Digital Public Infrastructure (DPI) is quietly transforming the global economy. From enabling seamless financial inclusion to powering digital identity and data flows, DPI is the invisible architecture behind modern life. In countries like India, Brazil, and Estonia, DPI systems have catalyzed innovation and opened up access to public and private services for millions. Now, South Africa is taking a bold step forward with PayShap, its real-time payment system.
But what does PayShap really mean for South Africa’s digital future—and how does it compare globally?
What is DPI and Why Does it Matter?
DPI refers to the foundational digital systems that facilitate digital identity, real-time payments, and secure data exchange. These systems are not just infrastructure—they are enablers of inclusive economic growth.
Think of DPI as the digital equivalent of roads and electricity. Without them, no digital economy can function at scale. And just like with physical infrastructure, how DPI is built and governed determines whether it benefits everyone—or just a few.
Spotlight on South Africa: PayShap
PayShap was launched in 2023 to provide South Africans with an instant, low-cost, and mobile-friendly way to transfer money. It was designed especially with the unbanked and underbanked in mind. You don’t need a bank account number to use it—a mobile phone number will do.
Developed by the South African Reserve Bank (SARB) in partnership with BankservAfrica, PayShap is a real-time payment (RTP) system that aligns with global DPI trends: open, inclusive, and fast.
But PayShap’s model is unique. While it’s state-enabled, it’s not fully state-owned like Brazil’s PIX or India’s UPI. Instead, it’s governed through a hybrid model, combining public oversight with private-sector operation. This offers benefits in speed and agility—but also comes with risks around access, transparency, and market dominance.
How PayShap Stacks Up Globally
Globally, countries have taken very different paths to building DPI:
- India’s UPI is a quasi-public system run by the National Payments Corporation of India (NPCI), achieving massive scale but raising questions about regulatory neutrality and favoritism toward dominant platforms.
- Brazil’s PIX is fully operated by the Central Bank, enabling wide participation but facing sustainability challenges due to fee-free design.
- The UK’s Faster Payments system is managed by a nonprofit under regulatory oversight, balancing open access with commercial participation.
- Estonia’s X-Road is a globally admired model of decentralized, interoperable digital identity and data exchange, enabling seamless collaboration between public and private sectors.
- Nigeria, by contrast, has fragmented identity systems (NIN and BVN), leading to inefficiencies and limited innovation.
Compared to these systems, PayShap sits in the middle. It benefits from SARB’s credibility and vision, but the private governance model may limit how open and competitive the ecosystem can be unless deliberate efforts are made to include fintechs and small players.
Why Ownership and Governance Matter
Who builds and controls DPI matters deeply. State-run systems can prioritize public interest but risk becoming bureaucratic monopolies. Private-run systems may innovate faster but can prioritize profit over access.
The best models find a balance—they combine the scale and authority of public institutions with the innovation and efficiency of private actors. Crucially, they must be designed with open standards, transparent governance, and a clear commitment to inclusion.
PayShap is a promising start. But South Africa must go further to ensure:
- Fintechs and innovators can plug in easily
- Costs for integration are reduced
- Rules of participation are transparent and fair
- Uptake is measured and reported publicly
- The most vulnerable communities are not left behind
The Road Ahead for DPI in South Africa
South Africa has laid the tracks for digital inclusion with PayShap. Now it must build the vehicles, stations, and access points.
This means:
- Creating regulatory sandboxes for digital ID and fintech innovation
- Connecting PayShap to informal economies and community networks
- Using digital ID (like Home Affairs’ e-ID system) as a true enabler, not a barrier
- Partnering with civil society to raise digital literacy
Ultimately, the success of DPI depends not just on technical design but on trust, openness, and leadership.
If South Africa can get this right, PayShap won’t just be a payment tool—it could be the start of a digitally empowered society.
Join the Conversation
What do you think about South Africa’s approach to DPI? Can PayShap be a game-changer for the informal economy? Tweet me @edzaizv
