Instant payments platform PayShap is coming to MTN’s Mobile Money (MoMo) platform through a partnership with Investec and Electrum.
The move will make MTN MoMo the first non-banking player to offer PayShap. It also addresses a “critical gap” in serving the unbanked population, MTN South Africa said in a statement on Wednesday.
Investec will act as the banking partner for the initiative, while Electrum is the technical partner overseeing the implementation of PayShap on the MoMo platform.
PayShap is a real-time, interbank digital payment service. It was born out of the payments industry-led Rapid Payments Programme to design a viable alternative to cash payments.
“By bridging the gap between traditional banking and mobile solutions, we aim to foster a financial ecosystem that serves all segments of society,” said Investec Bank Limited CEO Cumesh Moodliar.
Electrum, as the technical partner, brings expertise to ensure the seamless implementation of PayShap.
MTN said the initiative has borrowed ideas from successful global models, most notably Reliance Jio and UPI AutoPay in India, where “80% of transactions are executed through a similar rapid payment solution”.
“Jio’s integration with the UPI AutoPay facility in 2022, made it the first player in the telecommunications industry to go live with a unique e-mandate feature that was launched by the National Payments Corporation of India,” said Bradwin Roper, CEO of fintech services at MTN South Africa.
“This partnership promises to reshape the digital payments landscape in South Africa for both prepaid and contract subscribers.
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“We’re excited about the future of the PayShap solution in South Africa. Not only does it represent a significant milestone in the evolution of digital finance in South Africa, but it will also increase financial inclusivity, connecting more people to the safer and more efficient world of mobile payments,” Roper said.
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MTN said the availability of the PayShap solution on the MoMo platform is subject to all necessary approvals. African Bank remains the sponsor bank for the MoMo wallet.
On transaction fees, MTN said the functionality will be limited to people funding the MoMo wallet, so the transaction fees will be dependent on the bank from which the PayShap transaction originates. – © 2024 NewsCentral Media