The South African Reserve Bank (SARB) will soon launch a new payment service called PayShap, aiming to expedite the transition towards a cashless society in the country.
The Rapid Payment Programme (RPP) enables customers to make transactions instantly without needing a bank account number.
The payment service will be similar to an electronic funds transfer. However, users will be able to use instant messaging applications like WhatsApp to exchange funds. Payments will be made to a bank account or a proxy, such as a mobile phone number, linked to an account or wallet at any bank. Payments can be made from a mobile phone at a low fee to the consumer, in real-time, and is available 24/7.
Neha Kumar – Head of Product Partnerships at Stitch
Cash usage is expected to decrease while cashless transactions become more accessible and prevalent.
In March 2023, the service will have a soft launch with four pilots, and it will be gradually implemented throughout the year.
Initially, PayShap will only allow transactions of small values up to a maximum of R3,000, as per Kumar’s statement.
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