The South African Reserve Bank (SARB) plans to acquire a 50% stake in the payments company BankservAfrica.
BankservAfrica, which is the largest automated payments clearing house in Africa that clears and process billions of card, cash and account-based transactions annually, announced this on Monday.
The deal intends to transition BankservAfrica into a national Payments Utility through a collaboration with commercial bank shareholders.
A foundational offering of the envisioned Payments Utility is PayShap, a service launched by BankservAfrica in March 2023 that allows South Africans to make instant payments. Growing rapidly with more than 1 million transactions per day, PayShap enables more accessible, convenient and secure payments for everyday transactions.
“Whilst still subject to conclusion of the detailed transaction agreements and regulatory approvals, this strategic partnership seeks to bolster efforts to modernise South Africa’s national payment system, making the payment system more secure, inclusive and efficient,” it said.
Further information on the partnership will be shared after regulatory processes conclude.
Stephen Linnell, the CEO of BankservAfrica, said, “Our role has always been to provide essential payment services to financial institutions. This consequential partnership between the company, its commercial bank shareholders and the SARB, signifies both a continuation and expansion of that role as we focus more deliberately on financial inclusion through affordable access to modern payment capabilities.”
The SARB yesterday confirm this move as being in line with its National Payment System Framework and Strategy or NPS Vision 2025.
NPS Vision 2025 aims to improve the safety, efficiency and accessibility of the national payment system (NPS) and outlines nine goals that will advance and future-proof the domestic ecosystem. These goals include promoting competition and innovation, financial inclusion, regional integration, cost effectiveness, interoperability and financial stability and security..
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