Automated clearing house and payments infrastructure company PayInc, previously known as BankservAfrica, says the South African Reserve Bank (SARB) has subscribed to a 50% equity shareholding in it, which establishes PayInc as a national payments utility, jointly owned by the central bank and South Africa’s commercial banks.

Concurrently, financial services firms Capitec and Investec have subscribed as direct shareholders, while Access Bank, African Bank, Capitec, Citibank SA and Investec will also subscribe for direct holdings in PayInc through the unbundling of the Dandyshelf shareholding.

At the conclusion of the transactions, Capitec will be an equal shareholder to the existing shareholder banks, namely Absa, FirstRand, Nedbank and Standard Bank, while the remaining banks will hold minority shares.

This marks the beginning of a new chapter in South Africa’s payments modernisation journey. This public–private partnership provides the foundation for building a digital payments ecosystem that is more secure, efficient and inclusive, thereby enabling greater economic participation for all South Africans, PayInc says.

“This moment reflects the culmination of a shared vision between the SARB, the banking industry and PayInc to transform South Africa’s payments infrastructure,” says PayInc CEO Stephen Linnell.

“With the SARB as a direct shareholder, PayInc is better positioned than ever to deliver modern, affordable and inclusive payment services that will unlock growth across our economy.

“The conclusion of this transaction sets the stage for the next era of payments in South Africa.

“As PayInc assumes a broader role as the national payments utility, we are working with all our stakeholders in scaling digital payments and enabling a payment ecosystem that is secure, efficient and inclusive,” he adds.

Established more than five decades ago as BankservAfrica, the company has played a vital role in enabling electronic, card, cash and cheque payments.

PayInc’s current focus is on digital payment innovation and inclusivity.