I recently recorded an episode of the Talking Success podcast with Ghita Erling, the CEO of the Payments Association of South Africa, where she shared some fascinating insights about the fintech payments industry in South Africa.
The FinTech Payments Industry In South Africa is Booming
First off, let me just say that the industry is absolutely booming! As South Africa continues to embrace digital transformation, fintech payments are playing a crucial role in driving this transformation. It’s great to see so many consumers and businesses hopping on the digital payments bandwagon.
But what’s really exciting is the constant emergence of new players and innovations in the industry. Ghita mentioned that there are so many exciting developments happening right now, such as international fintech companies entering the market, retailers getting banking licenses, and banks developing alternative payment methods.
Large Funding Rounds
And the best part? Fintech companies are still raising large sums of funding in South Africa, despite what’s been going on in the rest of the economy. Just a few weeks ago, Lulalend raised a whopping 35 million in a Series B funding round. How cool is that?
Ghita also shed some light on the role of the Payments Association of South Africa, which manages the activities of its members in the national payment system. They ensure that money can be moved from one bank to another safely and securely. They’re also involved in coordinating projects for system modernization, which sounds pretty exciting to me!
Now, you might think that the association’s members are mostly banks, but did you know that the National Payment System Act allows for non-bank companies to be designated into the payment system too? Yep, in the past year, there have been several non-bank companies designated into the system.
Launch of the PIB
Recently, the association was invited to the launch of the Payments Industry Body (PIB), which is set to replace PASA. The PIB is not just a name change, but rather the result of a significant amount of work and collaboration between stakeholders in the industry.
The PIB is a placeholder for the entity that will replace the Payments Association of South Africa, and it aims to create a more collaborative environment for stakeholders in the industry. The new entity will have a broader mandate, including the development of new payment solutions, system modernization, and advocating for the interests of the payments industry as a whole.
The launch of the PIB is a clear indication of the dynamic nature of the FinTech payments industry in South Africa. It also shows how stakeholders are constantly seeking new ways to collaborate and innovate. As the industry continues to evolve, it’s exciting to see what new payment solutions and technologies will emerge in the years to come.
Evolution of Payment Solutions towards a Cashless Economy
It’s clear that the FinTech & payments landscape in South Africa is rapidly evolving and there’s no shortage of innovation and growth in the industry. As the country moves towards a cashless economy, we’re excited to see what new payment solutions will emerge.
So there you have it, folks! A relaxed and friendly take on the FinTech payments industry in South Africa. Watch the full episode below:
