South Africa’s PayShap instant‑payments network has now crossed the six‑million‑user mark and logged 905 million transactions since its debut in early 2023, according to the latest figures released by operator PayInc. While the raw numbers suggest rapid uptake, the platform’s owners admit that high fees and an uneven banking experience are still hampering broader adoption, especially among the country’s informal traders.
The data were unveiled at the inaugural PayShap Accelerate Acceptance Conference, where PayInc signalled a clear strategic shift. After three years of focusing primarily on peer‑to‑peer transfers, the scheme is turning its attention to merchant payments, e‑commerce and mobile point‑of‑sale solutions. “Reducing the cost of doing payments and ensuring seamless, consistent user experiences across banking channels are critical to unlocking the full potential of instant payments,” said Israel Skosana, PayInc’s chief product and scheme officer. His remarks underscore a new collaborative approach that will involve banks, the South African Reserve Bank (SARB) and a host of fintech players.
PayShap’s merchant‑payments push gains momentum
The surge in transaction volume is palpable. An analysis published by Finch Technologies in December 2025 recorded 461 million transactions worth roughly R403 billion processed by PayShap in its first two and a half years. The latest 905 million tally therefore represents almost a doubling of activity in just five months, a growth rate that, while impressive for a home‑grown system, still lags behind global rivals.
| Metric | PayShap (South Africa) | PhonePe (India) |
|---|---|---|
| Total users (3 years) | 6 million | ≈ 6 million |
| Average new users per week | ~ 38 000 | > 1 million |
| Transactions processed | 905 million (as of 2024) | > 2 billion (2024) |
| Value of transactions | R403 billion | ≈ US$15 billion |
PayShap’s three‑year user total mirrors PhonePe’s growth over just five weeks, highlighting the scale differential between South Africa’s nascent instant‑payment rail and India’s mature ecosystem.
The table highlights that PayShap’s user base, while solid for a regional platform, remains modest when benchmarked against the explosive growth of Asian counterparts. The key takeaway is that sheer volume alone will not convince merchants; cost‑effectiveness and accessibility must improve to win over the informal sector that still relies heavily on cash.
Cost has been the loudest critique since PayShap’s launch. Early market analyses warned that transfer fees exceeding R50 for larger payments could undermine the network’s financial‑inclusion promise. Moreover, the reliance on smartphone‑only channels left many informal traders – who often depend on USSD‑based solutions – without a viable entry point. The banks that own PayInc have historically been reluctant to champion a low‑cost rail that could cannibalise their own fee‑laden card and EFT pathways, creating a structural conflict of interest.
That tension began to ease toward the end of 2025, when PayInc rebranded from BankservAfrica and the SARB acquired a 50 % stake in the venture. Finance Minister Enoch Godongwana later confirmed in the 2026 budget that PayInc would serve as South Africa’s shared, open digital‑payments infrastructure, tasked with ensuring interoperability across providers. The central bank’s backing supplies the merchant‑focused pivot with a firmer regulatory footing and a clearer mandate to drive down fees.
PayShap is not entering a vacant market. Established players such as Yoco, SnapScan, Zapper, Ozow and the traditional card networks already dominate merchant acceptance. To carve out space, PayInc must demonstrate tangible value to the informal economy, where cash still accounts for a majority of transactions.
“Driving real acceptance and building everyday demand for PayShap is the next milestone,” said Enoch Malisa, PayInc’s head of business development. “The real measure of success is whether township retailers and underserved communities are meaningfully participating in digital payments today.” His comments echo a broader industry consensus that the future of South Africa’s payments landscape hinges on inclusive digital uptake, not just headline transaction counts.
What the merchant pivot could mean for South African businesses
| Potential benefit | Impact on merchants |
|---|---|
| Lower transaction fees | Higher margins for small retailers |
| USSD‑enabled payments | Inclusion of cash‑only traders |
| Instant settlement | Improved cash‑flow management |
| Cross‑bank interoperability | Ability to accept payments from any bank’s app |
If PayShap delivers on these promises, merchants could see a measurable reduction in operating costs and a boost in sales conversion, particularly in townships and peri‑urban areas.
Real‑world pilots are already underway. A consortium of township retailers in Soweto has begun testing a PayShap‑enabled POS that accepts both QR‑code and USSD payments, reporting a 15 % increase in transaction speed compared with traditional EFT. Early feedback suggests that when fees are kept below R5 per transaction, merchants are more willing to promote digital checkout options to customers who might otherwise default to cash.
Nevertheless, the success of the merchant push will still depend on how quickly the participating banks can align their pricing structures with the SARB’s affordability agenda. While the central bank has signalled a willingness to intervene, any regulatory pressure must balance the banks’ need to recoup operational costs with the broader goal of financial inclusion.
In sum, PayShap’s growth story is at a crossroads. The platform has proved it can handle hundreds of millions of transactions, but the next phase will test whether it can become the go‑to payment rail for South Africa’s vast informal sector. If the collaboration between PayInc, the SARB and the commercial banks can deliver lower fees, seamless user experiences and true USSD access, PayShap could finally shed its early‑stage “first‑gear” label and accelerate into mainstream merchant adoption.
The coming months will reveal whether the network’s strategic pivot translates into everyday digital payments on township shop floors, market stalls and small‑business e‑stores across the nation. For now, the numbers are promising, but the real test lies in the hands of the merchants who will decide if PayShap can truly become South Africa’s inclusive, instant‑payment backbone.