GoTyme Bank is pushing South Africa’s banking industry to make instant transfers free for customers, arguing that real-time payments should be treated as an everyday banking service rather than a premium feature that attracts additional charges.
The digital-first lender, formerly known as TymeBank, has offered customers free instant payments of up to R5,000 ($309) through PayShap since introducing the service in 2023. PayShap, South Africa’s rapid payment platform, allows money to move between participating banks within seconds.
GoTyme’s position challenges the longstanding practice of charging customers for some interbank transfers. Brandspur Banking News Desk reports that the debate has become increasingly relevant as faster payment systems reshape how individuals and businesses expect to access and move their money.
The bank acknowledges that operating instant-payment infrastructure carries costs, but maintains that financial institutions can decide whether those expenses should be passed directly to customers. Differences in banks’ operating structures, technology and revenue models can also influence how payment services are priced.
GoTyme believes its digital operating model gives it greater flexibility to absorb some transaction costs while keeping real-time transfers free within its specified limit.
The issue can be particularly significant for small-value transactions. A transfer fee that appears modest when moving a large amount can become relatively expensive when a customer is paying for food, transport, electricity or sending a small amount to a family member.
Small businesses could also benefit from faster access to funds. Traders and service providers receiving instant payments can confirm transactions immediately and potentially use the money sooner to restock goods, pay workers or settle suppliers.
The wider economic argument centres on liquidity. A 2026 World Bank report cited in discussions around faster payments found that immediate availability of funds can help businesses put money back to work more quickly, rather than waiting through lengthy settlement periods.
International markets already provide examples of instant payments operating at significant scale. Brazil’s Pix and India’s Unified Payments Interface have helped make rapid digital transfers part of routine financial activity, strengthening the case for treating such systems as widely accessible payment infrastructure.
GoTyme has, however, cautioned against making unsupported claims about the impact of its own free-transfer policy. The lender has not yet quantified whether eliminating fees has produced a measurable reduction in cash usage or improved cash flow among small and medium-sized enterprises.
The push places renewed attention on how South African banks price digital transactions as payment technology improves. For customers, the central question is increasingly straightforward: if money can now reach another account within seconds, should accessing that speed still cost extra?
