GoTyme Bank, the digital banking joint venture between the Philippines’ Gokongwei Group and Singapore-based Tyme, has begun offering free instant transfers via South Africa’s real-time payments system, PayShap, as it seeks to carve out a larger presence in a market dominated by cash and incumbent banks. The move, effective this month, eliminates the fee typically levied for instant transactions on the platform, positioning the bank against both traditional and other digital competitors that charge for the service.

The fee waiver applies to PayShap transfers made through the GoTyme app, whether sending to another bank or to an account at the same institution. PayShap, operated by BankservAfrica, allows for near-instantaneous transfers between participating banks using a mobile number or a chosen ‘ShapID’, making it a direct competitor to older, slower interbank payment methods. While GoTyme has not disclosed how it will fund the cost of these transactions, the promotion is viewed as a customer acquisition tool aimed at users frustrated by transaction fees.

This strategy directly challenges other digital banks in South Africa, such as TymeBank, which charges R8.50 for a PayShap transfer, as well as traditional retail banks. GoTyme Bank’s chief executive, Nathaniel Wade, framed the initiative as a natural step for a bank that has offered free electronic funds transfers (EFTs) since its launch. "We see PayShap as the evolution of EFTs, so free PayShap transfers are a natural and necessary extension," Wade said. The bank is betting that absorbing these costs will drive growth in its transaction volumes and overall customer base.

The push comes amid a broader, albeit gradual, shift away from cash in South Africa’s informal ‘kasi’ economy, which includes townships and rural areas. A recent industry report noted that digital payments are gaining ground as small businesses seek faster, safer, and more efficient ways to operate, reducing the risks associated with handling physical cash. PayShap and similar instant payment rails are seen as key infrastructure for this transition, offering a digital alternative that can be more accessible than card payments for some merchants and customers.

GoTyme Bank entered the South African market in 2022, following the earlier launch of its sister company, TymeBank. Its model combines digital account opening through physical kiosks in partner retail stores with a digital-only interface for daily banking. The free PayShap offer is the latest in a series of aggressive pricing moves by digital challengers in a market where customer loyalty to the ‘Big Four’ banks—Absa, FirstRand, Nedbank, and Standard Bank—has historically been strong.

Whether such fee-free propositions are sustainable long-term remains an open question in the industry. While they attract customers, the underlying transaction costs for the bank remain, potentially requiring cross-subsidisation from other products or future pricing adjustments. For now, GoTyme’s play appears focused on building critical mass and transaction velocity in a competitive sector where convenience and cost are primary battlegrounds.