20 April 2023
Payments technology
South Africans embrace digital payment technology
When it comes to digital payments, two regions are driving accelerated growth: Africa and Southeast Asia. According to McKinsey & Company, between 2018 and 2021 non-cash retail payment transactions globally increased by a compound annual growth rate of 13%, however in developing markets growth was 25%.
The management consulting firm singled out Morocco, Nigeria and South Africa, all of whom are streaking ahead with digital payments uptake, as well as Kenya, India, the Philippines and Vietnam.
McKinsey highlighted the role of banks in driving comfort with digital payments by creating a 'solid payments infrastructure' and offering a range of options from banking apps to e-wallets and other ecosystem options.
With a wealth of digital solutions on hand, the Covid-19 push towards contactless payment options has softened consumer attitudes towards using digital payment methods. In South Africa, a Mastercard report from 2022 showed that 95% of consumers 'used at least one emerging digital payment method in the last year with usage expected to increase further'. The New Payment Index 2022 report noted that in a six-month period: '67% of consumers have made a purchase from an online marketplace, 66% have bought something from a mobile app and 49% have bought a service via an online subscription.'
Not only are South Africans increasingly technology savvy, but they are also content with nothing less than the very best digital payment solutions from around the world.
Opening international doors
Yashen Singh, CEO of Private Core Banking, explains that by rolling out excellent and reliable digital solutions across the business, RMB Private Bank clients can transact, pay and invest both locally and abroad; all from their preferred device.
One of his favourite solutions, which speaks very much to the international needs of the RMB Private Bank client, is the Global Account offering which streamlines travel and allows holders to guard against currency fluctuations by sending funds offshore when exchange rates are more appealing.
By making use of the annual Single Discretionary Allowance of R1 million per South African citizen (18 and older), clients can 'easily transfer from a Fusion account into US Dollars, Sterling or Euros, ensuring the peace of mind that comes with locking in your rate before you travel. This means you can just tap your Apple, Android phone or watch to access the tube in London or pay for a one-in-a-lifetime Michelin-starred meal in Denmark, without having to worry about the exchange rate or global sentiment towards the rand.'
Singh explains that the Global Account card comes free with the RMB Private Bank offering and also offers access to 1 000 international airport lounges outside South Africa through LoungeKey; with six complimentary visits a year and one free guest per visit. You also earn up to 4% in eBucks on all Global Account debit card purchases, enjoy comprehensive travel insurance when paying for your trips, and clients can even qualify for an extended warranty which doubles the original manufacturer's warranty for items purchased.
'RMB Private Bank clients also enjoy preferential forex rates,' adds Singh.
Transact when and where you want
The beauty of digital solutions is that they support the lifestyle and buying needs of a true global citizen, but they also have a range of applications and uses at home - many of which we now take for granted as part of the suite of payment technologies available to the RMB Private Bank client. And there is more to come, says Singh.
'From a payments point of view we are really embarking on providing seamless and safe payment channels for our clients,' he says, explaining that the payments team considers a number of factors when designing the bank's digital payments strategy, from convenience and safety to helping our clients experience seamless buying.
'For instance, when a client wants to make a person-to-person payment, we offer a range of convenient options like GeoPayment, if they are an RMB Private Bank client and on the RMB Private Bank App - this is great because you don't have to share and type in account details. Then, if you aren't close by, alternative ways include Pay 2 Cell, which allows you to send money simply by entering the cellphone number of the recipient,' explains Singh.
Similarly, PayMe allows RMB Private Bank clients to digitally request funds from family or friends. The service is free on the RMB Private Bank App and you only need to send a request to a cellphone number or to a contact on your phone. The RMB Private Bank payer is notified of the request immediately and simply has to accept the request for payment to be made.
Singh also highlights ChatPay, a relatively new addition to RMB Private Bank's payments platform which lets clients pay or request payment from any RMB Private Bank client using the RMB Private Bank App chat function - again, you don't need a bank account number to transact, it is all seamless and happens on one platform.
For payments to non-RMB Private Bank accounts, clients can use RMB Instant Payment which is a first-to-market, real-time instant payment solution that enables RMB Private Bank clients to send up to R3 000 to anyone for free and irrespective of the recipient's bank - by simply entering the card number.
