---
title: The Balancing Act of Public and Private Sector Collaboration in Payments
description: Discover how the SARB’s push for payments modernisation depends on public and private sector collaboration to drive instant payments adoption in South Africa.
image: https://blog.electrum.co.za/hubfs/OPC_Blog_cover_5.png
---

[![Electrum](https://blog.electrum.co.za/hs-fs/hubfs/raw_assets/public/Electrum_October2023/images/header-logo.png?width=500&height=150&name=header-logo.png "Electrum")](https://www.electrum.co.za/)

![Back Button](https://blog.electrum.co.za/hubfs/raw_assets/public/Electrum_October2023/images/back.svg)

Back

![Close Hamburger](https://blog.electrum.co.za/hubfs/raw_assets/public/Electrum_October2023/images/close.svg)

- [Home](https://www.electrum.co.za/)
- Schemes 
    - Schemes
    - Clearing House Payments 
          - [PayShap](https://www.electrum.co.za/schemes/payshap)
          - [Real-Time Clearing](https://www.electrum.co.za/schemes/real-time-clearing)
          - [EFT Debit & Credit](https://www.electrum.co.za/schemes/electronic-funds-transfer)
          - [Account Verification Services](https://www.electrum.co.za/schemes/account-verification-services)
          - Alternative Payment Methods
          - [Cash Vouchers](https://www.electrum.co.za/payments/cash-vouchers)
    - Value-Added Services 
          - [Prepaid Airtime and Data](https://www.electrum.co.za/digital-goods-and-services/prepaid-airtime-and-data)
          - [Prepaid Electricity](https://www.electrum.co.za/digital-goods-and-services/prepaid-electricity)
          - [Bill Payments](https://www.electrum.co.za/digital-goods-and-services/bill-payments)
          - [LOTTO](https://www.electrum.co.za/digital-goods-and-services/lotto)
          - [Travel and Event Ticketing](https://www.electrum.co.za/digital-goods-and-services/travel-and-event-ticketing)
          - [Digital Vouchers](https://www.electrum.co.za/digital-goods-and-services/digital-vouchers)
          - [Cash Vouchers](https://www.electrum.co.za/payments/cash-vouchers)
- Solutions 
    - Solutions
    - - [Clearing House Payments Modernisation](https://www.electrum.co.za/solutions/clearing-house-payments-modernisation-for-existing-banks)
          - [Turnkey Clearing House Payments](https://www.electrum.co.za/solutions/turnkey-clearing-house-payments-for-new-banks)
          - [Enterprise Payments Channel](https://www.electrum.co.za/solutions/enterprise-payments-channel)
          - [PayShap-Ready QR Code Issuing](https://www.electrum.co.za/solutions/payshap-ready-qr-code-issuing)
          - [PayShap for Retailers](https://www.electrum.co.za/solutions/payshap-for-retailers)
          - [Cash Voucher Issuing and Distribution for Banks](https://www.electrum.co.za/solutions/cash-voucher-issuing-and-distribution-for-banks)
          - [Cash Voucher Retail Expansion for Banks](https://www.electrum.co.za/solutions/cash-voucher-retail-expansion-for-banks)
          - [Retail Cash-In and Cash-Out Expansion](https://www.electrum.co.za/solutions/retail-cash-in-and-cash-out-expansion)
          - [High Volume POS-Integrated VAS Services](https://www.electrum.co.za/solutions/high-volume-pos-integrated-vas-services)
          - [Expanded VAS For High-Growth Digital Channels](https://www.electrum.co.za/solutions/expanded-vas-for-high-growth-digital-channels)
- [Developers](https://api.electrum.io/)
- Resources 
    - Resources
    - Documentation 
          - [Implementation Guides](https://www.electrum.co.za/documentation/product-guides)
          - [Solution Updates](https://www.electrum.co.za/solution-updates)
    - News 
          - [Blog](https://blog.electrum.co.za/?__hstc=17958374.bff00b489d6fac1f58737d8799a2a91d.1721396613638.1724837978417.1724842684665.23&__hssc=17958374.15.1724842684665&__hsfp=3812773586)
          - [Press Releases](https://www.electrum.co.za/press-releases)
    - (spacer)
    - Insights 
          - [Reports, whitepapers & flyers](https://www.electrum.co.za/insights)
    - Careers 
          - [Jobs & Opportunities](https://www.electrum.co.za/careers)
          - [Interview Process](https://www.electrum.co.za/careers/interview-process)
- [Trust](https://trust.electrumsoftware.com/)

