In a bid to modernise the national payments landscape, the South African government has embraced partnership with private sector leaders like Ozow, ensuring that more citizens participate safely and effectively in the digital economy.
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The landscape of South Africa's payments system is set for a revolutionary upgrade following Finance Minister Enoch Godongwana’s commitment in his recent Budget Speech.
Payments processing company Ozow said on Thursday that it wholeheartedly welcomed this initiative, which prioritises the modernisation of the national payments system under the Payments Ecosystem Modernisation (PEM) programme.
In his address, Godongwana confirmed that both the National Treasury and the South African Reserve Bank (SARB) are dedicating resources to revitalise the payments system, an effort that signals a progressive shift towards enhanced digital financial solutions.
A significant milestone in this endeavour has already been achieved with the establishment of PayInc, a new Payments Utility poised to provide shared digital payment infrastructure that facilitates interoperability among various payment providers.
Previously known as BankservAfrica, PayInc stands as Africa’s largest automated clearing house and functions as South Africa’s national payments utility.
The recent rebranding underscores its pivotal role in delivering interbank switching, clearing, and settlement services, with half of its ownership held by the South African Reserve Bank.
Rachel Cowan, interim CEO of Ozow, emphasised the importance of cross-industry collaboration in her reactions to the Minister's announcement.
Cowan stated, “The Minister’s confirmation that Payments Ecosystem Modernisation is a national priority signals a significant step forward for South Africa’s digital payments landscape. Interoperable, real-time, and accessible payment systems are fundamental to bringing consumers into the digital economy with a more equitable, efficient, secure, and affordable way to transact.”
Ozow has positioned itself at the forefront of this transformative wave by becoming the first company in South Africa to integrate the PayShap Request feature for e-commerce.
This innovation exemplifies how modern payment frameworks can pave the way for instantaneous, secure, and budget-friendly transactions, benefiting both consumers and businesses.
By enabling real-time payment requests directly between bank accounts, PayShap Request alleviates transaction friction in e-commerce settings and bolsters cash flow for merchants.
Through its ongoing efforts to promote merchant adoption of PayShap Request, Ozow is solidifying its status as a critical payments provider and aligning closely with the mandates established by PayInc in South Africa.
“Modernising payments is not just about technology; it is about economic inclusion. By leveraging real-time capabilities such as PayShap Request, we can help bring more South Africans into the formal economy, support SME growth, and strengthen trust in digital commerce,” Cowan added, reflecting on the broader implications of these advancements.
With eyes set on the future, Ozow said that it looks forward to continuing its collaboration with regulators and industry partners to propel a resilient, interoperable, and future-ready payments ecosystem in South Africa.
BUSINESS REPORT