Information and communications technology group MTN South Africa has partnered with Investec and Electrum to introduce the PayShap solution on its Mobile Money (MoMo) platform.

The collaboration aims to provide users with an instant, cost-effective mobile payment system, with MoMo becoming the first non-banking player to offer PayShap, which will address a critical gap in serving the unbanked population.

Investec is the banking partner and Electrum is the technical partner, the companies said in a joint statement issued on Wednesday, noting that the collaboration, which draws inspiration from successful global models such as Reliance Jio and UPI AutoPay in India, where 80% of transactions are executed through a similar rapid payment solution, aims to reshape the digital payments landscape in South Africa for both prepaid and contract subscribers.

Jio’s integration with the UPI AutoPay facility in 2022 made it the first player in the telecommunications industry to go live with a unique e-mandate feature that was launched by the National Payments Corporation of India.

“We are thrilled to pioneer the integration of PayShap on MoMo, redefining the landscape of mobile payments and helping to drive financial inclusion. This strategic collaboration will empower our users, especially the unbanked community, with unprecedented accessibility and convenience,” said MTN South Africa FinTech CEO Bradwin Roper.

“Investec is proud to be the banking partner for this initiative. By bridging the gap between traditional banking and mobile solutions, we aim to foster a financial ecosystem that serves all segments of society,” said Investec Bank CEO Cumesh Moodliar.

Electrum brings expertise to ensure the seamless implementation of PayShap.

“Through innovation and collaboration with MTN and Investec, this is an exciting example of a next-generation payments solution. Electrum is proud to have contributed to this transformative project, showcasing the important role that cloud payments technology must play towards South Africa’s payments modernisation efforts,” added Electrum CEO and cofounder Dave Glass.

“We are excited about the future of the PayShap solution in South Africa. Not only does it represent a significant milestone in the evolution of digital finance in South Africa, but it will also increase financial inclusivity, connecting more people to the safer and more efficient world of mobile payments,” concluded Roper.

The availability of the PayShap solution on the MoMo platform is subject to all necessary approvals.

African Bank remains the sponsor bank for MoMo wallet.