South Africa has a large underbanked community, with many people still relying on cash only transactions.

The new Association for South African Payment Providers (ASAPP) aims to provide fair access to payment infrastructure, reduce the wholesale cost of digital payments and enhance transparency and customer mobility in South Africa's payment ecosystem for individuals and businesses.

Launched on January 29, ASAPP was founded by eight of South Africa’s largest non-bank payment players – Altron, Hello Group, iKhokha, Lesaka, Network International/Payfast by Network, Peach Payments, Shop2Shop and Yoco.

The newly founded association 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.

Speaking during the launch, ASAPP president Lincoln Mali described the South African payments landscape as being at a turning point, noting that the reliance on cash presented both challenges and opportunities.

“While cash remains essential for many, it limits efficiency, inclusivity and transparency in the broader economy. Globally, non-bank entities are driving the future of payments.

“In just over a decade, non-banks and fintech disrupters have gained substantial market share, transforming the industry in their countries. South Africa is following the same trajectory with non-banks positioned to play an increasingly important role in the payment system in South Africa.

“ASAPP is here to lead this evolution and ensure that all participants in the payment ecosystem have the tools to succeed,” he said.

Mali expressed that removing barriers, reducing costs and fostering collaboration could help create a payment system that benefited South Africans, whether part of the formal or informal economies.

“We, as leaders of these organisations, are establishing ASAPP to be more than just an industry body. We want it to be a collective force for change that complements the existing financial ecosystem by amplifying the voice of non-bank participants.”

Mali added that ASAPP aimed to advance digitisation, foster innovation and bridge the gap between South Africa's formal and informal economy.

“We seek to create an inclusive, efficient and customer centred payment ecosystem by ensuring fair infrastructure access, reduce the cost of digital payments and promote transparency and consumer empowerment.”