Why South African banks still charge for instant payments

Three years after the launch of PayShap, South Africa’s real-time payment system, the technology behind instant bank transfers is no longer the issue. The question is why consumers are still paying to move their own money.

Digital challenger banks argue that instant payments should be treated as a core banking service rather than a premium feature. “Every bank has its own commercial model and pricing strategy, so we can’t speak for the decisions other institutions make,” Cheslyn Jacobs, CEO of GoTyme Bank South Africa, told TechCabal in an interview. “From GoTyme Bank’s perspective, we believe that instant payments are a core banking service rather than a premium feature.”

As technology evolves and payment infrastructure matures, Jacobs said customers should not have to think twice about moving their own money because of transaction fees. The debate extends beyond GoTyme’s pricing strategy. 

It reflects a shift in South Africa’s banking sector. With instant payments now widely available, banks are increasingly competing on price and customer experience. Although every major bank now supports real-time payments, customers pay very different fees depending on their bank, raising questions about whether those charges are still justified.

According to publicly available pricing, GoTyme Bank offers PayShap transfers free across all supported transaction values. Other banks charge between R1 ($0.061) and R10 ($0.61), while Discovery Bank charges up to 0.5% of the transaction value, capped at R35 ($2). 

Nedbank, one of South Africa’s big four banks, also charges different fees depending on whether money is sent to a cellphone number or directly to a bank account. For consumers who regularly send money to relatives, pay domestic workers, split bills, or pay small businesses,…