Paystack yesterday announced the launch of the Paystack Transfers service for its South African customers. The service will allow businesses to send single and bulk money transfers to South African bank accounts from their dashboards and also via the Paystack API.
According to Paystack, the service is meant to save businesses time as, prior to the introduction of Paystack Transfers, they typically had to switch back and forth between collecting online payments via Paystack and using a separate platform to transfer money. With Paystack Transfers, businesses will be able to perform both transactions on the same platform.
To give businesses more control over how they can use the Paystack Transfers services, Paystack is also allowing them to build custom money transfer functionalities via the use of the Paystack Transfers API, giving businesses the opportunity to devise solutions that will best serve their payments needs.
According to Statista, the total transaction value of digital payments in South Africa is projected to reach $14.55 billion in 2022, with a further cumulative annual growth rate of 13.23% projected between 2022–2026. This means, by 2026, the total transaction value of digital payments in the country will be in the region of $23.92 billion.
By offering customers the convenience of accessing payments and transfer services on one platform, it would seem that Paystack is poised to claim a significant market share of the growing total transaction value of digital payments in the country.
Paystack launched in South Africa in May 2021 following a 6-month pilot which started a month after the company’s groundbreaking $200 million-plus acquisition by global payments company, Stripe.