On Monday, a new payment system will be launched in SA - what you need to know

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Grant

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On Monday, a new payment system will be launched – which could finally help wean South Africans off cash. Payshap – which is backed by the SA Reserve Bank and local banks - will allow South Africans to transfer money instantly between their phones, without a bank account.
You will be able to send money using vouchers and PIN codes, and recipients won't have to cash out that money first to perform another transaction. Payshap will allow them to make payments from their new balance to other people, and soon also via apps like WhatsApp.
The payments will focus on smaller transactions, and will be cheaper than current instant money transfers between banks. The Reserve Bank hopes it will eventually replace cash.
A similar payment system, also backed by a central bank, exploded in Brazil after its launch in 2020, with more than two-thirds of adults now using it.
Payshap was designed by BankservAfrica, an automated clearing house which is owned by the banks. For now, only the "big four" banks will offer Payshap wallets. Others will plug into the system later.
The service will be rolled out in two stages. The first stage will see the launch of the instant interbank clearing feature, allowing people to make payments to bank accounts or cellphone numbers.
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www.news24.com

On Monday, a new payment system will be launched in SA - what you need to know | Business

SA will launch its rapid payment programme, Payshap, on 13 March, enabling instant payments between different banks, even using platforms like WhatsApp.
www.news24.com www.news24.com
 
Terrible name aside, it's actually a pretty interesting system, one we'll be seeing a lot more of internationally. It's particularly useful for third world economies or countries with relatively out-dated banking systems and for those who can't afford bank fees and the like.
 
UrBaN963 said:
Terrible name aside, it's actually a pretty interesting system, one we'll be seeing a lot more of internationally. It's particularly useful for third world economies or countries with relatively out-dated banking systems and for those who can't afford bank fees and the like.
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Coincidentally the UK system which was quite similar (payments between phone numbers) called PayM was shut down this week. Primarily because normal bank transfers are instant and free and more secure.

The UK's Mobile Payment System - Paym

paym.co.uk paym.co.uk
 
A new way for all you okes addicted to hookers and blow to make payments?
 
For now, only the "big four" banks will offer Payshap wallets. Others will plug into the system later.
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So now we have to wait for Capitec to join so we can pay the poor who probably need it the most... :unsure:
 
hexagon said:
This is exactly a Central Bank Digital Currency (CBDC). I had no idea SA was heading in this direction, but it's not really that surprising, given the forces pushing this stuff. I would personally run a million miles in the opposite direction.
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It's not a CBDC.

It's a central bank backed eWallet.
 
Napalm2880 said:
It's not a CBDC.

It's a central bank backed eWallet.
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As a cash replacement (which is an explicitly stated goal), it is 95% of the way there. Programmability and control are baked in, whether used at first or not. This fully aligns with the CBDC trajectory - and it is a trajectory. Countries are at various points along the journey.
 
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