PayInc

[gentle music] Almost two years later, we're no longer talking entirely about policy intentions.

PASA's old payment system management functions have migrated to the Reserve Bank and Pay Inc.

We see the architecture around paying changing.

The national payment system framework itself is being rewritten.

We think PayShap has made a lot of progress, yet it's still not the day-to-day de facto payment method in society.

The things that I think are positives, the following ones.

One, we've seen a change in the creation of Pay Inc.

I think that that is a lot of work, and it's a lot of collaboration to get, uh, that model to work.

And this is what we commonly refer to today as the PayShop payment method, which is still gaining traction.

And this is an initiative that is driven by the Reserve Bank and also being driven by PayInc, which is the national payments utility of which Saab owns 50% along with a number of the other banks.

So this infrastructure is now being deployed.

It's being built.

It's a banking industry.

There's Bankserv who now bec- called Pay Inc.

Oh, it's a banking industry thing.

Yes.

There's more on power987.co.za.

According to the latest Pay Inc.

Economic Index, economic activity strengthened in August, offering some signs of resilience after a contraction in the second quarter.

But with renewed oil price pressures and persistent uncertainty weighing on the outlook, we're joined now by Elise Kruger, an independent economist, to unpack what the latest data means for South Africa's growth prospects.

And Elise, a very good evening and good to have you with us on the program.

Good evening, your people.

So, Elise, of course, as I pointed out, the improvement in August, the Pay Inc. economic index rising 0.8% month on month after a revised 0.6% increase in July.

But essentially, how much momentum does that suggest the economy has going into the third quarter?

The endeavor by the payments ecosystem modernization initiative led by the central bank is really about creating a utility where interoperability is real time, where payments are immediate, and that they are inclusive of all participants of the market, both providers of payments as well as on the buy side, which has often been the area where most investment has been required.

And that utility is really what we see happening today with the old banks of Africa giving way to Pay Inc and the Reserve Bank taking a much greater direct stake, equity stake in that business.

Yes, indeed.

And look, the reality is that what we have come through in the last 10 years is that The ecosystem itself, the utility space of the ecosystem is where most disruption is concerned.