- [Home](https://www.electrum.co.za/)
- Schemes 
    - Clearing House Payments 
          - [Payshap](https://www.electrum.co.za/schemes/payshap)
          - [Real-Time Clearing](https://www.electrum.co.za/schemes/real-time-clearing)
          - [EFT Debit & Credit](https://www.electrum.co.za/schemes/electronic-funds-transfer)
          - [Account Verification Services](https://www.electrum.co.za/schemes/account-verification-services)
    - Alternative Payment Methods 
          - [Cash Vouchers](https://www.electrum.co.za/payments/cash-vouchers)
    - Value-Added Services 
          - [Prepaid Airtime and Data](https://www.electrum.co.za/digital-goods-and-services/prepaid-airtime-and-data)
          - [Prepaid Electricity](https://www.electrum.co.za/digital-goods-and-services/prepaid-electricity)
          - [Bill Payments](https://www.electrum.co.za/digital-goods-and-services/bill-payments)
          - [LOTTO](https://www.electrum.co.za/digital-goods-and-services/lotto)
          - [Betting](https://www.electrum.co.za/digital-goods-and-services/betting)
          - [Travel and Event Ticketing](https://www.electrum.co.za/digital-goods-and-services/travel-and-event-ticketing)
          - [Digital Vouchers](https://www.electrum.co.za/digital-goods-and-services/digital-vouchers)
- Solutions 
    - [Clearing House Payments Modernisation](https://www.electrum.co.za/solutions/clearing-house-payments-modernisation-for-existing-banks)
    - [Turnkey Clearing House Payments](https://www.electrum.co.za/solutions/turnkey-clearing-house-payments-for-new-banks)
    - [Enterprise Payments Channel](https://www.electrum.co.za/solutions/enterprise-payments-channel)
    - [PayShap-Ready QR Code Issuing](https://www.electrum.co.za/solutions/payshap-ready-qr-code-issuing)
    - [PayShap for Retailers](https://www.electrum.co.za/solutions/payshap-for-retailers)
    - [Cash Voucher Issuing and Distribution for Banks](https://www.electrum.co.za/solutions/cash-voucher-issuing-and-distribution-for-banks)
    - [Cash Voucher Retail Expansion for Banks](https://www.electrum.co.za/solutions/cash-voucher-retail-expansion-for-banks)
    - [Retail Cash-In and Cash-Out Expansion](https://www.electrum.co.za/solutions/retail-cash-in-and-cash-out-expansion)
    - [High Volume POS-Integrated VAS Services](https://www.electrum.co.za/solutions/high-volume-pos-integrated-vas-services)
    - [Expanded VAS For High-Growth Digital Channels](https://www.electrum.co.za/solutions/expanded-vas-for-high-growth-digital-channels)
- [Developers](https://api.electrum.io/)
- Resources 
    - Documentation 
          - [Implementation Guides](https://www.electrum.co.za/documentation/product-guides)
          - [Solution Updates](https://www.electrum.co.za/solution-updates)
    - News 
          - [Blog](https://blog.electrum.co.za/?__hstc=17958374.bff00b489d6fac1f58737d8799a2a91d.1721396613638.1724837978417.1724842684665.23&__hssc=17958374.47.1724842684665&__hsfp=3812773586)
          - [Press Releases](https://www.electrum.co.za/press-releases)
    - Insights 
          - [Reports, whitepapers & flyers](https://www.electrum.co.za/insights)
    - Careers 
          - [Jobs & Opportunities](https://www.electrum.co.za/careers)
          - [Interview Process](https://www.electrum.co.za/careers/interview-process)
- [Trust](https://trust.electrumsoftware.com/)

