The South African Reserve Bank (SARB) has taken a significant step to shape the future of payments in the country by acquiring a 50% stake in PayInc, the primary company handling electronic transactions in South Africa. This investment aims to improve and secure the country’s payment system.
PayInc, previously known as BankservAfrica, has been in operation for over fifty years, serving as the primary connection between banks for processing payments. With this new agreement, the central bank now shares ownership of the company with several commercial banks, a development that could transform the management of digital payments in the country.
In addition to the South African Reserve Bank’s investment, Capitec and Investec have also become direct shareholders. Meanwhile, Access Bank, African Bank, Citibank SA, and other institutions will hold smaller shares through a related restructuring. This initiative aims to unite both public and private players to enhance the financial foundation of South Africa’s economy.
Significance of the Move for PayInc and the South African Reserve Bank
This agreement establishes PayInc as a national payments utility, co-owned by the South African Reserve Bank, to foster trust and efficiency within South Africa’s financial system. It aims to develop a faster, safer, and more inclusive payment network for all banks and users, supporting the country’s transition to a digital economy.
PayInc, a long-standing facilitator of South Africa’s financial transactions, including card payments, electronic transfers, and ATMs, is now prioritising simpler, faster, and more connected digital payment solutions to broaden accessibility in response to the rapid growth of digital payments.
PayInc CEO Stephen Linnell stated the partnership reflects a shared vision between the central bank and the financial industry, adding that SARB’s participation will facilitate affordable, modern payment services, fostering economic growth and digital inclusion.
This partnership marks a new phase in South Africa’s payment evolution. With the SARB as a major stakeholder, PayInc is poised to drive the creation of a unified digital payment system for banks, businesses, and individuals.
In simple terms, South Africa is building a payment future that’s more open, more digital, and designed for everyone.