Payments Association of South Africa
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PARTICIPATE IN THE CREATION OF A NEW PAYMENTS INDUSTRY BODY


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The SARB pronounced its support for a new Payments Industry Body (PIB) to be established. 
The new PIB will facilitate stakeholder collaboration in ensuring the effectiveness of the National Payment System.

PIB image 1On 22 June, the SARB convened a special meeting of the Payments Council to engage the payments industry on a proposal to define and establish a representative PIB. The SARB is of the view that a PIB will assist in fostering collaboration and entrenching the interoperability of the National Payment System (NPS) 

The main differences between the PIB and the current Payments Association of South Africa (PASA) is the inclusiveness of this structure and specifically the inclusion of a broader group of payment system participants, payment service providers and/or their associations (the Community).

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The SARB indicated that such a PIB needs to be inclusive of all payment system participants, payment service providers and/or their associations (the Community). The broad objectives of a PIB were outlined as:

-       Ensuring that the interests of the NPS are served;

-       Contributing to achievement of policy objectives;

-       Achieving and maintaining interoperability; and

-       Supporting the SARB and other regulators in ensuring a safe and efficient NPS.

It is envisaged that an inclusive Community of payment system stakeholders will participate in and contribute to the design and establishment of the PIB. The Community will include appropriate representation from users of payment services.

The SARB has requested the payment system industry to co-design and co-create a PIB. This collective of stakeholders should also recommend whether its scope should be entirely domestic or could stretch regionally, or whether its influence should extend to closed-loop payment systems.

The SARB therefore has chosen to opine only on the broader objectives and principles underpinning the PIB but has left it to the Community to finalise the detailed proposals.

The principles which should guide the establishment of the PIB are:

-       Pursuit of interoperability;

-       Entrench collaboration and cooperation;

-       Be representative and inclusive of relevant industry structures; and

-       Act in collective pursuit of broader NPS goals.

Some suggestions have been made of possible PIB functions, all of which relate to managing the “interoperable middle mile” between various payment system participants, payment service providers and users.

While inclusive participation in the design and implementation of the PIB is congruent with the PIB’s future role and membership, PASA has been tasked to facilitate the engagement process by all stakeholders that would lead to the establishment of the PIB.  Rapid outcomes and quick turnaround times are desired to conclude this initiative in a reasonably short but realistic timeline.

PIB image 3As the PIB is intended to be the space where the payments Community need to find common ground for collaboration, communication and participation in the payment system, it is therefore ideal that the Community design the new PIB.  The SARB proposed that PASA, as the currently recognised Payment System Management Body (PSMB), facilitate the process for establishing the PIB, while it will need to be consulted through this process and is keen on the realisation of the desired outcome. It was proposed that this process be run in two sprints: the first to agree the participants in the process, the ways of working and the design principles while the second phase will design the actual entity itself (funding model, governance model, membership model etc). Once the design has been agreed and shared with the SARB, there will be a last leg in which the new organisation will be implemented.

Payment Service Providers and Payment System Participants are hereby invited to indicate their interest to participate in the process.

PIB image 4PASA already provides a platform for information flow and consultation to non-banks though a Card Stakeholder Forum and an Electronic Payment Stakeholder Forum.  Additionally, PASA has collaborated extensively with the Payments System Stakeholder Forum (PSSF), an association that represents users and system operators of all Early Debit Order systems. We consider participants in these forums to be natural participants in the process of establishing the PIB and do not require these parties to register again in order to participate in the process.  We therefore wish to invite all parties that fall into any of the categories below, but who are not already registered or involved in any way with PASA, to indicate their interest to participate in the first kick-off session for this process:

  • Associations of industry sectors that use payments systems extensively for their business and who are not already represented.
  • Payment Service Providers or their associations who are not already registered with PASA as Third Party Payment Providers or System Operators.
  • Any other Fintech or Payment Service Providers, including MNO’s and payment service providers that provide closed loop payments services.

If you can identify yourself as any of these entities or structures, and if you are not already involved in an existing PASA structure, please complete your details below to ensure that your interest is registered and that appropriate actions to involve you will be taken.

In the meantime, and until announced by the SARB, PASA will continue to fulfil its mandate and functions.  

The PASA mandate remains intact while this PIB establishment process is underway. PASA is therefore working on the planning and support for the facilitation exercise to establish the PIB while ensuring that key responsibilities and commitments to members and stakeholders as a PSMB are delivered as usual and on time.



 
Once you've entered your details in the form below and pressed submit, your details will be recorded on our database.

Payments Industry Body Participation Form

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