MTN SA Signs Partnership To Launch PayShap

MTN South Africa has joined forces with Investec and Electrum to offer PayShap, a real-time, low-value interbank digital payments service, on its Mobile Money (MoMo) platform.

The collaboration aims to provide users with an instant and cost-effective mobile payment system, with MoMo becoming the first non-banking player to offer PayShap, which will address a critical gap in serving the unbanked population.

Launched by the South African Reserve Bank earlier this year, PayShap facilitates instant digital payments between banks within 60 seconds. This integration with MoMo provides MTN users with a faster and potentially more cost-effective way to conduct transactions.

In a joint statement issued on Wednesday, the companies announced that Investec is serving as the banking partner, while Electrum is the technical partner. They highlighted that their collaboration, which was inspired by successful global models such as Reliance Jio and UPI AutoPay in India, where 80 percent of transactions are executed through a similar rapid payment solution, aims to reshape the digital payments landscape in South Africa for both prepaid and contract subscribers.

Jio made headlines in 2022 by integrating with the UPI AutoPay facility, becoming the first player in the telecommunications industry to go live with a unique e-mandate feature launched by the National Payments Corporation of India.

“This strategic collaboration will empower our users, especially the unbanked community, with unprecedented accessibility and convenience,” Bradwin Roper, CEO of Fintech at MTN SA, stated.

By enabling transactions without the need for traditional bank account details, PayShap offers a more accessible alternative.

PayShap, a collaborative effort between BankservAfrica, the Payments Association of South Africa, and the Banking Association of South Africa, has rapidly gained traction. Within six months of its market launch, it surpassed one million transactions and is now available through most major South African banks.

MTN is confident that PayShap represents a significant milestone for digital finance in South Africa.

“We’re excited about the future of the PayShap solution in SA,” Roper concluded. “Not only does it represent a significant milestone in the evolution of digital finance in SA, but it will also increase financial inclusivity, connecting more people to the safer and more efficient world of mobile payments.”

Investec, as the banking partner for the initiative, emphasizes its commitment to bridging the gap between traditional banking and mobile solutions. “By bridging the gap between traditional banking and mobile solutions, we aim to foster a financial ecosystem that serves all segments of society,” said Cumesh Moodliar, CEO of Investec Bank. Electrum, the cloud-based payments solutions provider, will ensure the smooth integration of PayShap with the MoMo platform.

PayShap is already available through most banks, including Absa, Nedbank, Standard Bank, FNB, Capitec, and Discovery Bank.