RMB Private Bank is also one of the first banks to launch PayShap into the South African market. PayShap is a real-time, easy-to-use payment service which allows you to make or receive electronic payments either using an account number, ShapID or Shap Name. Clients need to register their cellphone number to get a ShapID. PayShap is free for RMB Private Bank clients on the bundled pricing option.
Turning to buying, Singh notes that RMB Private Bank clients are now increasingly open to tapping their devices to pay merchants, a behaviour change spurred on by the Covid-19 pandemic and the rise of contactless payments. 'The new trend in paying is to tap your device, be it Android or Apple or any other,' he explains.
In the past, notes Singh, tap to pay was not always an easy sell. 'We battled for a long time to get clients comfortable with tapping a card at the point of sale. Following the Covid-19 pandemic, we observed a rapid increase in the adoption of contactless payments with a noticeable shift in behaviour to tapping of devices post the launch of Apple Pay and Android Pay options. Contactless volumes as a consequence now make up more than contact payments volumes and is a behaviour shift that will remain with us for the foreseeable future.'
Next up? Effortless paying
The next area of focus for payments technology is focusing on taking the hassle out of monthly bill payments.
Singh explains that this new functionality is something he is particularly excited about: 'In a world of subscriptions - such as Netflix, Apple Music, Spotify and so forth - plus your more traditional bills like paying municipal bills, this solution allows our clients to pay bills using their virtual or physical card. In the process, our clients can also maximise their eBucks Reward points while transacting. This is new and it's great for clients because they can now do everything on one platform.' You don't need to carry your cards around any longer, you can even withdraw cash from an ATM without your card by tapping your phone or using the withdrawal functionality on your RMB Private Bank App.
How does it work?
Go to Pay > Bills and search bill via the bill payment provider option (EasyPay or Pay@) and make a payment from any RMB Private Bank card or RMB Private Bank virtual card, 'so, there is no need to capture your card details', explains Singh.
Both Singh and Giger suggest RMB Private Bank clients speak to their service advisors available 24/7 on chat to understand the various innovative digital solutions available or speak to your advisor regarding how to access the energy solutions by our preferred suppliers.
The management consulting firm singled out Morocco, Nigeria and South Africa, all of whom are streaking ahead with digital payments uptake, as well as Kenya, India, the Philippines and Vietnam.
McKinsey highlighted the role of banks in driving comfort with digital payments by creating a 'solid payments infrastructure' and offering a range of options from banking apps to e-wallets and other ecosystem options.
With a wealth of digital solutions on hand, the Covid-19 push towards contactless payment options has softened consumer attitudes towards using digital payment methods. In South Africa, a Mastercard report from 2022 showed that 95% of consumers 'used at least one emerging digital payment method in the last year with usage expected to increase further'. The New Payment Index 2022 report noted that in a six-month period: '67% of consumers have made a purchase from an online marketplace, 66% have bought something from a mobile app and 49% have bought a service via an online subscription.'
Not only are South Africans increasingly technology savvy, but they are also content with nothing less than the very best digital payment solutions from around the world.
Yashen Singh, CEO of Private Core Banking, explains that by rolling out excellent and reliable digital solutions across the business, RMB Private Bank clients can transact, pay and invest both locally and abroad; all from their preferred device.
One of his favourite solutions, which speaks very much to the international needs of the RMB Private Bank client, is the Global Account offering which streamlines travel and allows holders to guard against currency fluctuations by sending funds offshore when exchange rates are more appealing.
By making use of the annual Single Discretionary Allowance of R1 million per South African citizen (18 and older), clients can 'easily transfer from a Fusion account into US Dollars, Sterling or Euros, ensuring the peace of mind that comes with locking in your rate before you travel. This means you can just tap your Apple, Android phone or watch to access the tube in London or pay for a one-in-a-lifetime Michelin-starred meal in Denmark, without having to worry about the exchange rate or global sentiment towards the rand.'
