MTN South Africa has teamed up with Investec and Electrum to roll out PayShap, a real-time, low-value interbank digital payments service, on its Mobile Money (MoMo) platform.
The collaboration aims to offer users an instant and cost-effective mobile payment system, making MoMo the first non-banking player to provide PayShap, thus addressing a crucial gap in serving the unbanked population.
PayShap, launched earlier this year by the South African Reserve Bank, enables instant digital payments between banks within 60 seconds. Its integration with MoMo promises MTN users a faster and potentially more cost-effective transaction experience.
Investec serves as the banking partner, while Electrum provides the technical expertise. Inspired by successful global models like Reliance Jio and UPI AutoPay in India, where 80 percent of transactions utilize a similar rapid payment solution, the collaboration aims to reshape South Africa's digital payments landscape for both prepaid and contract subscribers.
Bradwin Roper, CEO of Fintech at MTN SA, expressed enthusiasm about the collaboration, stating, “This strategic collaboration will empower our users, especially the unbanked community, with unprecedented accessibility and convenience.” PayShap's ability to facilitate transactions without traditional bank account details offers a more accessible alternative.
PayShap, a joint effort between BankservAfrica, the Payments Association of South Africa, and the Banking Association of South Africa, has gained rapid traction. Within six months of its launch, it surpassed one million transactions and is now available through most major South African banks.
MTN views PayShap as a significant milestone for digital finance in South Africa. Roper added, “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.”
Investec, as the banking partner, underscores its commitment to bridging the gap between traditional banking and mobile solutions. “By bridging the gap between traditional banking and mobile solutions, we aim to foster a financial ecosystem that serves all segments of society,” said Cumesh Moodliar, CEO of Investec Bank.
Electrum, the cloud-based payments solutions provider, will ensure the seamless integration of PayShap with the MoMo platform.
Currently, PayShap is available through most banks, including Absa, Nedbank, Standard Bank, FNB, Capitec, and Discovery Bank.
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