The South African Reserve Bank (SARB) has officially acquired a 50% stake in PayInc, as it looks to modernise South Africa\u2019s payment system. <\/p>\n\n\n\n
PayInc recently rebranded from BankservAfrica and is the largest clearinghouse in Africa. The company previously worked with the SARB to launch PayShap.\u00a0<\/p>\n\n\n\n
Capitec and Investec have also subscribed as direct shareholders of PayInc concurrently. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
At the end of both additional transactions, Capitec will be an equal shareholder to the existing shareholder banks\u2014Absa, FirstRand, Nedbank and Standard Bank\u2014while the remaining banks will hold minority shares.<\/p>\n\n\n\n
PayInc said that the SARB\u2019s equity subscription establishes it as a national Payments Utility, jointly owned by the central bank and South Africa\u2019s commercial banks. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
\u201cThis moment reflects the culmination of a shared vision between the SARB, the banking industry, and PayInc to transform South Africa\u2019s payments infrastructure,\u201d said Stephen Linnell, CEO of PayInc.<\/p>\n\n\n\n
\u201cWith 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.\u201d<\/p>\n\n\n\n
PayInc has long been at the heart of South Africa\u2019s payment system since it was founded as the Automated Clearing Bureau in 1972 (it rebranded to BankservAfrica in 2010) <\/p>\n\n\n\n
The company has also played a vital role in enabling electronic, card, cash, and cheque payments, with the current focus firmly on digital payments\/ <\/p>\n\n\n\n
\u201cThe conclusion of this transaction sets the stage for the next era of payments in South Africa,\u201d added Linnell. <\/p>\n\n\n\n
\u201cAs 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.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The South African Reserve Bank has acquired a large chunk of PayInc, with other private banks also owning shares in the clearinghouse. <\/p>\n","protected":false},"author":95,"featured_media":789149,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[],"class_list":["post-842706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/842706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=842706"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/842706\/revisions"}],"predecessor-version":[{"id":842732,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/842706\/revisions\/842732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/789149"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=842706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=842706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=842706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}