GoTyme dares rival banks to make instant payments free
GoTyme dares rival banks to make instant payments free as the digital bank challenges South Africa’s banking industry to remove charges on instant money transfers and make faster payments accessible to more customers.
GoTyme Bank says its customers now originate approximately 26% of PayShap payments made to cellphone numbers, highlighting the growing popularity of its low-cost digital payment services.
The bank revealed the figures during a media briefing in Johannesburg on Thursday, where it also reported strong growth in PayShap usage and customer adoption.
According to GoTyme, the number of customers using PayShap has increased by more than 250% year on year. Almost 70% of payments made by its customers are now instant and free, helping consumers avoid traditional transfer charges.
The bank estimates that customers save more than R150 million annually because qualifying instant payments do not carry a fee.
GoTyme’s challenge to rival banks comes as South African consumers continue to look for affordable ways to transfer money between different financial institutions.
GoTyme Bank challenges the banking industry over fees
GoTyme Bank wants instant payments to become a standard feature across South Africa’s banking sector rather than a service that gives individual banks a competitive advantage.
Chief executive officer Cheslyn Jacobs said the bank wants other financial institutions to follow its approach by making instant payments free.
The challenge comes amid ongoing complaints about the fees charged for transferring money between banks.
Jacobs said the bank did not want free instant payments to remain a GoTyme advantage permanently. Instead, it wants the entire industry to adopt the same approach.
His comments reflect a growing debate about the cost of everyday banking services and whether customers should continue paying additional charges to receive money immediately.
Customers save more than R150 million annually
GoTyme estimates that its customers save more than R150 million each year through qualifying instant payments that carry no transaction fee.
This saving highlights the potential financial benefit of reducing banking charges, particularly for people who regularly send money to family members, friends and other recipients.
Traditional interbank transfers can involve fees and may take longer to reflect, depending on the payment method and participating institutions.
By making qualifying instant payments free, GoTyme aims to reduce the cost of moving money while encouraging customers to use digital banking services.
The bank’s figures also suggest that affordability can influence how quickly consumers adopt new payment technologies.
PayShap adoption grows in South Africa
PayShap is an instant payment system operated by PayInc, formerly known as BankservAfrica.
The service allows customers to transfer money between participating banks almost immediately, without relying on traditional account-to-account transfer processes.
One of its useful features is the ability to send money using a cellphone number registered as a ShapID.
This means customers do not necessarily need to ask recipients for their full bank account details before making a payment.
PayShap was launched in March 2023 to support faster, more convenient payments across South Africa’s banking system.
PayInc reported in June that the platform had passed one billion cumulative transactions and was processing more than 60 million transactions each month.
Why instant payments matter to customers
Instant payments offer consumers a faster way to move money when they need to settle expenses, support relatives or make urgent transfers.
For example, someone can send money to a registered cellphone number without having to wait for a conventional payment to clear.
The convenience can be particularly valuable when customers need to transfer funds outside normal banking hours.
However, the cost of using instant payment services has remained an important concern.
Fees can discourage customers from using the system regularly, especially when they are sending small amounts.
GoTyme’s position is that instant payments should not only be fast but also affordable.
Banking fees remain a challenge for PayShap
Although PayShap has recorded significant transaction growth, banking fees have remained a recurring concern among consumers.
PayInc has previously acknowledged that costs and inconsistent experiences across different banking applications have slowed wider adoption.
Customers may encounter different charges and payment processes depending on which bank they use.
This can make the service less straightforward, particularly when people are comparing the cost of instant payments with traditional transfers.
GoTyme believes that removing fees could encourage more customers to use PayShap and help establish instant payments as a normal part of everyday banking.
Why rival banks are being challenged
Jacobs has previously argued that major banks face a potential conflict of interest when promoting cheaper payment systems.
His argument is that encouraging customers to use lower-cost payment options could reduce income generated through existing transaction fees.
GoTyme’s approach is to automatically route payments through PayShap as the cheapest available option within its app, according to the information provided by the bank.
This helps explain why the bank says it has achieved strong customer adoption.
The challenge to rival banks is therefore not only about pricing. It also raises questions about how financial institutions balance transaction revenue, customer satisfaction and the development of modern payment systems.
GoTyme reports strong customer and financial growth
Beyond its PayShap performance, GoTyme reported growth across several areas of its business.
The bank said spending through its virtual cards increased by 240% year on year, including growth of 65% in the most recent quarter.
It also confirmed that more than four million customers had moved onto its new banking application during the year.
GoTyme now has more than 13 million customers and expects to become South Africa’s third-largest bank by monthly active users by the first quarter of 2027.
The bank did not specify the data used to support its projected ranking.
Its financial performance also showed growth, with total income increasing by 25% to R2.72 billion.
Customer deposits rose by 27% to R9.69 billion.
Virtual card spending increases
The reported increase in virtual card spending suggests that more customers are using digital payment options for everyday purchases.
Virtual cards allow customers to make online payments without necessarily using a physical bank card.
Their growing use reflects the wider shift towards digital banking and mobile-first financial services.
For GoTyme, increased virtual card activity adds to its expanding range of digital services as it competes for customers in South Africa’s banking market.
GoTyme outlines plans for 2027
GoTyme has outlined several plans for 2027 as it looks to expand its products and services.
These include introducing a credit card, increasing personal lending through its partnership with Sanlam and launching a new rewards programme.
The bank is also developing ways to give customers access to investments and digital assets.
However, those services will depend on the necessary regulatory and licensing approvals.
The planned expansion indicates that GoTyme wants to move beyond everyday transactions and offer customers a broader range of financial products.
More competition in South Africa’s digital banking sector
The bank’s expansion comes as competition in South Africa’s financial services industry continues to develop.
Digital banks are increasingly competing through mobile applications, lower fees, convenient payment options and additional financial products.
For consumers, greater competition could create opportunities to access more affordable services.
However, customers should still compare transaction costs, account conditions, security features and product terms before choosing a banking provider.
The debate around PayShap fees also highlights the importance of transparent pricing as instant payment systems become more widely used.
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Conclusion: GoTyme wants free instant payments to become standard
GoTyme dares rival banks to make instant payments free as it seeks to change how South Africans send money between financial institutions.
With its customers reportedly originating about 26% of PayShap cellphone payments and usage growing by more than 250% year on year, the digital bank says its approach is delivering strong results.
Its estimate that customers save more than R150 million annually highlights the potential value of removing fees from qualifying instant transfers.
As GoTyme prepares to expand its services in 2027, the challenge to rival banks could add pressure on the industry to reconsider how it charges customers for instant payments.
Ultimately, the biggest beneficiaries could be consumers if more banks make fast, convenient and affordable money transfers part of their standard banking services.
References from mainstream media
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TechCentral: “GoTyme dares big banks: free instant payments” – https://techcentral.co.za/gotyme-dares-big-banks-free-instant-payments/287800/
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Tzaneen Voice: “GoTyme Bank Challenges Rival Banks to Make PayShap Instant Payments Free” – https://tzaneenvoice.co.za/gotyme-bank-challenges-rival-banks-to-make-payshap-instant-payments-free/
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Geno: “GoTyme dares rival banks to make instant payments free” – https://www.geno.co.za/2026/10/29/gotyme-dares-rival-banks-to-make-instant-payments-free/
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