Retailers are facing a 'Catch-22'. The QR+ standard is still in the technical proof-of-concept phase, and its implementation timeline remains uncertain. Additionally, EMVCo will likely be phased out once QR+ is ready.
The opportunity to be the first retailer to implement PayShap at point-of-sale (POS) is available, and waiting now means falling behind.
Since its 2023 launch, PayShap has evolved into a dominant force in South African payments. Over the last year, adoption has followed a 'hockey-stick' curve, reaching more than 777 million transactions since its launch. This growth has mostly been driven by greater bank adoption.
QR+ is a new standard that aims to simplify and improve interoperability across multiple payment rails, creating a uniform ‘way to pay’ for customers. It is a common framework for payment initiation requests, such as QR codes, that every provider can interact with. The goal is to create a universal translator for consumers to make payments across banks, retailers, and payment solution providers.
If implemented as described above, QR+ offers retailers the opportunity to give consumers more choice by accepting multiple digital payment methods within a single user journey. With QR+, retailers can consolidate card-not-present, PayShap, loyalty schemes, and other payment types at POS. Additionally, there would be a lower need for additional system development, cashier training, and consumer awareness campaigns.
While the future is uncertain regarding when QR+ will be available and supported by banks and payment providers, Electrum believes there are two potential implementation methods that will best serve enterprise-grade retailers.
In this method, you request a QR code from your facilitating payment provider, which you can display at POS. The consumer then scans the QR code to initiate payment via their chosen banking app, third-party payment app, or loyalty app. They then select their preferred payment method (e.g., PayShap) and authorise the payment.
This approach leverages an established user journey, reducing friction at tills and the need for awareness campaigns or cashier training.
Once the standard is adopted, you gain access to all participating payment providers without further integrations.
If you already have a QR code-presented solution for EMVCo, you will not need a hardware upgrade in your POS or PIN-entry-device (PED) to display a QR+ QR code or barcode.
Depending on your customer’s bank, they may incur transaction fees they would not otherwise incur with card or cash, and a discount to absorb those costs could be considered to incentivise adoption.
In this model, your POS scans a customer-presented QR code or barcode to initiate payment via their chosen payment banking app, third-party payment app, or loyalty app.
This requires only scanning capabilities, removing the need for new hardware displays.
Working directly with a bank gives you the opportunity for you to be the first to market with PayShap at tills if you don’t have the hardware to implement merchant-presented QR+.
Lower transaction fees for your customers as it works as a merchant request-to-pay (RTP).
Since this is a new user journey, it may require awareness campaigns and cashier training to reduce friction at checkout.
To offer a comprehensive payment solution, you would need to integrate with multiple payment providers individually.
While there are options for implementing a payment initiation solution, retailers also need to consider how they will address the technical complexities of offering real-time payments in their tills.
Since a customer-presented QR code or barcode payment functions as a merchant RTP, your business will take the transaction fees instead of the customer. However, since PayShap fees are capped, they will be lower than card fees in larger baskets. With enough customer adoption of PayShap via QR+, it could improve your business's margins over time.
It is important to note that merchant-presented QR+ transactions would also incur a fee for your customer. This could affect adoption and result in an unsatisfactory purchasing experience. However, this could be countered by introducing a discount for QR+ payments for baskets of a specific size that could cover the transaction fee. That way, your business still benefits from reduced fees while your customers do not experience the friction of additional charges.
Since settlement and clearing happen simultaneously with PayShap, payments are irrevocable. To make the scheme work in a retail setting, you would need to address specific operational needs:
The transition to QR+ and PayShap is happening, and being prepared is crucial to developing a winning position. Electrum Software is dedicated to helping our clients navigate this complexity. We are closely monitoring the National Payments System (NPS) environment and the PASA-aligned standards to ensure our retailer partners remain future-fit.
Whichever direction you choose, Electrum will partner with you to create a solution that can handle reversals, refunds, and traceability.