Instant payments. No bank details. Just a cellphone number.
That’s the promise of PayShap — a simpler, cheaper way to send money in SA.
We’ll unpack how it works, which banks offer it, and whether it’s worth switching over.
What is PayShap?
PayShap is a real-time digital payment service in South Africa that allows people to send and receive money instantly using a cellphone number or bank account. It is designed for fast, low-cost transfers between banks and is backed by BankservAfrica and the South African Reserve Bank. The system uses a digital alias called a ShapID, typically a mobile number, instead of a traditional bank account number.
In short, it’s a way to move money instantly without needing someone’s banking details.
Pretty handy when you’re short on time or someone’s not keen to share their full account number, right?
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How does PayShap work?
PayShap works by linking a mobile number (ShapID) to a bank account, allowing users to send and receive money instantly. When someone sends money using a ShapID or bank account number, the funds are transferred in real time between participating banks.
PayShap is available to consumers through banking apps or USSD and does not require the recipient’s full account details.
Let’s look at how to actually use it, step by step.
How to use PayShap
Steps:
- Register for PayShap through your banking app or online banking.
- Link your cellphone number to your bank account to create a ShapID.
- Before sending money, confirm that the recipient is also registered for PayShap (ask them, or check your bank’s app if it shows PayShap-registered contacts).
- Choose to send money using the recipient’s ShapID (cellphone number) or their bank account number.
- Enter the amount and confirm the payment.
- The money reflects instantly in the recipient’s bank account.
Example:
Lindiwe needs to repay R150 to a friend for lunch. Instead of asking for account details, she opens her banking app, selects PayShap, enters her friend’s cellphone number (linked as a ShapID), and sends the money. Her friend receives the funds instantly, with no delays or extra details needed.
Important note: If the recipient has not registered for PayShap, the payment won’t go through using their cellphone number.
In that case, the sender will need to use the recipient’s full bank account details. That’s why both sender and recipient need to register for PayShap for the cellphone number feature to work.
A ShapID is essentially a digital alias — most commonly a cellphone number — that’s linked to a bank account. It eliminates the need to share or input long bank account numbers when making a payment.
It’s as easy as sending a WhatsApp — and just as fast.
Smart ways to use PayShap
PayShap is designed for everyday convenience, and when used thoughtfully, it can streamline small payments and reduce transaction fees.
It’s useful for:
- Splitting bills with friends or family after meals or group outings
- Paying domestic workers or casual labourers quickly and securely
- Sending urgent money to loved ones without visiting a bank or ATM
- Settling small business payments for freelancers, spaza shops, or home services
- Accepting digital payments at informal market stalls using a mobile number instead of card machines
Because transactions are instant and require minimal information, PayShap is especially practical for people who value speed and ease in personal or micro-business payments.
It’s built for real-life situations — whether at a family braai or a weekend market stall.
What is your estimate? *The calculation is an estimate actual amounts may vary. What is your estimate? *The calculation is an estimate actual amounts may vary.
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How much does PayShap cost?
PayShap transaction fees vary by bank, but many offer low-cost or even free transfers, especially for smaller amounts. Some banks, like TymeBank, offer free transactions. Others, like Capitec, charge between R1 and R3, while Standard Bank can charge up to R27 for larger amounts. Many banks offer reduced fees or free transfers for payments under R100.
Some banks may also structure fees based on transaction amounts or account types.
Here is a summary of PayShap costs by bank in 2025:
| Bank | Up to R100 | R100–R1,000 | R1,000–R3,000 | Notes |
| TymeBank | Free | Free | Free | All PayShap transactions are free. |
| Capitec | Free | R1.50 | R3.00 | Payments up to R100 are free; higher amounts incur small fees. |
| FNB | Free | R6.00 | R6.00 | Payments up to R100 are free; a flat fee for higher amounts. |
| Nedbank | Free | R1.00 | R7.50 | R1.00 for ShapID payments; R7.50 for payments to account numbers. |
| Standard Bank | R1.00 | R7.00 | R50.00 | Fees increase with transaction amount. |
| Absa | R2.50 | R6.00 | R45.00 | Fees escalate with higher transaction amounts. |
Translation? Small payments can be cheap — or even free — but it depends on your bank.
How long does PayShap take to reflect?
PayShap payments reflect within seconds. The system processes transfers in real time, so once a transaction is completed, the money appears in the recipient’s account immediately, even after hours, on weekends, or public holidays.
This instant settlement makes it ideal for urgent or time-sensitive payments, such as paying service providers or sending emergency funds to family.
It really is instant, like airtime top-up fast.
Which banks support PayShap?
As of 2025, the following banks support PayShap:
- TymeBank
- Capitec
- First National Bank (FNB)
- Nedbank
- Standard Bank
- Absa
- Discovery Bank
- African Bank
- Investec
Availability and features may vary, so it’s advisable to check with the specific bank for full functionality.
Next up — the pros and cons. Let’s weigh things up before jumping in.
Benefits of using PayShap
PayShap offers several practical advantages:
- ✅ Instant payments: No more waiting hours or days for funds to clear
- ✅ No account number needed: Transfers can be made using just a cellphone number
- ✅ Cost-effective: Lower fees than many traditional EFT or card payment options
- ✅ Convenient: Easy access through banking apps and USSD for a wide user base
- ✅ Secure and regulated: Supported by the South African Reserve Bank and BankservAfrica
- ✅ Financial inclusion: A valuable tool for those in informal markets or without full banking access
It ticks a lot of boxes: speed, simplicity, and savings.
Limitations of using PayShap
Despite its advantages, there are a few limitations to be aware of:
- 🟡 Variable transaction limits: While the system now allows up to R50,000 per transaction, not all banks have implemented this limit yet
- 🟡 Inconsistent fees: Charges can differ significantly between banks, especially for mid-sized transactions
- 🟡 Adoption still growing: Not everyone is registered, which may limit usability in some situations
- 🟡 Requires digital access: Users need access to a mobile device and a banking app or USSD to use PayShap
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Final thoughts
It isn’t just a trend — PayShap is changing how payments work in real time. And the impressive adoption by big banks is proof. No delays, no account numbers, no fuss.
If seamless and affordable transfers matter, now’s the time to register and give it a try.
If you want to take care of your debt to make your money go further. Talk to someone on our team at My Debt Hero. We specialise in helping South Africans with their debt.
