Introduction

GoTyme Bank, South Africa’s digital-first challenger lender, is reshaping the payments landscape by offering free instant transfers up to R5,000 through the PayShap system. The move positions the bank as a vocal opponent of fee-heavy practices in traditional banking.

What Happened

Since launching PayShap for its customers in 2023, GoTyme has absorbed the cost of interbank transfers rather than passing them to users. The PayShap rail has been available across South Africa since 2023, yet many banks still charge fees for second-second transfers. Marin Cundall, GoTyme’s managing executive for digital experience, argues that a modern, efficient bank can strategically choose not to pass every cost to the customer. Cheslyn Jacobs, the bank’s CEO, adds that charging people to move their own money instantly is a choice, not a technological inevitability.

Why This Matters

The impact extends beyond convenience. For small businesses—a plumber confirming payment before leaving a site, or a spaza shop verifying funds before handing over goods—fee-free instant payments mean faster cash flow and reduced settlement risk. Even small fees become unjustifiable on modest transactions, such as paying for lunch or sending money to family. GoTyme points to Brazil’s Pix and India’s Unified Payments Interface (UPI) as examples where real-time payments became infrastructure for mass economic activity, proving fee-free systems can coexist with robust financial ecosystems.

Key Takeaways

  • GoTyme Bank offers free instant payments up to R5,000 since 2023 via PayShap.
  • The bank argues digital-first models allow cost absorption rather than customer fees.
  • Small fees disproportionately affect low-value transactions like grocery payments or family remittances.
  • Comparisons to Pix and UPI show fee-free real-time payments can drive broader financial inclusion.
  • The wider banking industry is being urged to reconsider fee structures for interbank transfers.

Conclusion

GoTyme’s stance makes clear that instant payments are a strategic choice, not a technical necessity. As digital banking competition heats up, the pressure on traditional banks to eliminate instant-payment fees may intensify, potentially reshaping how South Africans move money daily.