South African Reserve Bank deepens role in digital payments with PayInc stake

The Reserve Bank’s decision to acquire half of PayInc aims to accelerate financial inclusion, strengthen competition, and build a payments system that serves both banks and the public interest.

PayInc CEO Stephen Linnell.

The South African Reserve Bank (SARB), the country’s monetary authority, is moving to reshape the national payments landscape by acquiring a 50% stake in PayInc, the clearing house formerly known as BankservAfrica. The Competition Commission recently recommended that the deal be approved without conditions, paving the way for a new ownership structure that places banks and the public sector on equal footing.

PayInc, which operates the PayShap rapid payments platform, will no longer function solely as a utility service for commercial banks. According to CEO Stephen Linnell, the new model reflects a broader public mission and strategic partnership with the Reserve Bank. “We’re now serving the public good with strategic intent,” he said, highlighting that both former bank shareholders and the SARB are aligned in this vision.

As part of the restructuring, Capitec will join Absa, FNB, Nedbank and Standard Bank as direct shareholders for the first time. Smaller institutions that previously held shares through the Dandy Shelf consortium will also move to direct ownership.

The Reserve Bank’s interest in PayInc stems from its broader Payment Ecosystem Modernisation agenda, which noted that PayShap has so far struggled to displace cash, especially among low-income consumers. By investing in PayInc’s infrastructure, SARB hopes to create a resilient and inclusive national utility capable of powering South Africa’s digital economy.

Industry leaders view this public-private partnership as part of a growing global trend. PayInc’s strategy chief, Ruhling Herbst, explained that regulators worldwide are opening space for new players such as retailers and mobile operators to participate in payments. They are also aligning modernisation efforts with public policy objectives like those outlined in Operation Vulindlela, a government reform initiative focused on economic growth and digital transformation.

Beyond inclusion, the initiative also carries a competitive edge. Standard Bank executive Nthabiseng Mohale noted that PayInc, in its role as a payments operator, must compete with global giants like Visa and Mastercard. The Reserve Bank’s involvement, she said, ensures that South Africa can build a locally anchored payments utility with the resources to innovate and expand, rather than being limited by the budgets of commercial shareholders alone.