Reserve Bank officially buys huge chunk of 53-year-old company in South Africa
The South African Reserve Bank (SARB) has officially acquired a 50% stake in PayInc, as it looks to modernise South Africa’s payment system.
PayInc recently rebranded from BankservAfrica and is the largest clearinghouse in Africa. The company previously worked with the SARB to launch PayShap.
Capitec and Investec have also subscribed as direct shareholders of PayInc concurrently.
In a related transaction, Access Bank, African Bank, Capitec, Citibank SA and Investec will also subscribe for direct holdings in PayInc, through the unbundling of the Dandyshelf shareholding.
At the end of both additional transactions, Capitec will be an equal shareholder to the existing shareholder banks—Absa, FirstRand, Nedbank and Standard Bank—while the remaining banks will hold minority shares.
PayInc said that the SARB’s equity subscription establishes it as a national Payments Utility, jointly owned by the central bank and South Africa’s commercial banks.
It added that the unique public-private partnership provides the foundation for building a digital payments ecosystem that is more secure, efficient and inclusive, which should increase economic participation.
“This moment reflects the culmination of a shared vision between the SARB, the banking industry, and PayInc to transform South Africa’s payments infrastructure,” said Stephen Linnell, CEO of PayInc.
“With the SARB as a direct shareholder, PayInc is better positioned than ever to deliver modern, affordable, and inclusive payment services that will unlock growth across our economy.”
PayInc has long been at the heart of South Africa’s payment system since it was founded as the Automated Clearing Bureau in 1972 (it rebranded to BankservAfrica in 2010)
The company has also played a vital role in enabling electronic, card, cash, and cheque payments, with the current focus firmly on digital payments/
“The conclusion of this transaction sets the stage for the next era of payments in South Africa,” added Linnell.
“As PayInc assumes a broader role as the national payments utility, we are proud to be working with all our stakeholders in scaling digital payments and enabling a payment ecosystem that is secure, efficient, and inclusive.”
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