New SA payments association promises fair access, reduced costsNew SA payments association promises fair access, reduced costs

Eight of the largest non-bank digital payment providers in South Africa have come together to launch the Association of South African Payment Providers (Asapp).

Asapp's primary objectives are to promote fair access to payment infrastructure, reduce the wholesale cost of digital payments, and enhance transparency and customer mobility within South Africa's payment ecosystem for both individuals and businesses. 

The founding members are iKhokha, Peach Payments, Shop2Shop, Yoco, Altron, Hello Group, Lesaka Technologies and Network International (which owns Payfast by Network).

Together, they represent a significant portion of the Southern African country's non-bank payment ecosystem.

Advancing digitization of payments

The association promised to advance the digitization of payments in South Africa and make the financial sector more inclusive, highlighting that the country has a large underbanked population and millions of businesses which still rely on cash-only transactions.

"We see cash as being the most dominant form of payment for many consumers, micro merchants and small businesses in townships, villages and city centers across the country. This is not sustainable. We need to digitize our economy," said Asapp President Lincoln Mali, who is also CEO of Lesaka Technologies.

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"We need to open up our payment system, make it more modern and inclusive, so that more merchants, small businesses and consumers can participate in a modern payment environment," Mali added.

Lincoln Mali, CEO of Lesaka Technologies and president of Asapp. (Source: Asapp)

Asapp aims to create more opportunities for financial inclusion by advocating for increased support for and participation of non-bank payment providers in the payment ecosystem.

The group said it would work in collaboration with regulators and industry stakeholders to address challenges and use innovation to unlock a more inclusive digital payments future for South Africa.