While acknowledging the three organisations as “strong protectors” of the SA financial system, having fostered systemic stability, consumer rights and one of the best payments systems in the world, Pays said their media statement about instant EFTs “raises questions around whether the legacy banking players are more focused on their income streams or their customers”.
This week, in its “Consultation Paper on Open-Banking Activities”, the Reserve Bank concluded that information currently available indicates the screen-scraping practice poses no significant risk to financial stability at this stage, Pays said.
“By contrast, the SA Banking Risk Information Centre’s (Sabric) annual crime report for 2019 showed total gross fraud losses for SA issued cards increasing by 20.5% from 2018 (R890.3m), to 2019 (R1.07bn).
“Credit card fraud increased by 16.2% from 2018 (R186.8m) to 2019 (R217.2m).”
Alternative payment systems such as instant EFTs were becoming increasingly popular because of their ease of use, Pays said, with no need to fill in card details for every transaction.
“Plus they drive financial inclusion as they open up the online shopping universe to people who don’t have debit or credit cards.”
Pays said instant EFTs allowed consumers to spend money they have “as opposed to money they don’t have”.
GET IN TOUCH: Wendy Knowler specialises in consumer journalism. You can reach her via e-mail: email@example.com or on Twitter: @wendyknowler