MTN South Africa has joined forces with Investec and Electrum to roll out PayShap, a speedy payment platform, on its MTN Mobile Money (MoMo) service. This move aims to help people who don’t have regular bank accounts.
More than 19 million South Africans can’t access formal banking, and over a million small businesses rely only on cash. This means lots of people need better ways to manage their money.
MTN SA MoMo, which already has over eight million users, is now the first non-banking player to offer PayShap. Investec is backing it up as the banking partner, while Electrum is handling the tech side.
Bradwin Roper, MTN South Africa’s Fintech CEO, says, “This strategic collaboration will empower our users, particularly the unbanked community, with accessibility and convenience.”
PayShap is a quick way to move money between different banks in real-time. Launched in March 2023, PayShap is part of a plan to make cashless payments easier. It’s backed by big banks like Nedbank, Absa, Standard Bank, FNB, Discovery Bank, and approved by the South African Reserve Bank.
South Africans can send and receive money instantly using just their cell phone numbers.
MTN is currently waiting for approval to fully integrate PayShap into the MoMo platform. They haven’t said yet how much it’ll cost to use PayShap on MoMo, but some banks charge fees for PayShap transactions.
Expanding Horizons: MTN MoMo is also spreading to 10 new countries, with a launch fee of 4%.
Cumesh Moodliar, CEO of Investec Bank in a statement implied that they want to build a financial system that works for everyone by combining traditional banking with mobile solutions.
The Future of MoMo: In February 2024, MTN teamed up with MasterCard to introduce the MoMo virtual card for Africa. This virtual card makes it easy for merchants using MoMo to accept card payments.
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