South Africa's government is pushing for a cashless society with a new plan to create a free digital payment platform for residents. Operation Vulindlela's second phase focuses on digital transformation, including the introduction of digital identification and payment systems. The South African Reserve Bank (SARB) is also finalizing a regulatory review that could allow non-banking institutions to process payments without a banking intermediary.
South Africa’s government has drawn up a lofty plan to develop a free digital payment platform for residents to reduce cash transactions in the country as part of Operation Vulindlela’s second phase., proposes introducing a free digitised payment system for the country’s residents.
“The main drive of the digital transformation reform will be to introduce digital identification and digital payments systems. Further details will be provided at the launch of Operation Vulindlela Phase Two,” he said.that the South African Reserve Bank is finalising a regulatory review that could allow non-banking institutions, like digital payment platforms, to make and accept payments without a banking intermediary.
Ultimately, the SARB wants banks and non-banks to compete for all payment services across the payment chain under the same frameworks. This is due to factors like a lack of trust in banks, the fees associated with card transactions, and merchants’ lack of support for card payments in the informal economy.BankservAfrica’s launch of PayShap, in partnership with commercial South African banks, has contributed to the country’s adoption of digital payments.
Standard Bank has seen a substantial increase in real-time payments through its digital platforms, driven by the uptake of PayShap. “Even our other immediate interbank transactions, beyond PayShap, have continued to rise, highlighting a growing preference for instant payments among our customers,” she added.
DIGITAL PAYMENT SOUTH AFRICA CASELESS SOCIETY OPERATION VULINDELA SOUTH AFRICAN RESERVE BANK
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