[![Contact](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/142132879/7f102097-b88c-49fd-b727-90c8e1009d5a.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/142132879/7f102097-b88c-49fd-b727-90c8e1009d5a)

![Hamburger](https://blog.electrum.co.za/hubfs/raw_assets/public/Electrum_October2023/images/hamburger.svg)

[Payments](https://blog.electrum.co.za/tag/payments)

[Banks](https://blog.electrum.co.za/tag/banks)

[Event](https://blog.electrum.co.za/tag/event)

[Open Payments Conference](https://blog.electrum.co.za/tag/open-payments-conference)

# The Balancing Act of Public and Private Sector Collaboration in Payments

 September 30, 2024

<https://blog.electrum.co.za/author/kganya-molefe> ![Kganya Molefe](https://blog.electrum.co.za/hubfs/Blog%20Assets/Author%20Images/Kganya%20Molefe.jpeg)

 Kganya Molefe

![Post Header](https://blog.electrum.co.za/hubfs/raw_assets/public/Electrum_October2023/images/banner-bg.svg)

![The Balancing Act of Public and Private Sector Collaboration in Payments](https://blog.electrum.co.za/hubfs/OPC_Blog_cover_5.png)

**South Africa is at a tipping point of next-generation payments and now more than ever, the regulator and banks need to work together to modernise the ecosystem and drive digital payments adoption. **

South Africa’s payments system is one of the most advanced globally, but payments innovation has slowed somewhat over the past four to five years, as highlighted at this year’s Open Payments Conference. Consumers may not have been fully aware of this slowdown, however, the global demand for instant payments is growing and the South African Reserve Bank (SARB) is increasingly focused on accelerating payments modernisation efforts to promote financial inclusion.

A key project of the SARB’s [Payments Ecosystem Modernisation](https://blog.electrum.co.za/pem-the-future-of-south-africas-payments-landscape) (PEM) programme is the establishment of a Public Payments Utility (PPU), an instant payments system that, like any infrastructure such as transport or healthcare, serves the public in the business of moving money. To achieve this, the regulator cannot act alone. Collaboration with the private sector is necessary to drive the adoption of instant payments methods. However, this introduces several challenges and roadblocks that may slow progress. Let’s consider three.

## Moving swiftly and cautiously

The regulator's primary goal is to ensure the reliability and safety of the payments system. This naturally leads to a conservative approach, carefully managing risks that could undermine the system’s integrity. However, this doesn't mean the regulator intends to move slowly—improving financial inclusion is urgent, as it’s key to enhancing the economic prospects of many South Africans. So, what could cause delays?

Incumbents may be hesitant to move forward quickly after already investing heavily in similar solutions. Many have built systems around real-time clearing (RTC) and the rapid payments programme’s (RPP) PayShap. Justifying another investment in the proposed PPU, which aims to achieve similar goals, might be challenging for stakeholders.

A compromise could be to leverage existing infrastructure, like PayShap, as the foundation of the PPU. This approach would allow banks with RPP investments to implement the public utility more easily, helping the regulator move faster with a market-tested solution.

## Establishing regulatory frameworks that encourage competition

Is the regulator a policeman or a fire marshal? Both aim to protect the safety of the citizens in their care, but they exercise their authority in very different ways. 

While a policeman reacts to events that have already occurred, a regulator is more like a fire marshal who works to *prevent* fires within their jurisdiction. In this analogy, each building represents a bank or fintech company that must comply with fire safety standards to avoid catastrophic fires that could spread to other buildings. To ensure this, the regulator periodically reviews these service providers and their safety measures to identify any gaps that might pose risks to consumers.

The SARB’s goal is to provide customers with more services at a better price but they also understand that trust in their ability to keep the ecosystem safe is their most valuable asset. This perspective places the regulator in a stronger position to develop frameworks that promote competition and security in the payments system. 

