Absa quietly changes default payment method from regular EFT to PayShap

mylesillidge

mylesillidge

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One of South Africa's biggest banks secretly changed a setting that could cost customers in fees

Absa has quietly changed the default option for payments to other banks from regular electronic funds transfers (EFT) to PayShap, which carries a R7.50 fee for transfers made to regular account numbers.

PayShap transactions on Absa are significantly more expensive than EFTs. Even on Absa’s entry-level account, ChatWallet, EFTs to bank accounts are R1 each. Many Absa accounts offer free EFTs.
 
“This notification includes an option to cancel and switch to EFT or another payment method.”

While it is true that the app displays a notification, it only warns the customer about the real-time nature of the transaction.
Click to expand...

Zero surprise that Absa's own spokesperson does not use Absa services and thus give incorrect/false information.
 
Absa also sneakily introduced a per-transaction fee for sending proof of payment via email or SMS. So I just stopped using that feature. They get plenty bank fees from me already.
 
I haven't seen this on my ABSA app, and i'm still not seeing it. Did i miss something?
 
This explains the push behind cashless in SA:

For a significant percentage of South Africa’s population, cash is still king. Around a quarter of banked South Africans and 16% of the population who are unbanked remain financially excluded from the modern banking system by transacting solely in cash.

PwC South Africa was selected by BankservAfrica, Africa's premier automated clearing house, to lead the way in implementing a groundbreaking new payment rail in the country.

PayShap, co-created by the banking industry, BankservAfrica, the Payments Association of South Africa and PwC, enables instant proxy payments more affordably and effectively than any other existing payment rail. The real-time payment platform was developed by a multidisciplinary team over four years to create a superior alternative to cash and modernise the payment landscape in the country.


It's a copy of the Brazilian and Indian systems. So a BRICS idea:

In 2024, India’s Unified Payments Interface (UPI), supported by the National Payments Corporation of India (NPCI) under the Reserve Bank of India, and Brazil’s Pix, developed by the Central Bank of Brazil, together accounted for over 60% of all real-time payment transactions globally. These open banking initiatives have set new global benchmarks for scale, accessibility, and innovation in the digital payments landscape. In contrast, South Africa’s PayShap is still in its early stages.

ozow.com

Unlocking PayShap: Lessons from UPI and Pix

Discover how South Africa’s PayShap can scale by learning from India’s UPI and Brazil’s Pix—two global leaders in real-time, inclusive digital payments.
ozow.com ozow.com

Banks want citizens to be cashless. That way, they can charge what they like for transactions. Cash attracts no transaction fees. PwC has vested interests in cashless. Tellingly, they won't reveal their directors on the internet:

Corporate Address
Our national office is located at the following address, where a list of directors is available for inspection:

Physical address
4 Lisbon Lane, Waterfall City,
Jukskei view, 2090

Postal address
Private Bag X36
Sunninghill, 2157


And the Private bag address gives a lot away. Only the government uses the Private Bag address. Which big BEE connection is there that is in the government?
 
Ja. Fk you absa... I noticed thay this weekend when i was making payments.
And it seems thats the default setting now.
 
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