Singh explains that the Global Account card comes free with the RMB Private Bank offering and also offers access to 1 000 international airport lounges outside South Africa through LoungeKey; with six complimentary visits a year and one free guest per visit. You also earn up to 4% in eBucks on all Global Account debit card purchases, enjoy comprehensive travel insurance when paying for your trips, and clients can even qualify for an extended warranty which doubles the original manufacturer's warranty for items purchased.
'RMB Private Bank clients also enjoy preferential forex rates,' adds Singh.
The beauty of digital solutions is that they support the lifestyle and buying needs of a true global citizen, but they also have a range of applications and uses at home - many of which we now take for granted as part of the suite of payment technologies available to the RMB Private Bank client. And there is more to come, says Singh.
'From a payments point of view we are really embarking on providing seamless and safe payment channels for our clients,' he says, explaining that the payments team considers a number of factors when designing the bank's digital payments strategy, from convenience and safety to helping our clients experience seamless buying.
'For instance, when a client wants to make a person-to-person payment, we offer a range of convenient options like GeoPayment, if they are an RMB Private Bank client and on the RMB Private Bank App - this is great because you don't have to share and type in account details. Then, if you aren't close by, alternative ways include Pay 2 Cell, which allows you to send money simply by entering the cellphone number of the recipient,' explains Singh.
Similarly, PayMe allows RMB Private Bank clients to digitally request funds from family or friends. The service is free on the RMB Private Bank App and you only need to send a request to a cellphone number or to a contact on your phone. The RMB Private Bank payer is notified of the request immediately and simply has to accept the request for payment to be made.
Singh also highlights ChatPay, a relatively new addition to RMB Private Bank's payments platform which lets clients pay or request payment from any RMB Private Bank client using the RMB Private Bank App chat function - again, you don't need a bank account number to transact, it is all seamless and happens on one platform.
For payments to non-RMB Private Bank accounts, clients can use RMB Instant Payment which is a first-to-market, real-time instant payment solution that enables RMB Private Bank clients to send up to R3 000 to anyone for free and irrespective of the recipient's bank - by simply entering the card number.
RMB Private Bank is also one of the first banks to launch PayShap into the South African market. PayShap is a real-time, easy-to-use payment service which allows you to make or receive electronic payments either using an account number, ShapID or Shap Name. Clients need to register their cellphone number to get a ShapID. PayShap is free for RMB Private Bank clients on the bundled pricing option.
Turning to buying, Singh notes that RMB Private Bank clients are now increasingly open to tapping their devices to pay merchants, a behaviour change spurred on by the Covid-19 pandemic and the rise of contactless payments. 'The new trend in paying is to tap your device, be it Android or Apple or any other,' he explains.
In the past, notes Singh, tap to pay was not always an easy sell. 'We battled for a long time to get clients comfortable with tapping a card at the point of sale. Following the Covid-19 pandemic, we observed a rapid increase in the adoption of contactless payments with a noticeable shift in behaviour to tapping of devices post the launch of Apple Pay and Android Pay options. Contactless volumes as a consequence now make up more than contact payments volumes and is a behaviour shift that will remain with us for the foreseeable future.'
The next area of focus for payments technology is focusing on taking the hassle out of monthly bill payments.
Singh explains that this new functionality is something he is particularly excited about: 'In a world of subscriptions - such as Netflix, Apple Music, Spotify and so forth - plus your more traditional bills like paying municipal bills, this solution allows our clients to pay bills using their virtual or physical card. In the process, our clients can also maximise their eBucks Reward points while transacting. This is new and it's great for clients because they can now do everything on one platform.' You don't need to carry your cards around any longer, you can even withdraw cash from an ATM without your card by tapping your phone or using the withdrawal functionality on your RMB Private Bank App.
Go to Pay > Bills and search bill via the bill payment provider option (EasyPay or Pay@) and make a payment from any RMB Private Bank card or RMB Private Bank virtual card, 'so, there is no need to capture your card details', explains Singh.
Both Singh and Giger suggest RMB Private Bank clients speak to their service advisors available 24/7 on chat to understand the various innovative digital solutions available or speak to your advisor regarding how to access the energy solutions by our preferred suppliers.