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Bridging the financial inclusion gap in South Africa requires simplicity and affordability

26Apr

By Africa BusinessNo Comments

Fintech, South Africa News

Bridging the financial inclusion gap in South Africa requires simplicity and affordability

Financial inclusion remains a major challenge in South Africa, where millions of people remain outside the formal banking system and where higher-income groups have more access to a broader range of financial services. Despite recent steps being taken in the right direction, Andrew Springate, CEO of tech and financial gateway service provider PAYM8 says innovative solutions aimed at meaningfully addressing financial inclusion must also be simple, easy to use, and most importantly, affordable and interoperable. As the country moves towards digital payment systems, the key to financial inclusion lies in modernising the market and reducing barriers to entry. The adoption of digital payment systems is one way to increase financial inclusion in South Africa, and although there have been severa...

Modernising and regulating SA’s payments industry

In the second half of 2022, the South African Reserve Bank (SARB) announced it has its sights set on stricter regulations for the South African payments ecosystem “to ensure financial stability in a world of increasingly innovative and disruptive technology”. Though some new fintech players winced at the thought, it is a necessary move if South Africa wants to keep up with international trends, notes Andrew Springate, CEO of tech and financial gateway service provider PAYM8. Fintechs and Virtual banks are increasingly grabbing a larger share of market space, but often taking on more risk than traditional banks due to their ability to scale up rapidly, says the International Monetary Fund. “Though stricter regulation might it more difficult for new players to enter the market, payments mus...

A Payment Solution for Africa That Bypasses Complexity

Understandably, merchants are finding it increasingly difficult to keep abreast of all the latest payment products and solutions that are available. “It is complex and costly for merchants to manage their own integrations into multiple solution providers. Merchants should be focusing on their core businesses and leave payment complexities to specialist companies,” says Andrew Springate, CEO of tech and financial gateway service provider PAYM8. Founded in 2001, PAYM8 quickly expanded its footprint across the African continent and now processes over R3 billion in annual transaction value for its clients, and is one of the few payment solution providers in Africa capable of providing a single offering to merchants spanning both payer and payee-initiated payments. Merchants want all payments...