{"id":485293,"date":"2023-03-26T15:01:17","date_gmt":"2023-03-26T13:01:17","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=485293"},"modified":"2023-03-26T15:02:40","modified_gmt":"2023-03-26T13:02:40","slug":"payshap-should-be-free","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/investing\/485293-payshap-should-be-free.html","title":{"rendered":"PayShap should be free"},"content":{"rendered":"

Former FNB CEO and venture capitalist Michael Jordaan said that prohibitively high transaction costs will stifle the adoption of PayShap.<\/p>\n

PayShap is a new payment system launched by the South African Reserve Bank (SARB) and BankservAfrica, a company that processes electronic transactions.<\/p>\n

PayShap is intended to displace cash from the economy by allowing for instant transfers, which the receiver can verify in real-time.<\/p>\n

The service allows users to make payments using phone numbers, known as ShapIDs, rather than relying on bank account numbers.<\/p>\n

Fundi Tshazibana, a deputy governor of the South African Reserve Bank (SARB), said that PayShap is an opportunity to reduce transaction costs and build trust in digital payment methods.<\/p>\n

Tshazibana said that small transactions have historically been cash-driven. In future, PayShap could be used instead of cash for small transactions such as taxi commutes.<\/p>\n

The goal of PayShap is to make payments safer, faster, and more cost-effective than had previously been possible.<\/p>\n

PayShap transactions are currently capped to a maximum of R3,000.<\/p>\n

\"\"<\/a>

Fundi Tshazibana, deputy governor of the South African Reserve Bank<\/p><\/div>\n

The cost of transacting<\/h2>\n

Jordaan said facilitating rapid digital payment is \u201ccool,\u201d but he hoped the big banks would make transactions free to mimic cash and encourage the adoption of the service.<\/p>\n

\u201cBrazil\u2019s Pix, which served as inspiration for PayShap, is free. India\u2019s UPI is free. Singapore\u2019s PayNow is free,\u201d Jordaan highlighted.<\/p>\n

However, in South Africa, using the service can carry significant costs which can hamper the uptake among cash-strapped communities.<\/p>\n

\u201cIt seems the big banks have priced this from R1 to R45. Of course, R45 will never beat a free, cash payment, which is really sad for PayShap adoption,\u201d Jordaan said.<\/p>\n

Standard Bank, Absa, Nedbank, and FNB are the first cohort of banks to offer PayShap transactions, with more coming soon.<\/p>\n

The PayShap system is a product of collaboration between the banks, but they are allowed to compete with one another on pricing.<\/p>\n

While banks fiercely compete with each other, \u201cin payments we knew that we had to collaborate\u201d,\u00a0 said Rufaida Ranoobhai, head of the South African payment division at Standard Bank.<\/p>\n

Ranoobhai said that PayShap allows for collaboration and agreement on procedures while creating spaces in the payments ecosystem where the banks can compete.<\/p>\n

Nedbank is currently charging R0 for PayShap transactions until the end of April, meaning only FNB and Nedbank currently meet Jordaan\u2019s standard of free transactions.<\/p>\n

All the roleplayers at the PayShap launch event emphasised that adjustments would be made to the offering based on how users engage with the platform.<\/p>\n

Dayalan Govender, managing executive of solution innovation at Nedbank, said that they do not want prohibitive pricing to stand in the way of the adoption of PayShap.<\/p>\n

He said that the bank would gain valuable data about how individuals spend cash that could help deepen their relationship with clients.<\/p>\n

MyBroadBand conducted an analysis<\/a><\/strong>\u00a0of the prices the banks are charging for PayShap transactions.<\/p>\n

\n
\n\n\n\n\n\n\n\n\n
PayShap fees<\/th>\n<\/tr>\n
PayShap transaction size<\/th>\nAbsa<\/th>\nFNB<\/th>\nNedbank<\/th>\nStandard Bank<\/th>\n<\/tr>\n<\/thead>\n
\u2264 R100<\/td>\nR2.50<\/td>\nFree<\/span><\/td>\n\n
    \n
  • R1 to ShapID<\/span><\/li>\n
  • R7.50 to account<\/li>\n<\/ul>\n<\/td>\n
R7.50<\/td>\n<\/tr>\n
R100.01\u2013R200<\/td>\nR6.00<\/span><\/td>\n<\/tr>\n
R200.01\u2013R1,000<\/td>\nR7.50<\/td>\n<\/tr>\n
R1,000.01\u2013R3,000<\/td>\nR45.00<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n

Now read:\u00a0Cheapest bank accounts in South Africa<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

Bank Zero chair, former FNB CEO, and venture capitalist Michael Jordaan said that prohibitively high transaction costs will stifle the adoption of PayShap.<\/p>\n","protected":false},"author":341127,"featured_media":468629,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[35,6204,23511],"class_list":["post-485293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-headline","tag-michael-jordaan","tag-south-african-reserve-bank-sarb"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/485293"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341127"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=485293"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/485293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/468629"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=485293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=485293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=485293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}