Early 2017, PASA and BankservAfrica commissioned research to inform an industry project to modernise South Africa’s low value payments infrastructure.

Now available, the research offers insights into the current state of low-value and high-volume payments infrastructures world-wide and provides a clear view of the importance of payments system modernisation, providing a platform from which all stakeholders can start a conversation on the future of the shared electronic payments infrastructure and ecosystem in South Africa and other developing economies.

Partnering with global research house Lipis Advisors and local partner IQ Business Group, the research draws its conclusions from interviews and data gathered from key stakeholders in the payments industry from 10 countries, including South Africa. Through the findings, both BankservAfrica and PASA, were able to use the research as a foundational analysis from which to draw key conclusions on the need for payment system modernisation as well as highlight some key modernisation priorities for discussion and consideration in the industry locally.

As per the research some key themes have emerged in support of the need for modernisation. Firstly, South Africa is not alone in its desire to modernise payments, this is a global challenge which is being addressed by global players at varying levels. Secondly, modernisation can only be achieved through industry collaboration, which includes both private and public partnerships, as the success of implementing industry change should be as open, inclusive, and transparent as it is practical.

Furthermore, modernisation is a key driver in the future digital economy. While South Africa continues to be able to lay claim to having one of the best national payments systems infrastructures in the world, it is an infrastructure that is now 50 years old and as a result may no longer be able to scale to embrace the requirements of payments 20 years into the future. Payments modernisation also presents the industry as a whole with the opportunity to address challenges of the current state, such as improvement of security and fraud reduction, economic growth, efficiency and cost reduction.

The research is neither prescriptive, nor does it dictate what a modernised payment system should be made up of – instead it highlights the potential impact and benefits a modernised infrastructure could have on the economy.

Get information on the research by clicking on the below links.
Modernisation Research