South Africa plans new banking payment system

Later this year, the South African Reserve Bank will introduce its new Rapid Payments Programme (RPP).

In layman’s words, it will let users interact in an almost immediate manner by making real-time payments using straightforward identifiers like email addresses or mobile numbers. Additionally, processing times for payments are anticipated to be much accelerated.

“The highly anticipated modernisation of the country’s inter-banking payment system will not only boost financial inclusion but make it much easier, and cheaper, for consumers to pay both merchants and fellow consumers whilst boosting e-commerce sales,” said Andrew Springate, chief executive of financial gateway service provider PAYM8.

The project is now being implemented, and unless unexpected events occur, it should be put into pilot later this year. Users of the system will be able to request payment from other users digitally in a straightforward and economical manner, supporting the South African Reserve Bank’s (SARB) march toward digital transformation, he said.

RPP not only benefits underbanked customers who still use cash as their primary form of payment, but it also modernises the market by opening up fresh, exciting options for retailers, SMEs, and e-commerce operators.