Reserve Bank wants to unveil South Africa-only bank card to take on Visa and Mastercard

Nerfherder

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Banks will charge because they will have work and infrastructure to pay for to integrate with it....

I get the concept of the money not going overseas, and its laudable, but for the loss of usability my honest response is a straight up "No Thanks".
The whole point is that it would cost everyone less. People would only choose the card if it cost less.

Its not that its laudable its that it would open the local economy quite a bit... and at least perhaps cause VISA & Mastercard to be more competitive.

Its was actually attempted before and abandoned due to the situation at the time. I'd actually like to read up on that and why they didn't do it.
Right now the feeling is that its got a better chance of working and then become a standard for Africa.

Its insane to think that every time we spend money some of it goes out the country.
 

Nerfherder

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I don't think that they have quite thought it through. It costs serious money to emulate VISA or Mastercard, just in systems and security, it's in the billions of dollars per annum.
If it didn't, and doing so offered such a huge commercial advantage, then the local banks would have done it a long time ago.

This government doesn't even have the ability to meet its own deadlines for simple tasks like the digital migration of analogue spectrum.
To be fair this is being considered by people with way more knowledge than you though.
Its not some ANC fart bag, both the reserve bank and bankserv have taken this seriously.
Its got very little to do with the ANC government.

The banks are trying things like this all the time but only really works with the co-operation of all the banks in the region. Every bank in SA has their own version of moving money that only really works at that bank (FNB pay etc).
 

TheRoDent

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So, basically trying to pre-empt a Postbank ?

Hello, Tito, you were in charge there at the Reserve bank....
 

Swa

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To be fair this is being considered by people with way more knowledge than you though.
Its not some ANC fart bag, both the reserve bank and bankserv have taken this seriously.
Its got very little to do with the ANC government.

The banks are trying things like this all the time but only really works with the co-operation of all the banks in the region. Every bank in SA has their own version of moving money that only really works at that bank (FNB pay etc).
Going by their track record I'm not very optimistic. It still takes 2 days in some cases to do an EFT. How long have we been hearing about Debicheck? Take one thing at a time and fix it before moving on.
 

envo

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lol, and people are worried about George Soros and Bill Gates implanting chips in them with the vaccine, but will most likely get a card like this so that they're even more controlled than ever
 

envo

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Going by their track record I'm not very optimistic. It still takes 2 days in some cases to do an EFT. How long have we been hearing about Debicheck? Take one thing at a time and fix it before moving on.
Transferring money from an international destination to South Africa is often faster than an EFT bank to another bank within it's borders. Makes you think ne
 
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alloytoo

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In NZ we have EFTPOS.

Banks issue basic magnetic strip cards. 99% of vendors will accept the card though an EFTPOS machine which also processes visa and MasterCard, because its instantly approved and has zero risk. Some vendors will even give you cash out. (Mostly super markets).

The vendor Rents the machine, but unlike credit cards there is no transaction fees, so they will accept it for almost any value.

Credit card, pay wave, apple and Google pay do attract vendor fees so smaller vendors often refuse to accept them.
 

Milano

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I believe Visa and MasterCard would offer extremely attractive incentives to prevent this happening. For this reason it would take a dedicated chain of extremely upstanding individuals in high places to make this a reality. For that reason it will often be spoken of but will never happen in the South African environment.
 

cr@zydude

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Local banking ala VBA. Nee Blixem straal...

Those VBA cards were probably Visa or Mastercard, and I doubt them being RuPay or "SA Pay" would have been relevant. Similarly I don't see how any other SA bank issuing an "SA Pay" card would change their risk profile.
 

RonSwanson

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To be fair this is being considered by people with way more knowledge than you though.
Its not some ANC fart bag, both the reserve bank and bankserv have taken this seriously.
Its got very little to do with the ANC government.

The banks are trying things like this all the time but only really works with the co-operation of all the banks in the region. Every bank in SA has their own version of moving money that only really works at that bank (FNB pay etc).
If they had way more knowledge than me then they would agree to scrap the idea and if they ever do decide to implement it, it would fail. MC and VISA are not organisations to be trifled with.
 

RonSwanson

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The whole point is that it would cost everyone less. People would only choose the card if it cost less.

Its not that its laudable its that it would open the local economy quite a bit... and at least perhaps cause VISA & Mastercard to be more competitive.

Its was actually attempted before and abandoned due to the situation at the time. I'd actually like to read up on that and why they didn't do it.
Right now the feeling is that its got a better chance of working and then become a standard for Africa.

Its insane to think that every time we spend money some of it goes out the country.
No it won't, transaction cost is closely linked to volume. They simply would not have the critical mass to make it cheaper. And if they do (hypothetically), then it will be swallowed up by the Reserve bank, lining cadres pockets. If they don't, which is the more likely case, then it will be massive bailouts from the taxpayer every year.
 

Milano

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No it won't, transaction cost is closely linked to volume. They simply would not have the critical mass to make it cheaper. And if they do (hypothetically), then it will be swallowed up by the Reserve bank, lining cadres pockets. If they don't, which is the more likely case, then it will be massive bailouts from the taxpayer every year.
If anyone knows SA it would definitely end up being more expensive one way or another.
 

Vrotappel

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Fees ?
It costs money to use these schemes.

I think people would still keep Mastercard & Visa though to make sure you can pay for stuff overseas.
Its an interesting concept though for day to day purchases. Every time you use your card in SA some of that money goes to one of these overseas institutions.
I'd rather give money to Visa than the corrupt ANC.
 

Nerfherder

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No it won't, transaction cost is closely linked to volume. They simply would not have the critical mass to make it cheaper. And if they do (hypothetically), then it will be swallowed up by the Reserve bank, lining cadres pockets. If they don't, which is the more likely case, then it will be massive bailouts from the taxpayer every year.
You are misunderstanding - they wont proceed with this unless its cheaper. There is no reason to introduce something like this other than to cut costs. There wont be buy in from banks, vendors or the public if its not drastically cheaper than getting a mastercard/VISA.

I see many people in a flap here not actually understanding what is being proposed.
 

RonSwanson

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You are misunderstanding - they wont proceed with this unless its cheaper. There is no reason to introduce something like this other than to cut costs. There wont be buy in from banks, vendors or the public if its not drastically cheaper than getting a mastercard/VISA.

I see many people in a flap here not actually understanding what is being proposed.
I am misunderstanding nothing.
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Where do you read "they wont proceed with this unless its cheaper"?
 
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