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Driving Adoption of Instant Payments: How PayShap is Transforming South Africa’s Financial Landscape
September 12, 2025Imagine running a business where you can quickly send customers a payment request and receive your payment within seconds. Perhaps you have to deal with an emergency and can send money to a family member asap. This is the reality of real-time payments.
We’re amid a global shift towards real-time payments, with countries like Brazil and India leading the way. South Africa will not be left behind, which is why today’s guide is all about introducing the latest solution to real-time payments for individuals and SMB’s.
PayShap is the innovative solution South Africans and business owners have been waiting for to enhance financial inclusion and streamline transactions. We will explore what PayShap is, how it can benefit businesses, and the latest global trends.
Whether you want to offer customers a new way to pay or ensure same-day payments to your staff, PayShap is the key to unlocking real-time payments.
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Real-time payments definition: What are real-time payments?
Before we get into PayShap, it’s important to understand exactly what real-time payments are.
Real-time payments (RTP) are electronic funds transfers that allow for almost immediate money transfers between bank accounts. Other traditional payment methods usually take days to process.
Since RTPs take only a few seconds to clear, the risk of delayed funds, reversals, or returns is reduced. It enhances efficiency, improves cash flow, and streamlines business-to-business payments.
Introducing PayShap as a solution for real-time payments
PayShap is a payment solution tailored to the South African market that allows instant and convenient payments. It not only streamlines the payment process but also enhances the overall experience for merchants and consumers.
Launched in 2023, PayShap is a real-time payment system developed by BankservAfrica in collaboration with the Payments Association of South Africa and the Banking Association of South Africa.
As of now, PayShap has processed R100 billion, facilitated 136 million transactions, and registered 4.5 million ShapIDs.
Limitations and growth of PayShap in South Africa
In the past, PayShap was only able to process payments upwards of R3,000. This changed in August 2024. BankservAfrica announced a mandatory increase in PayShap transaction limits from R3,000 to R50,000.
How does PayShap work?
PayShap allows users to receive and send money instantly and directly into a bank account using a ShapID, Shap Name, and bank account details. It works through any mobile banking app where you can register your ShapID, which can be your cellphone number or a unique ID. This eliminates the need to share bank account details, making payments quicker, convenient, and more secure.
You can use PayShap to deposit money into an account or make payments to a ShapID (mobile number), such as sending money to family or peers, or paying salaries and suppliers. Then, to receive money, merchants can send customers/consumers a payment request to fulfil an order or pay outstanding fees, for example.
The product manager for payments says that ERP and accounting won't be part of the initial integration. So I think we can be a bit more vague here. Should be safe enough to go with that it'll be available through providers like Netcash, and in the near future, through ERP and accounting, payroll integrations like Sage etc ?
Global trends that back up PayShap: Pix & UPI
If you ever needed more convincing that PayShap is the answer to real-time payments, then all you have to do is look at already successful real-time payment systems. Let’s break down two tried-and-tested platforms and see how they compare to South Africa’s PayShap.
Pix (Brazil)
Launched in 2020, Pix has rapidly become Brazil's primary payment method, processing over 3 billion transactions monthly and serving more than 140 million users. Pix now makes up to 70% of all payments in Brazil, overtaking card payments entirely.
Key features
- Instant payments: transactions are settled in seconds.
- 24/7 availability: operated around the clock, seven days a week, including holidays.
- User-friendly interface: users can easily initiate payments via Pix keys or QR codes.
- Low costs: it’s a cost-effective option for individuals and businesses.
- Interoperability: it connects to various banks, fintechs, and other financial institutions.
- Security: offers advanced protection with encryption and real-time authentication.
UPI (India)
Introduced in 2016, UPI has revolutionised India's payment landscape, accounting for nearly 80% of digital payments and processing over 12 billion transactions in January 2024 alone.
Key features
- Instant and real-time transfers: enables instant payments, 24/7 on weekends and holidays.
- Single mobile app: users can manage multiple bank accounts from a single, UPI-enabled app.
- Virtual Payment Address (VPA): uses a VPA for payments, eliminating the need for bank account details or IFSC codes.
- Secure transactions: transactions are secured by UPI PIN and a strong authentication mechanism.
- QR code payments: users can make quick payments by scanning merchant QR codes.
- Recurring: enables users to set up recurring payments, like utility bills.
- Flexibility: supports a wide range of transactions, including person-to-person transfers, merchant payments, bill payments, and more.
How does PayShap compare to Pix & UPI?
As you can see, PayShap compares well to Pix and UPI, offering instant, secure and 24/7 hassle-free payments. All three payment systems facilitate quick transactions using simple identifiers (ShapIDs for PayShap, keys for Pix, and VPAs for UPI). They all aim to increase financial inclusion and digital payments.
The biggest drawback is that PayShap has seen a slower adoption and transaction volume than the other two. This is due to a lack of promotion to consumers by financial institutions in the payment system. Despite this, PayShap is a promising step towards digital payments in South Africa, and can perhaps one day match the scale and impact of Pix and UPI in their respective countries.
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How can PayShap streamline payments for South Africans?
So, why choose PayShap for real-time payments? It leads to faster cash flow, improves customer satisfaction, and offers secure transactions, among other benefits.