> “Trust is the only currency that counts, especially in payments” - Industry leader, The 2024 Open Payments Conference 

## Considering commercial interests 

The most sensitive point of tension in public-private collaboration lies in financial interests. Unlike private entities, the regulator isn't driven by profit. The PPU, like similar systems in India and Brazil, aims to offer instant payments that are free for consumers and low cost to merchants. This reduction in fees means banks will need to rethink their business models as competition for revenue increases. 

To stay competitive banks should focus on early innovation and [edge use cases](https://blog.electrum.co.za/3-key-headlines-from-the-2024-open-payments-conference). By investing in products like [Request to Pay (RTP)](https://blog.electrum.co.za/getting-ready-for-rtp-the-next-step-for-payshap) or [QR code payments](https://www.electrum.co.za/solutions/payshap-ready-qr-code-issuing) for retailers, they signal readiness to compete in a highly competitive payments landscape and future-proof themselves for the evolution of South African payments.

*Electrum’s local expertise can help your bank take its payments solutions to the next level. [Contact us](https://www.electrum.co.za/contact) to explore how we can get you ready for next-generation payments.*

![Kganya Molefe](https://blog.electrum.co.za/hubfs/Blog%20Assets/Author%20Images/Kganya%20Molefe.jpeg)

Kganya Molefe

Kganya is a freelance Content Writer based in Johannesburg with experience in African Payments. When she’s not writing, Kganya enjoys journaling the old-fashioned way, listening to podcasts during her long walks, and passionately discussing the importance of low-cost, real-time, pan-African payment solutions with her friends and family.

[More posts by  Kganya Molefe](https://blog.electrum.co.za/author/kganya-molefe)

Recent Blog Posts

![What You Need to Know About the SARB’s Public Payments Utility](https://blog.electrum.co.za/hubfs/OPC_blog_cover_4.png)

### What You Need to Know About the SARB’s Public Payments Utility

<https://blog.electrum.co.za/what-you-need-to-know-about-the-sarbs-public-payments-utility>

![The Hallmarks of Successful Collaboration](https://blog.electrum.co.za/hubfs/OPC_Blog%20_cover_2.png)

### The Hallmarks of Successful Collaboration

<https://blog.electrum.co.za/the-hallmarks-of-successful-collaboration>

![Why SWIFT Still Matters for Cross-Border Payments](https://blog.electrum.co.za/hubfs/The%20Evolution%20of%20SWIFT_Blog%20Cover_V1%20(1).jpg)

### Why SWIFT Still Matters for Cross-Border Payments

<https://blog.electrum.co.za/why-swift-still-matters-for-cross-border-payments>

# Electrum Newsletter

 Quarterly insights and news to help you keep up with the latest changes in the payments landscape

[![Electrum](https://blog.electrum.co.za/hs-fs/hubfs/Electrum_October2023/Images/footer-logo.png?width=500&height=150&name=footer-logo.png "Electrum")](https://www.electrum.co.za/)

###### Company

- [Trust](https://trust.electrumsoftware.com/)
- [About us](https://www.electrum.co.za/about-us)
- [Press Releases](https://www.electrum.co.za/press-releases)
- [Jobs and Opportunities](https://www.electrum.co.za/careers)
- [Interview Process](https://www.electrum.co.za/careers/interview-process)

###### Clearing House Payments

- [PayShap](https://www.electrum.co.za/schemes/payshap)
- [Real-Time Clearing](https://www.electrum.co.za/schemes/real-time-clearing)
- [EFT Debit & Credit](https://www.electrum.co.za/schemes/electronic-funds-transfer)
- [Account Verification Services](https://www.electrum.co.za/schemes/account-verification-services)

###### Value-Added Services

- [Prepaid Airtime and Data](https://www.electrum.co.za/digital-goods-and-services/prepaid-airtime-and-data)
- [Prepaid Electricity](https://www.electrum.co.za/digital-goods-and-services/prepaid-electricity)
- [Bill Payments](https://www.electrum.co.za/digital-goods-and-services/bill-payments)
- [LOTTO](https://www.electrum.co.za/digital-goods-and-services/lotto)
- [Travel and Event Ticketing](https://www.electrum.co.za/digital-goods-and-services/travel-and-event-ticketing)
- [Digital Vouchers](https://www.electrum.co.za/digital-goods-and-services/digital-vouchers)
- [Cash Vouchers](https://www.electrum.co.za/payments/cash-vouchers)

