GoTyme Bank CEO Cheslyn Jacobs says banks should stop treating instant digital payments as a premium service, arguing that customers should not have to pay extra to move their own money.
Jacobs said customers have paid transaction fees to transfer money between accounts, but advances in payment technology mean those costs are becoming harder to justify.
Instant payments must be standard
He said instant payments, such as PayShap, should become a standard feature of modern banking.
With GoTyme offering free PayShap services, he said even relatively small transaction charges can become expensive for people who regularly send money to relatives, pay domestic workers, split household expenses, or make payments to small businesses.
He said these fees continue to discourage wider use of digital payments at a time when South Africa is trying to reduce its reliance on cash and improve financial inclusion.
“PayShap has fundamentally changed what is possible. The technology now exists to move money instantly, safely and at any time of the day. The next step is ensuring customers don’t have to think twice about using it because of transaction fees.
“Competition is shifting from who offers instant payments to who delivers the simplest and most seamless banking experience. Customers don’t want to make decisions about payment rails or transaction fees. They simply want to move money quickly, safely and affordably,” said Jacobs.
Speed, simplicity and affordability
Jacobs emphasised that payment systems should work in the background in the same way consumers expect internet connectivity to work, without users having to consider additional costs every time they make a payment.
“The biggest opportunity isn’t just making payments faster. It’s making digital payments so accessible that they become the default way South Africans exchange value,” said Jacobs.
“As customers become accustomed to instant payments, they’ll increasingly question why moving their own money should come with an additional fee. The future of payments is one where speed, simplicity and affordability are no longer differentiators, they’re simply expected,” he added.
- GoTyme Bank CEO Cheslyn Jacobs advocates for instant digital payments to be standard and free, not treated as premium services with extra fees.
- Jacobs highlights that payment technology advancements make transaction fees for moving money between accounts increasingly unjustifiable.
- GoTyme offers free PayShap services, addressing how small charges can add up for frequent users like those sending money to relatives or paying small businesses.
- Transaction fees deter wider adoption of digital payments, which is a setback for South Africa’s goals to reduce cash reliance and enhance financial inclusion.
- Jacobs stresses that the future of payments should focus on speed, simplicity, and affordability, making digital transactions seamless and free from extra costs.
