Nie Cele
In a drive to educate its customers about its quest to digitise cash payments, One of Mzansi’s big, reliable leading bank, FNB is urging its customers and businesses to always consider utilising digital platforms when making or accepting payments.
This was revealed during the bank’s payment media update at their Sandton Headquarters.
At the same event, the bank’s panel of experts unpacked the performance of existing solutions and launched new solutions aimed at making payments more convenient, secure and cost effective for customers and businesses.
One of the panellist, Wandile Mnguni, Head of Transactional Banking Products at FNB told the packed audience cash transactions remained relevant but was fast declining.
Daniel Kaan, FNB CEO for Core Banking and Merchant Services, unpacked the banks’s payment ecosystem and the evolutions of payments.
Head of Transactional Banking Solutions, Lauren Deva highlighted the usage of cash can sometimes have negative repercussions.
“We encourage our clients to use cards incentives for business and customers. Cash is expensive and is sometimes a security risk. We always want to see if we can meet our customers’ demands. We encourage them to approach us.”
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FNB SEES CASH DECREASE AND DIGITAL PAYMENTS GROW BY 360% IN 3 YEARS
- Digital payment solutions increased by 360% over the past three years from R16.8bn to R77bn
- Cash to digital ratio improves to 87%
- Cash to card ratio improves from 64% to 73%
- R2 billion payments via PayShap
Over the past three years, FNB has seen the use of cash for day-to day transactions declining by over 87% on average. Moreover, as FNB’s customer base grows to 8.6 million, the Bank’s innovative approach continues to play a significant role in shaping South Africa’s rapidly evolving digital payments landscape.
FNB’s investment in digitising cash payments is paying off as the Bank leverages its vast ecosystem of payments solutions that are spread across its digital platforms, for every use case, for making and receiving payments.
Part of the significant decrease in cash usage can also be attributed to the Bank’s commitment to building a dynamic digital payments acceptance environment, to help SA shift towards a cashless society. For that reason, the Bank continues to bolster its payments acceptance solutions, to remove most of the payments and cashflow barriers that are common to many businesses, making it easy for them to pay and get paid, operate efficiently, and enhance their success – namely:
- Rent your Speedpoint –businesses are now able to take up a device on platform with a rental model that offers them a personalised service, free tally rolls and maintenance in 20 minutes.
- Buy your speedpoint – eBucks or bank card can be used to purchase a Speedpoint device via the eBucks shop on online & app to start receiving payments for businesses.
- Speedee App & Speedee QR –businesses can now turn their mobile phone or point of sale solutions into a convenient payment solution.
- FNB Cash Advance –businesses now have access to funding at the back of their merchant services turnover.
- GetPaid –businesses can now use FNB’s inventory management app on their Speedpoint to track their inventory and get paid in one transaction.
- e-Tolls solutions – eTolls across the N3 & N4 have now been equipped with FNB speed point devices to enable consumers to make contactless payments at Toll Gates seamlessly.
“Our broader strategy includes entrenching our leadership position as a provider of accessible and helpful digital transactional capabilities. As a result, our distinct platform strategy and digital value propositions are out-competing cash, with a significant number of transactions across our segments now digital – largely driven by contactless payments. For example, in the Personal Segment, which is predominantly cash-reliant, almost 90% of transactions are now digital,” says Daniel Kaan, FNB CEO for Core Banking and Merchant Services.
Kaan adds that industry efforts to deepen digital financial inclusion of both consumers and small businesses by making digital payments more convenient and reducing the reliance on cash in the economy, should be commended. “Payshap has proved to be an important payment mechanism to accelerate successes in cash to digital migration and financial inclusion on our platform.
FNB’s world-class digital presence continues to enable many successes in payments:
- R74 billion payments using a Card Digital Wallet
- R43 billion in Virtual Card spend since launch
- R418 million in Bill Payments since launching
- Card Instant Payments up 83% YoY & R1 billion in payments
“We remain committed to being a world-class provider of innovative and seamless payment solutions for our customers,” concluded Kaan.
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