Rapid payments infrastructure for financial inclusion

RPP addresses some fundamental needs for a more inclusive ecosystem

Around the world, we are seeing the adoption of new payment ecosystems which can shift the focus away from innovating for the financially included, to addressing the needs of the masses, with the goal of moving away from cash and towards digital.

Global Adoption of Rapid Payments

The concept of Rapid Payments which allows for the instant clearing of low-value transactions via a unique identifier (proxy) is gaining global adoption and awareness by addressing the needs and concerns of the unbanked and underbanked market. Trust, cost transparency, and ease of use are some of the themes driving global adoption.

Solutions that empathise with end users that are not tech-savvy and have an extremely low financial bottom line are most effective. South Africa has also initiated a regulatory push and launched PayShap to move away from cash in the long-term. Looking at international adoption of rapid payment solutions, it is not a silver bullet. However, it provides a platform that addresses some fundamental needs to open the door for a more inclusive ecosystem. Micro ecosystems, such as informal traders, can be targeted as they potentially have a large unbanked and underbanked audience, and logistical issues that digital transactions would solve for.

For RPP to become successful, it requires a significant investment in financial education to alleviate the inherent trust and transparency issues.

What will it take to successfully digitise the economy?

In our newest publication we explore what the future of payments looks like for South Africa. What can smart phones offer to accelerate the adoption of digital payments? What can we learn from global markets? And what does industry need to succeed in digitising the economy?

Read more by downloading the publication below.