Keenan Mayet from Absa on PayShap and Financial Inclusion in South Africa

Absa sees an opportunity for South Africa to move forward with a modern financial infrastructure. Keenan Mayet, Head of International Banking and Payments at Absa, explains that the South African financial system operates between two economies: one digital and the other cash-based.

Two-Tier Economy and Absa Solutions

South Africa faces the reality of coexisting digital and cash economies, which requires the creation of products that serve both. Absa is eliminating friction between these ecosystems by utilizing reliable channels like retail stores and mobile banking platforms. For financial inclusion, it is crucial to enable people to participate in the economy at a broader level.

PayShap: A Step Towards Daily Payments

PayShap has already garnered attention due to its instant payment capabilities. The next step is integration with commercial transactions. For the successful deployment of PayShap, users must be convinced that using it is more convenient than cash. Introducing the PayShap QR standard will create a systemic approach, making digital payments accessible and less costly.

Partnership with Thunes to Expand Inclusion

Absa's partnership with Thunes modernizes remittances by reducing costs and enhancing access to cross-border payments. Every received digital remittance opens clients up to the formal financial system and additional services such as savings and loans.

Mobile Payments in South Africa

South Africa has the opportunity to build a future payment system, leaving traditional card solutions behind. The mobile infrastructure allows for a rethinking of payment approaches with a focus on instantaneous transactions. The country’s demographics, where the younger generation expects immediate, embedded, and invisible transactions, support this transition.

Prospects for Digital Inclusion

The shift towards digital payments provides visibility and opportunities for personalized financial solutions. Digital transactions can help establish a financial identity for access to loans and other services. This process is aimed at creating pathways for broader economic inclusion and expanding financial opportunities.