###### Solutions

- [Clearing House Payments Modernisation](https://www.electrum.co.za/solutions/clearing-house-payments-modernisation-for-existing-banks)
- [Turnkey Clearing House Payments](https://www.electrum.co.za/solutions/turnkey-clearing-house-payments-for-new-banks)
- [Enterprise Payments Channel](https://www.electrum.co.za/solutions/enterprise-payments-channel)
- [PayShap-Ready QR Code Issuing](https://www.electrum.co.za/solutions/payshap-ready-qr-code-issuing)
- [PayShap for Retailers](https://www.electrum.co.za/solutions/payshap-for-retailers)
- [Cash Voucher Issuing and Distribution for Banks](https://www.electrum.co.za/solutions/cash-voucher-issuing-and-distribution-for-banks)
- [Cash Voucher Retail Expansion for Banks](https://www.electrum.co.za/solutions/cash-voucher-retail-expansion-for-banks)
- [Retail Cash-In and Cash-Out Expansion](https://www.electrum.co.za/solutions/retail-cash-in-and-cash-out-expansion)
- [High Volume POS-Integrated VAS Services](https://www.electrum.co.za/solutions/high-volume-pos-integrated-vas-services)
- [Expanded VAS For High-Growth Digital Channels](https://www.electrum.co.za/solutions/expanded-vas-for-high-growth-digital-channels)

###### Resources

- [Implementation Guides](https://www.electrum.co.za/documentation/product-guides)
- [Solution Updates](https://www.electrum.co.za/solution-updates)
- [Reports, whitepapers & flyers](https://www.electrum.co.za/insights)
- [Blog](https://www.electrum.co.za/blog)
- [Developer Portal](https://api.electrum.io/)

###### Contact us

- [Electrum Payments,Building 3, Podium Level, Riverlands Mall51 Gogosoa StreetObservatoryCape Town 7925, South Africa](https://g.page/ElectrumPayments?share)
- [hello@electrum.co.za](mailto:hello@electrum.co.za)
- [+27 21 448 6422 (office)](tel:+27214486422)
- [+27 21 447 1227 (support)](tel:+27214471227)

© 2026 Electrum Payments

- [Terms of use](https://www.electrum.co.za/policies/terms-of-use)
- [Privacy Policy](https://www.electrum.co.za/policies/privacy-policy)
- [Vulnerability Disclosure](https://www.electrum.co.za/policies/vulnerability-disclosure)
- [PAIA manual](https://uploads-ssl.webflow.com/60e2dc7cef09ba877f290236/625541de9b2069f312c8ff67_202112-Electrum-PAIA-Manual-290621.pdf)

[![linkedin](https://blog.electrum.co.za/hubfs/Electrum_October2023/Images/linkedin.svg "linkedin")](https://www.linkedin.com/company/electrum-payments)

[![facebook](https://blog.electrum.co.za/hubfs/Electrum_October2023/Images/facebook.svg "facebook")](https://www.facebook.com/ElectrumPayments/)

[![instagram](https://blog.electrum.co.za/hubfs/Electrum_October2023/Images/instagram.svg "instagram")](https://www.instagram.com/electrum_payments/)

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Kganya Molefe",
    "url" : "https://blog.electrum.co.za/author/kganya-molefe"
  },
  "dateModified" : "2024-09-30T09:58:53.517Z",
  "datePublished" : "2024-09-30T09:58:53.000Z",
  "headline" : "The Balancing Act of Public and Private Sector Collaboration in Payments",
  "image" : [ "https://blog.electrum.co.za/hubfs/OPC_Blog_cover_5.png" ],
  "mainEntityOfPage" : {
    "@id" : "https://blog.electrum.co.za/the-balancing-act-of-public-and-private-sector-collaboration-in-payments",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://blog.electrum.co.za/hubfs/electrum-logo-on-dark-1.svg"
    },
    "name" : "Electrum"
  }
}
```