South Africa is introducing a new bank payment system this year

The Reserve Bank of South Africa is working on a new Rapid Payments Program (RPP) that is expected to significantly disrupt payments in South Africa.

The program, which is mentioned in the central bank’s 2022 annual report, is part of the SARB’s “vision 2025” plan as an industry-led payments modernization initiative.

“This RPP, when fully implemented, will offer a cost-effective instant payment service across all banks, a proxy service to integrate users’ bank details, a payment request service, as well as support for multiple known retail payment use cases,” Reserve said. said the bank.

“The payments industry under the leadership of the Payments Association of South Africa (PASA) and BankServ Africa has developed the legal construction, namely the formation of the Payments Clearinghouse and the establishment of the program RPP.”

The SARB noted that BankServAfrica is working with several banking participants to build the technology solution that forms the backbone of the RPP solution. It is currently in the testing phase with its implementation scheduled for the second half of 2022.

Talk to Tech CentralBankservAfrica chief executive Jan Pilbauer said the new system means customers will soon no longer need a bank account number or branch code to transfer money.

Instead, they will be able to use a cell phone number – or other personally identifiable information – to make a payment to someone else. He added that the system should allow users to transfer money through instant messaging apps, including meta-services like WhatsApp.

“When we go live later this year, if I want to send you money, you just need to know my cell phone number or another alias,” he said.

“In 10 seconds, the money will be in your store of value and you can use it right away, he explained. Pilbauer expects businesses, including fintech players, to use the new platform to create innovative new use cases.

Read: Cheapest and most expensive credit accounts in South Africa

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