South Africa’s real-time payments platform, PayShap, has expanded its functionality to include merchant payments, moving beyond its initial focus on peer-to-peer transfers. The platform, operated by BankservAfrica, launched a new feature allowing customers to pay for goods and services using QR codes, according to an announcement made on Monday. This development aims to increase the utility and adoption of the service, which has processed over 80 million transactions worth more than R50 billion since its launch in March 2023.
The introduction of merchant payments is seen as a critical step for PayShap to compete more effectively in South Africa’s digital payments landscape. Jan Pilbauer, managing executive for payments at BankservAfrica, stated that the platform needed to offer more than just person-to-person transfers to achieve its goal of reducing cash usage. "The launch of PayShap for merchants is a significant milestone in our journey to offer a comprehensive real-time payments ecosystem," Pilbauer said. The system allows merchants to generate a QR code at the point of sale, which customers can scan using their banking app to complete a payment.
PayShap’s expansion comes as South Africa’s financial sector seeks to modernise its payment infrastructure and promote greater financial inclusion. The platform was developed by the country’s major banks in collaboration with BankservAfrica, the national automated clearing house, and the South African Reserve Bank. Its initial peer-to-peer service allows for near-instant transfers between accounts at different banks using only a mobile number, with a fee of R1 for a payment that settles in under ten seconds.
Despite processing a high volume of transactions, the platform’s growth in user adoption has faced challenges. Industry observers have noted that consumer uptake has been slower than some initial projections, partly due to the entrenched use of cash and existing digital alternatives. The move into merchant payments is a direct response to this, intended to create a more compelling network effect where both consumers and businesses see value in using the system. Pilbauer acknowledged that building this ecosystem requires convincing both sides of the market simultaneously.
The platform’s development is also occurring within a broader regional context of rapid fintech innovation and shifting payment habits. Across Africa, mobile money services like M-Pesa have long demonstrated the power of integrated person-to-person and merchant payment networks. In South Africa, where card-based and electronic fund transfer (EFT) payments are more established, PayShap represents a bank-led initiative to create a faster, cheaper digital rail. Its success will depend on its ability to integrate seamlessly into the daily routines of both shoppers and store owners.
BankservAfrica has indicated that the merchant functionality is being rolled out in phases, with an initial group of retailers and service providers. The company plans to continue enhancing the platform, with future developments potentially including request-to-pay features and further integration with e-commerce platforms. The long-term vision is for PayShap to become a ubiquitous payment option, rivalling card payments and cash for low-value transactions.