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Three years after the launch of South Africa’s PayShap real-time payment platform, the conversation has shifted from technology to affordability. While instant bank transfers are now widely available, many consumers continue to pay fees to move their own money, prompting fresh debate about whether real-time payments should remain a premium banking service.
Digital-first banks argue that instant payments should be treated as a standard feature rather than a value-added service. According to GoTyme Bank South Africa CEO, Cheslyn Jacobs, customers should not have to think twice about transferring their own money because of transaction costs.
Jacobs noted that while each financial institution determines its own pricing strategy, GoTyme believes instant payments are a core banking service that should be accessible without additional charges. He added that as payment infrastructure matures and technology advances, banks should focus on making digital transactions more convenient and affordable.
The discussion reflects broader changes within South Africa’s banking industry. Although all major banks now support PayShap and other real-time payment services, pricing varies significantly across institutions, creating different experiences for customers.
Publicly available pricing information shows that GoTyme offers PayShap transfers free of charge across supported transaction limits. Other banks typically charge between R1 and R10 per transfer, while some institutions apply percentage-based fees that can reach up to R35 for larger transactions. Certain banks also differentiate pricing depending on whether funds are sent to a cellphone number or directly to a bank account.
For individuals who frequently send money to family members, pay domestic workers, split expenses, or settle payments with small businesses, these charges can accumulate over time.
Traditional banks maintain that instant payment services involve significant operational costs. Maintaining payment infrastructure, fraud prevention systems, cybersecurity controls, compliance processes, and settlement mechanisms requires continuous investment, with transaction fees helping to offset these expenses while contributing to non-interest revenue.
GoTyme, however, believes those operational costs should increasingly be absorbed as part of delivering modern banking services. The bank says offering free instant transfers aligns with its broader strategy of making banking simpler, more accessible, and more rewarding for customers.
The debate mirrors developments in other markets where instant payment systems have achieved widespread adoption through low-cost or free transactions. Brazil’s Pix and India’s Unified Payments Interface (UPI) have demonstrated that affordable real-time payments can rapidly become the preferred method for everyday financial transactions.
Jacobs believes South Africa has already built the infrastructure necessary to achieve similar levels of adoption. He noted that international experience shows consumers embrace digital payments when they are simple, convenient, and inexpensive, adding that the next phase for South Africa is encouraging everyday usage of its existing real-time payment network.
PayShap was introduced to make digital payments faster, cheaper, and more inclusive, particularly for lower-income consumers and participants in the informal economy where cash remains dominant. Greater adoption could also reduce the costs and risks associated with cash handling for individuals and small businesses.
Despite operating on the same payment infrastructure, banks continue to differentiate themselves through pricing models, suggesting that competition is increasingly centred on the broader customer experience rather than payment speed alone.
Looking ahead, Jacobs expects the banking industry to gradually move toward a future where instant payments become a standard feature rather than a paid service. While he acknowledged that each bank will determine its own strategy, he believes the long-term direction points toward greater accessibility and lower transaction costs.
As instant payment technology becomes more commonplace, South African banks are expected to compete less on transfer capabilities and more on service quality, innovation, and customer experience. For consumers, however, the central question remains whether paying to send money will continue to be part of everyday banking.
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