Payment providers unite to transform South Africa’s financial landscape

South Africa’s fintech industry has launched the Association for South African Payment Providers (ASAPP). Founded by eight leading non-bank payment companies, including Altron, Hello Group, iKhokha, and Lesaka, this newly established body aims to accelerate the growth of the country’s digital payment ecosystem by promoting fair infrastructure access, lowering transaction costs, and ensuring greater transparency in financial services.

The formation of ASAPP marks a turning point in South Africa’s efforts to modernize its payment landscape and improve financial inclusion. Johan Gellatly, Managing Director of Altron FinTech, emphasized that the association is built on three key objectives: enhancing financial access for the unbanked, reducing settlement times and wholesale costs, and fostering inclusive payment solutions. South Africa continues to have a large portion of its population excluded from formal banking services, and ASAPP aims to bridge this gap by advocating for more accessible digital payment solutions that cater to underserved communities. A faster, more cost-effective payment infrastructure will not only benefit businesses but also consumers, making digital transactions more viable and reducing reliance on cash. By working with regulators and financial institutions, ASAPP will push for policies that encourage innovation, increase competition, and create a dynamic financial ecosystem.

Despite the growth of digital payments, cash remains dominant in many parts of South Africa, particularly in townships, villages, and city centers. ASAPP President Lincoln Mali highlighted the inefficiencies and risks associated with cash dependency and stressed that it is unsustainable for the economy in the long run. By driving digital payment adoption, the association hopes to create a safer, more accessible, and more efficient financial environment for businesses and individuals alike.

ASAPP’s launch comes at a critical time as South Africa navigates an increasingly digital economy. The association is set to collaborate closely with regulators, banks, fintech companies, and other stakeholders to address pressing challenges such as high transaction fees, slow settlement processes, and limited infrastructure access. With ASAPP leading the charge, the future of payments in South Africa is poised for significant transformation. By fostering innovation, removing barriers to entry, and ensuring fair competition, the association will play a crucial role in reshaping the financial landscape, opening new opportunities, and securing South Africa’s place in the evolving global digital economy.

By:  Nana Appiah Acquaye