SARB Acquires Stake in BankservAfrica to Advance Cashless Payments in South Africa

SARB and BankservAfrica Join Forces to Drive Cashless Payments Revolution

The South African Reserve Bank (SARB) has announced its intention to acquire a 50% stake in BankservAfrica as part of a landmark initiative to propel South Africa towards a cashless economy. This partnership, developed in collaboration with South Africa’s major commercial banks, marks a significant milestone in transforming the nation’s digital payments infrastructure and enhancing financial inclusivity.

BankservAfrica’s role in South Africa’s financial ecosystem as a clearing house has long supported essential payment services for financial institutions. The merger aligns with SARB’s broader vision to establish BankservAfrica as a national payments utility, providing a modern, inclusive, and secure platform for digital transactions.

Modernizing Payments with PayShap

A central component of this initiative is PayShap, a real-time, low-value interbank payment service that enables instant and secure transactions. Launched in March 2023 by BankservAfrica, PayShap has quickly grown in popularity, processing over one million transactions daily. Its adoption across major banks such as Absa, FNB, Capitec, Nedbank, Standard Bank, and Discovery Bank has demonstrated its accessibility and appeal to South African consumers.

Since April 2024, MTN has integrated PayShap into its Mobile Money (MoMo) platform, expanding the service’s reach. The payment utility has seen over 74 million transactions worth R46 billion processed through PayShap, underscoring South Africans’ appetite for convenient digital payment options.

Reducing Cash Dependency

Although digital payment methods like PayShap are growing, cash still dominates South African transactions, with nine out of ten purchases paid in cash. Many consumers, particularly those within informal and small businesses, continue to prefer cash due to high banking fees, card acceptance issues, and limited access to electronic payment methods.

This reliance on cash presents challenges for SARB, which is working to shift South Africans to safer, cashless payment options. Governor Lesetja Kganyago has emphasized the importance of reducing dependency on physical cash, advocating for secure, digital alternatives. The SARB’s Digital Payments Roadmap projects that, by 2025, more South Africans will gain confidence in electronic payments, supported by improved education and access to affordable digital solutions.

The Future of Digital Payments in South Africa

This acquisition aims to address the need for a more accessible, efficient, and secure national payment system, which SARB envisions will promote trust and affordability in digital payments across the country. Once regulatory approvals and transaction details are finalized, BankservAfrica is expected to play an even larger role in South Africa’s journey to a cashless society, providing everyday South Africans and businesses with accessible, modern financial services.