The South African Reserve Bank (SARB) is set to take full control of BankservAfrica, the key payment processor behind PayShap, as part of its broader goal to transition the country into a cashless economy.
The Competition Commission has recommended that the Competition Tribunal approve the SARB’s acquisition without conditions, noting that the deal is unlikely to impact market competition or raise significant public interest concerns.
From Strategic Stake to Full Ownership
The SARB initially acquired a 50% stake in BankservAfrica in late 2024, and is now moving to acquire sole ownership of the payment clearing house, which also controls Automated Clearing Bureau Investments Johannesburg Pty Ltd.
BankservAfrica plays a critical role in South Africa’s National Payment System (NPS), offering interbank switching, clearing and settlement services. Its most prominent product is PayShap, an instant-payment platform launched in 2023.
Since its debut, PayShap has facilitated over R285 billion in transactions, supported by 11 major banks.
It is seen as a game-changer in making digital payments fast, accessible and inclusive, particularly in cash-dominated areas.
SARB’s Vision: Less Cash, More Digital
The central bank has long argued that South Africa is too reliant on physical cash, citing security risks and inefficiencies.
A 2024 SARB study revealed that nearly half of South African adults withdraw all funds from their accounts immediately after deposit – driven by lack of trust, high transaction fees, and limited card acceptance in the informal economy.
Governor Lesetja Kganyago has been vocal about the need to modernise the NPS and educate the public on the safety and benefits of digital payments.
Full ownership of BankservAfrica is expected to give SARB greater control and agility in implementing this transformation.
Strategic and Economic Significance
The acquisition aligns with SARB’s constitutional mandate to protect the rand’s value and ensure financial stability.
By owning the infrastructure behind instant payments, SARB can better manage and evolve the ecosystem toward safer, more efficient financial services.
“This move allows SARB to pursue its digital payments strategy with full force,” the commission said in its statement.
No Competition or Public Interest Concerns
According to the Competition Commission, the transaction does not substantially lessen competition nor raise public interest concerns, paving the way for swift approval.
What’s Next?
With full control of PayShap’s infrastructure, the SARB is expected to accelerate digital payment adoption, particularly among informal traders, small businesses and underbanked communities.
If successful, the plan could see reduced reliance on cash, better financial inclusion, and a more secure, efficient payment landscape for all South Africans.
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