Capitec has joined forces with Ozow and Stitch to introduce a revolutionary payment solution in South Africa. The partnership is meant to create a new, more innovative payment system that will help more people in the country get access to money. By connecting Ozow's digital payment platform with Capitec Pay through South Africa's first proprietary open banking-payments API, underserved consumers and businesses will have an easier and more accessible way to pay.
Open banking lets third-party developers build apps and services that work with financial institutions. This gives people safer and easier ways to pay and makes banking easier for more people. With API integration for Capitec Pay, Ozow is positioning itself as a leader in the push for open APIs with banks in South Africa.
Nearly one in four South Africans don't have a bank account right now, which shows how urgently we need more inclusive financial services. The integration of Capitec Pay into Ozow's Pay by Bank offering presents a more secure, accessible payment option for customers and demonstrates a commitment to democratising Africa’s emerging neobank landscape.
Capitec Pay is a payment system that lets clients identify themselves with their mobile phone number or ID number rather than the username and password combination that has been the primary method for users to access their bank accounts. The final payment is approved in a pop-up confirmation message in the app, providing added security to customers. Consumers can also revoke consent and opt out at will at any time.
Capitec Pay is easy to use and quick. Its benefits for merchants include guaranteed settlements, automated reconciliation, and better uptime thanks to monitoring on the bank side. This payment system will be integrated into Ozow’s Pay by Bank offering, which is a simple, secure, and easy payment solution that lets customers pay directly from their bank account to the merchant without the need to use a bank or credit card.
According to Mastercard’s latest annual New Payment Index, 97% of South African consumers plan to use a digital payment method in the next year. By working with Ozow and Stitch, Capitec Pay offers a new way for South Africans to pay that meets their needs and gives them the security and ease of use they want.
The partnership between Ozow and Capitec could change the way people in South Africa do business and deal with their money. Stitch, a payments infrastructure player in South Africa, has also integrated Capitec Pay. The service is available to Stitch clients, allowing them to offer the same friction-free experience their customers receive from existing Stitch methods with little to no additional development work required. Customers can choose to pay using Capitec Pay, alongside other available Stitch payment methods, including one-click instant EFT payments, direct deposits, and most recently, cash via CashPay.
Jerome Passmore, head of Capitec Pay, believes that the Ozow-Capitec partnership is committed to democratising Africa's emerging neobank landscape and presents a more secure, accessible payment option for customers.
The partnership between Capitec, Ozow, and Stitch is a big step towards giving more people in South Africa access to money. Capitec Pay is easy to use and quick, while Ozow's Pay by Bank option is safer and easier to use. By working with Ozow and Stitch, Capitec Pay offers a new way for South Africans to pay that meets their needs and gives them the security and ease of use they want. The future of payments in South Africa looks promising, and it is exciting to see this sort of innovation coming to life in the country.
Customers will be able to make payments more easily and quickly when Ozow's platform is linked to Capitec Pay through South Africa's first proprietary open banking-payments API. Stitch has also integrated Capitec Pay, allowing them to offer the same friction-free experience their customers receive from existing Stitch services. Zapper, another South African mobile payments company, has also partnered with Stitch to allow Zapper users to make instant electronic funds transfer (ETF) payments using the latter’s LinkPay product. LinkPay was released in April 2022. It is the first product in Africa to offer secure, instant electronic funds transfer (EFT) payments from a linked financial account with just one click. Capitec has also started its Open Banking initiative, Capitec Pay.
Through this initiative, customers can link an account to use as their preferred payment method in the Zapper app by selecting "Link bank account" from the "Payment methods" settings. This allows customers to make digital payments without having to share their banking details with online merchants.
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