Key features and benefits of PayShap
Here’s a closer look at all the key features and benefits of PayShap for South Africans and business owners.
24/7 availability
PayShap operates 24/7, meaning transactions can be made anytime, including weekends and public holidays. You don’t have to wait for bank branch hours or business days to send or receive payments, ensuring your staff gets paid over the holiday period.
Since the payments are processed immediately, dealing with urgent or time-sensitive transactions becomes easier.
Offer a new way to pay and receive
PayShap can help reduce reliance on cash and promote financial inclusion by providing accessible digital payment options. It provides an alternative to cash, credit cards, or EFT, eliminating the need to share bank account details.
The platform’s mobile-first approach democratises access to financial services, making it easier for small merchants and informal traders to send and receive payments. These merchants can now be integrated into the formal digital economy without the need for bank branches or ATMs.
Manage cash flow
PayShap can significantly improve cash flow management by enabling immediate settlements and reducing delays. This is precisely what many businesses need to operate smoothly and generate faster turnaround times.
Besides boosting overall efficiency and profitability, PayShap’s instant payments eliminate delays in settling payments and allow for more accurate financial planning and resource allocation.
Reduced complexity
Whether you want to do salary payments, bill settlements, or business transactions, PayShap simplifies the process significantly. Transfers can be done using a cellphone number, and payment requests can be made directly from your banking app.
Reduced fraud
Sharing sensitive banking information significantly increases the risk of becoming a victim of fraud. PayShap users are more protected against fraud since they do not need to share these details to receive or make real-time payments.
Interbank Payments
PayShap facilitates instant payments between participating banks. As of now, these include:
- Absa South Africa
- African Bank
- Capitec
- Discovery Bank
- FNB
- Investec
- Nedbank
- Standard Bank
- TymeBank
- HBZ Bank Limited
- Sasfin
More banks are expected to join, leading to even better financial inclusion.
Offers instant gratification and rewards
Don’t want to spend your morning in line at ATMs or wait for funds to clear on a Friday afternoon? PayShap’s instant payments eliminate these hassles and ensure transactions occur when you want them to.
You can also instantly reward or incentivise staff to motivate and encourage them, boosting employee satisfaction and overall performance.
PayShap operates on the Rapid Payments Programme (RPP), ensuring that transactions are processed and cleared in real-time. The funds can reach the recipient’s account in a matter of seconds.
What do you need to get started with PayShap?
To start receiving real-time payments with PayShap, you need to have a bank account with participating banks like Absa, Capitec, Discovery Bank, FNB, Nedbank, or Standard Bank. Then, you’ll also need a cellphone number and a mobile banking app from your bank to access PayShap.
Here’s a quick overview:
- First, make sure your bank offers PayShap.
- Download and install the mobile banking app for your bank.
- Open your banking app and navigate to the PayShap feature to register your ShapID.
- Use your cellphone number as your ShapID.
- Alternatively, you can register a unique business Shap Name for businesses.
- Link your ShapID (cellphone number) to the bank account you want to use for PayShap transactions.
- Manage your ShapIDs within the app, adding or removing them as needed.
How can South African individuals and businesses use PayShap for RTP payments?
Here’s how businesses can use PayShap to get the most out of its affordable, instant payments.
Recurring payments
PayShap facilitates recurring payments. Participating banks and other platforms have begun using PayShap for recurring payments, especially for online merchants and BNPL providers.
It can be utilised for subscription-based business models, where regular payments are made to the company. Additionally, PayShap Request allows payment reminders for BNPL like Payflex and Happy Pay to be sent, ensuring smoother transactions.
Request to pay
Using PayShap Request, businesses can send payment requests to customers, who then approve the payment via their mobile banking app. This results in more control and flexibility in transactions.
Online payments
PayShap can be enabled for online purchases, providing a convenient payment option for your customers.
QR code payments
Businesses can also implement PayShap QR code payments to facilitate contactless transactions.
good opportunity to link to the post "Payshap 5, A change-up for eCommerce Payments: Using PayShap’s Request-to-Pay for Seamless Online Transactions"
Does PayShap sound like a payment method that would suit your business?
Speak to one of our Payments Advisors to learn more.
FAQs about PayShap payments in South Africa
Still have a few lingering questions? These popular FAQs can help with that.
Wrapping up real-time payments with PayShap
South African businesses and individuals can now pay recipients using PayShap in seconds. It provides an alternative payment solution to traditional banking services that are often not as instant or affordable.
PayShap is perfect for those smaller day-to-day transactions, removing the hassle from payments. By embracing PayShap, you can make secure, immediate payments no matter the date and time or the receiver’s banking history.
Ready to hop on board? After seeing all the benefits and how it works, you must be excited to introduce PayShap into your operations.
Luckily, the process of starting to accept PayShap is easy. You can connect directly to the PayShap payment gateway on their website and inquire about the integration process.
Ready to make the move to online payments?
Speak to us about PayShap and our other convenient online payment methods today.
Author:
Liana Clarke
Marketing Manager
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With a wealth of experience and a strategic vision that transcends boundaries, Liana Clarke is the architect of our marketing success story. Their leadership style is a perfect blend of inspiration and strategic acumen, guiding our team through the ever-changing landscape of consumer preferences and market trends.
