Standard Bank has called on South African banks to cut fees for PayShap transactions to boost adoption and financial inclusion. Speaking at a recent event in Johannesburg on September 4, 2025, a top executive highlighted how high costs are holding back the rapid payments system launched in 2023.
Why Fees Matter for PayShap Growth
High fees are a major roadblock to wider use of PayShap in South Africa. The platform allows instant transfers between banks, but many users stick to traditional methods due to similar costs.
Standard Bank’s head of interbank and domestic payments pointed out that pricing strategies vary across banks. This creates confusion and limits access for everyday people who need affordable options.
Experts say countries like India and Brazil have seen huge success with free or low-cost rapid payments. South Africa could follow suit to help more people join the digital economy.
Recent data shows PayShap transactions have grown, with average payments now around R500. Yet adoption lags behind global leaders because of fees.
Standard Bank’s View on Pricing Strategy
Banks should think long-term instead of rushing to recover costs. The executive stressed that PayShap is a key tool for modernizing payments across Africa.
Current rules set clear interchange fees, but individual banks decide what to charge customers. This freedom leads to higher prices that hurt low-income users.
Standard Bank owns part of PayShap and wants the industry to review strategies. Lower fees could drive more volume and build a stronger system over time.
In 2025, some banks have adjusted limits, raising the cap to R50,000 per transaction. This change aims to make PayShap more useful for bigger payments.
The bank also noted a tenfold surge in PayShap ID transactions this year. This growth shows potential, but fees remain a barrier.
Comparing Fees Across Major Banks
Fees for PayShap vary widely among South African banks. This table breaks down current charges for a typical R1,000 transfer as of September 2025:
| Bank | Fee for PayShap (R1,000) | Notes |
|---|---|---|
| Standard Bank | R7.50 | Capped for smaller amounts |
| Absa | R7.50 | Default for interbank payments |
| FNB | R30 | Higher for larger transfers |
| Nedbank | Varies | Not always instant |
| TymeBank | Free | Up to R5,000 limit |
| Capitec | R10 | Affordable for most users |
These differences show why unified lower fees could level the playing field. TymeBank’s free model has drawn praise for promoting inclusion.
Some banks charge nothing for person-to-person transfers under certain limits. This approach mirrors successful systems in other countries.
Impact on Financial Inclusion
Lower fees would help millions of South Africans without easy access to banking. PayShap aims to reduce reliance on cash, which is risky and costly.
In rural areas, instant payments could transform small businesses. Vendors could receive money quickly without high charges eating into profits.
Recent launches like PayShap Request in December 2024 allow real-time payment requests. This feature boosts convenience but needs low costs to take off.
Financial experts predict that cutting fees could increase adoption by 50% in the next year. This ties into South Africa’s goals for a modern payment system by 2025.
Challenges remain, such as educating users on how to register. Banks are running campaigns to explain the benefits.
Global Lessons for South Africa
South Africa can learn from global successes in rapid payments. India’s UPI handles billions of free transactions monthly, driving economic growth.
Brazil’s Pix has similar results, with low or no fees for personal use. These models show how affordability leads to widespread use.
In Africa, mobile money services like M-Pesa in Kenya thrive on low costs. PayShap could follow this path to compete.
Standard Bank’s white paper on African payments highlights these trends. It calls for collaboration to overcome barriers.
Future Outlook and Challenges
The push for lower fees comes amid economic pressures in South Africa. With GDP growth forecasts cut to 0.9% for 2025, affordable banking is crucial.
Banks face competition from fintechs offering cheaper alternatives. Lowering PayShap fees could help traditional banks stay relevant.
Regulators are watching closely, but changes depend on banks’ willingness. Industry talks are ongoing to find a balance.
Users are voicing concerns on social media about hidden fees. Some banks have quietly shifted defaults to PayShap, adding unexpected costs.
To stay informed on PayShap updates, check your bank’s app. Share this article if you found it helpful, and comment below on your experiences with rapid payments in South Africa.
