One South African bank beats Capitec, Absa, FNB, Standard Bank, and Nedbank on PayShap fees

GoTyme Bank is the only large South African bank which offers PayShap money transfers for free for all values.

The South African Reserve Bank (SARB) launched PayShap in March 2023 to accelerate the country’s shift to a cashless society.

The rapid payment program (RPP) is an instant payment service allowing customers to transact using their phone numbers.

It uses a ShapID, usually the person’s cellphone number, which is linked to their bank account. When funds are transferred, they clear within seconds.

Fundi Tshazibana, the deputy governor of the SARB, said that PayShap is an opportunity to reduce transaction costs and build trust in digital payment methods.

Simply put, its mission is to reduce South Africa’s reliance on cash and to make instant digital interbank transfers safer, cheaper, and more accessible.

However, when the service was launched, transaction fees were so high that many people continued to use cash.

The fees have come down over the last three years, but, according to GoTyme Bank CEO Cheslyn Jacobs, they should be free.

Jacobs said that instant digital payments should be a standard feature of modern banking rather than a paid-for service.

“South Africans have grown accustomed to paying transaction fees simply to move money,” he said in a statement.

This, he said, is at odds with what is seen in the digital economy, where instant, free services are the norm.

“The technology now exists to move money instantly, safely and at any time of the day,” said Jacobs.

“The next step is ensuring customers don’t have to think twice about using it because of transaction fees.”

PayShap transfers should be free

PayShap has established a common payment rail across the banking industry. However, pricing differs significantly.

Large banks, including Capitec, Absa, FNB, Standard Bank, and Nedbank, charge fairly high fees for PayShap transfers.

“A R2, R5 or R10 fee may appear small, but those costs can add up quickly for consumers who regularly send money,” Jacobs said.

For many South Africans, transaction fees remain a barrier to adopting digital payments, even as the country works to reduce its reliance on cash.

GoTyme Bank believes the industry should increasingly view payment infrastructure in the same way consumers view internet connectivity.

It should be a service that runs in the background, without customers having to think about it or worry about fees.

“The biggest opportunity isn’t just making payments faster. It’s making digital payments so accessible that they become the default way to exchange value,” he said.

GoTyme Bank put its money where its mouth is and offers all PayShap transfers free to its clients. It is the only bank which did that.

The table below shows the PayShap fees for all the big banks in South Africa.