The adoption of PayShap
There has been robust adoption of SARB’s rapid payment programme, PayShap, according to the banks that currently facilitate the payment service. However, barriers such as high fees still prevail, and banks like Capitec, South Africa’s biggest digital banker, have yet to facilitate the service for their 20 million customers. Because of this, PayShap has far from saturated the payment landscape of South Africa. What should still be considered for PayShap to replace cash?
Each country has its nuances and incentives for pursuing a digital cashless economy, however there are some clear parallels to maximise the chance of success. Looking beyond the early adoption and traction, one needs to consider the continuous improvements in key areas to foster the longevity of solutions and adapt during the journey to bank the majority.
Firstly, network availability in informal and rural areas is a common issue limiting the ability to transact without cash. Uniformity in the pricing between banks will also help build trust and confidence in a sceptical user base.
Innovation beyond just payments to widen the ecosystem and bring new products and solutions will help accelerate instant-payments as the default choice of payment in the country. Things like paying with proxies, or request to pay, and other functionality which would make daily transacting easier are good entry innovations.