PayShap to launch through MTN and Investec on MoMo

PayShap, an instant payments platform, is set to integrate with MTN’s Mobile Money (MoMo) platform through a strategic partnership with Investec and Electrum. This collaboration positions MTN MoMo as the pioneer non-banking entity to introduce PayShap, lauded by MTN South Africa for bridging a significant gap in serving the unbanked population.

Read: Microsoft launches its smallest AI model, Phi-3

Investec will serve as the banking partner, while Electrum will provide technical oversight for the seamless integration of PayShap into the MoMo platform.

PayShap, a real-time, interbank digital payment service, emerged from the Rapid Payments Programme, aimed at providing a viable alternative to cash transactions.

Investec Bank Limited CEO Cumesh Moodliar underscored the initiative’s aim to bridge the divide between traditional banking and mobile solutions, fostering a financial ecosystem catering to all segments of society.

As the technical partner, Electrum brings expertise to ensure the smooth implementation of PayShap.

Drawing inspiration from successful global models like Reliance Jio and UPI AutoPay in India, where 80% of transactions use a similar rapid payment solution, MTN crafted this initiative meticulously.

Bradwin Roper, CEO of fintech services at MTN South Africa, highlighted Jio’s groundbreaking integration with the UPI AutoPay facility in 2022, underscoring its status as the first telecommunications player to embrace a unique e-mandate feature.

Roper expressed enthusiasm for the partnership’s potential to reshape South Africa’s digital payments landscape, emphasizing its role in enhancing financial inclusivity and facilitating safer and more efficient mobile payments.

MTN noted that the availability of the PayShap solution on the MoMo platform is contingent upon obtaining all necessary approvals, with African Bank remaining the sponsor bank for the MoMo wallet.

Regarding transaction fees, MTN clarified that the functionality will be restricted to individuals funding the MoMo wallet, with fees varying based on the originating bank for PayShap transactions.