<\/p>\n
<\/iframe><\/p>\n<p>You can also listen to this podcast on iono.fm here.<\/p>\n<p><strong>SIMON BROWN: <\/strong>I\u2019m chatting with Shergeran Naidoo, head of stakeholder engagement at PayInc. PayInc of course used to be BankservAfrica. Shergeran, appreciate the time. The PayInc Economic Index is tracking sort of monthly value of electronic transactions cleared through PayInc.<\/p>\n<p>We\u2019ve just had the latest survey. The \u00a0index down 2.1% in May, its lowest since November, although it is up year on year. I\u2019m not sure which number to be paying attention to, although I do suspect the one is probably that \u2013 \u00a0it\u2019s at the lowest point since November. It\u2019s tough being a consumer, and this index is telling us that.<\/p>\n<p><strong>SHERGERAN NAIDOO: <\/strong>Thank you Simon, thank you for having us on your show and allowing us an opportunity to speak about the latest reading of the PayInc Economics Index.<\/p>\n<p>As you\u2019ve correctly surmised, those are two very salient highlights or two very salient points \u2013 the reduction in the PayInc\u00a0 Economic Index, the 2.1% on a month-on-month basis, which is, as you said, the lowest since November 2025. But, that being said, it\u2019s 4% higher than a year ago.<\/p>\n<p>Read:<br \/>What BankservAfrica\u2019s rebrand means for SA\u2019s payments landscape<br \/>PayInc steps up push to move South Africa to digital payments<\/p>\n<p>So what that tells us is that more and more people are moving to electronic payments, and using electronic payments as part of their daily payments arsenal. But the circumstances in which we\u2019re living are obviously having a trickle-down effect on the payment activity that we\u2019ve actually seen in these last few months.<\/p>\n<p><strong>SIMON BROWN: <\/strong>You made the point there as well \u2013 around real time \u2013 and I want to jump ahead to a question. EFT and DebiCheck volumes contracted but PayShap, which I love, and real-time clearing grew.<\/p>\n<blockquote>\n<p>Is this consumers under pressure or is this perhaps a more structural change to those real-time payments which are thing of beauty.<\/p>\n<\/blockquote>\n<p><strong>SHERGERAN NAIDOO: <\/strong>Ah, thank you. And thank you for appreciating that. That\u2019s really what we\u2019re trying to do \u2013 as the national payments utility \u2013 to be able to drive more and more people to use digital payments, and more and more real-time payments as part of driving digital financial inclusion.<\/p>\n<p>I think you\u2019ve captured there \u2013 \u00a0that more people are using instant payments and PayShap is becoming more ubiquitous, and that\u2019s really part of the objective and the vision for the Sarb [South African Reserve Bank] when we introduced PayShap.<\/p>\n<p>Read\/Listen:<br \/>Ozow launches PayShap Request to unlock instant merchant payments<br \/>Why the Sarb is pushing for a shift to digital banking<\/p>\n<p>But as you\u2019ve captured, because of the pressures that we\u2019re experiencing, more and more a result of the inflationary pressures that we\u2019re experiencing, I think more people are starting to become a more mindful about their spending habits and about those things that they can control.<\/p>\n<p>And to your point, factors such as your use of your EFTs, whether it\u2019s your insurance policies or your instalments, your payments and things that people can control and have a bit of latitude to thinking about: \u2018Well, I don\u2019t know if I want to continue with this gym contract right now. Perhaps I\u2019m going to actually cancel that.\u2019<\/p>\n<p>So you would probably find that trickling through in that some of that data. But you\u2019re looking at a decline. The numbers that we\u2019ve processed, we\u2019re looking at approximately 186.3\u00a0million in April, and we\u2019ve added a marginal decline to 185.5\u00a0million in May \u2013 but it\u2019s still 5.2% higher than a year ago.<\/p>\n<blockquote>\n<p>So it demonstrates that more and more people are using digital payments as part of their daily makeup.<\/p>\n<\/blockquote>\n<p><strong>SIMON BROWN: <\/strong>And that comes to the other point. You\u2019ve got a new component \u2013 cash supplied to banks \u2013 that declined in May. Again, this is probably more about that structural shift to digital and digital payments, which is a South African story, but truthfully a global story as well.<\/p>\n<p>Read: Current SA consumer spending habits<\/p>\n<p><strong>SHERGERAN NAIDOO: <\/strong>Absolutely correct. It is a global story. I think in more and more markets you\u2019ll find that there\u2019s a realisation that cash is never going to be done away with. So you\u2019ll find that language moving from becoming \u2018cashless\u2019 to becoming \u2018cash-lite\u2019 or \u2018less cash\u2019.<\/p>\n<p>So the cash data point that you\u2019ve mentioned is a new introduction or relatively new introduction into the index.<\/p>\n<p>But what we do is we manage or monitor, rather, the cash supply. So PayInc has a system called the Integrated Cash Management System, which manages cash supply between the banks. So it really tracks the order between banks, because banks also use the cash at their disposal as a means of being able to manage their own cash usage.<\/p>\n<p>Read:<br \/>Where does all the money go?<br \/>Adapt or become irrelevant: SA hits a payments crossroads<br \/>ATMs closing across SA: Will we become cashless?<\/p>\n<p>So PayInc sits in the centre and actually manages that system, and hence we\u2019ve observed that there has been a slight but noticeable reduction in the cash that\u2019s moving between banks, which ties into to some of the observations that you made.<\/p>\n<p><strong>SIMON BROWN: <\/strong>Yes, absolutely. I\u2019m old school. I still like some cash, but I love instant payment, \u00a0and the PayShap. It\u2019s simple. It\u2019s easy. It\u2019s wonderful.<\/p>\n<p>We\u2019ll leave it there. Shergeran Naidoo is head of stakeholder engagement at PayInc. Shergeran, appreciate the time.<\/p>\n<\/p><\/div>\n<p>#PayInc #replaces #BankservAfrica #tracking #electronic #payment #transactions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You can also listen to this podcast on iono.fm here. SIMON BROWN: I\u2019m chatting with Shergeran Naidoo, head of stakeholder engagement at PayInc. PayInc of course used to be BankservAfrica.… <\/p>\n","protected":false},"author":1,"featured_media":6768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[9162,9163,9161,1218,5335,4950,4985],"class_list":["post-6767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-bankservafrica","tag-electronic","tag-payinc","tag-payment","tag-replaces","tag-tracking","tag-transactions"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6767"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/6767\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/6768"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}