, fuelled by increasing smartphone penetration and user-convenience.
“PayShap has proved to be an important payment mechanism to accelerate success in cash to digital migration and financial inclusion on our platform.”
Launched in March 2023, 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 (ShapIDs), such as a registered mobile number, or an e-mail address. In addition, PayShap provides a peer-to-peer e-wallet payment service.
The payments system is led by BankservAfrica – the payments partner and financial markets infrastructure provider to the financial services industry.
Although it initially launched with the big-four banks – Absa, First National Bank, Nedbank and Standard Bank – PayShap’s community has grown to include Capitec, Discovery Bank, Sasfin, Investec and Tymebank.
Despite cash still being viewed as a “trusted and preferred” medium for smaller transactions, FNB recorded a 360% increase in digital payment solutions over the last three years, jumping from R16.8 billion to R77 billion during the period.
According to the bank, it recorded R74 billion payments via card digital wallets among its customer base over the past year, while PayShap payments totalled R2 billion.
In addition, the bank revealed virtual card spend of R43 billion since the launch of this payment type. FNB introduced its virtual bank card in 2020, as part of its strategy to expand its digital payments ecosystem.
New connection
Meanwhile, the big-four bank yesterday announced it has teamed up with Pick n Pay, to offer additional rewards to their joint customers.
As of 1 November, qualifying FNB Private Banking eBucks customers can earn up to 30% of their spend back in eBucks when using ASAP!, Pick n Pay’s on-demand delivery app.
Sizwe Nxedlana, CEO of FNB Private Segment, comments: “This partnership represents the next step in our ongoing journey to help South Africans get more value from their everyday spending.
“Pick n Pay is an iconic South African brand, and we’re excited to be partnering with them to make life a little easier for our customers, while supporting the growth strategy Pick n Pay has put in place.”
Pick n Pay CEO Sean Summers adds: “Joining forces with FNB is an absolute belief and confidence in our brand. We know how important tangible rewards are as consumers come under financial pressure. We’re thrilled to extend more rewards to eBucks’ six million active customer base.”
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