First National Bank (FNB) has become the first bank in Southern Africa to enable real-time cross-border payments within the Common Monetary Area (CMA), which includes South Africa, Namibia, Lesotho, and Eswatini. This milestone comes through its integration with BankservAfrica’s *Transactions Cleared on an Immediate Basis* (TCIB) platform, offering customers a seamless, automated process for cross-border payments.
Richard Porter, CEO of Foreign Exchange Solutions at FNB, emphasized that the transition to TCIB marks a significant step in improving FNB’s payment services. “Our clients will now experience an EFT-like process for cross-border payments, with key enhancements such as immediate payment clearance, low transaction costs, and high security,” he said
TCIB enables cross-border payments to be cleared in under 60 seconds, available 24/7, including weekends and public holidays. Porter noted that the platform’s always-on nature caters to clients who often make payments after traditional banking hours. Transaction fees range from R10 to R30, with a maximum transferable amount of R25,000.
Currently, the cross-border payment service is limited to intra-bank transactions, meaning payments can only be made between FNB account holders across different CMA countries. However, BankservAfrica CEO Stephen Linnell outlined that TCIB is designed for greater scalability. “The platform supports a range of payment types, including inter-bank, inter-wallet, wallet-to-bank, and wallet-to-wallet transfers. Once more banks join, interoperability will be possible,” he added.
BankservAfrica’s vision for TCIB is to provide multiple access points for financial institutions, including banks, fintechs, and mobile operators, through a single platform. The initiative has gained significant support from financial regulators across the region to ensure regulatory alignment and seamless cross-border payments.
Tim Masela, Head of the National Payments System at the Reserve Bank, highlighted the importance of a conducive regulatory environment in promoting competition and reducing the region’s reliance on costly cash transfers. “We aim to foster a cash-smart society with options that are affordable and efficient,” said Masela.
Linnell further noted that TCIB’s real-time payment capability and low costs are helping digital payments compete with the speed and flexibility of cash. However, he stressed the need for continued consumer education on the benefits of digitizing cash, such as access to lending and other financial services.
Looking ahead, BankservAfrica plans to expand TCIB’s reach to enable smoother interoperability between cross-border and intra-country transactions. This will allow consumers to have a consistent payment experience whether sending money locally through platforms like PayShap or regionally via TCIB.
FNB is also collaborating with BankservAfrica to include an account verification tool in its cross-border payment service to enhance security and ensure that payments are directed to the correct recipients. This feature will be available to customers at no additional cost. Additionally, FNB and BankservAfrica are working to extend the cross-border service beyond the CMA to other SADC countries, including Botswana.
Similar News:
SBI Launches ‘Innovation Hub’ in Partnership with APIX to Accelerate Digital Transformation
