Digital payments platform Ozow, in partnership with Absa, is launching Absa Pay, a new payment solution that is set to transform digital transactions and financial inclusion in South Africa.
The partnership between Absa and Ozow is designed to simplify online payments, further boosting the rising adoption of online payments within the country.
By integrating Ozow's platform with Absa Pay, both companies aim to improve the digital payments ecosystem.
Coenie Louw, head of Technical Operations, Ozow said: "We are thrilled to partner with Absa to launch the Absa Pay, a revolutionary payment solution that harnesses the potential of open banking to offer our merchants and their consumers a fast, secure and convenient way to pay online.“
“This is a milestone in our mission to provide innovative and inclusive financial solutions that meet the changing needs of our merchants. We look forward to collaborating with Absa to promote the adoption of the Absa Pay and improve the digital payments landscape in South Africa."
The partnership between Absa and Ozow is facilitated through South Africa's leading proprietary open banking-payments interface, reflecting a major change in how South Africans interact with their banks and conduct transactions.
Open banking allows third-party developers to create apps and services around financial institutions - plus it offers safer and more user-friendly payment options.
With the integration of Absa Pay, Ozow solidifies its position as a pioneer in fostering open Application Programming Interfaces (APIs) with banks nationwide.
Absa Pay guarantees settlements (subject to Absa's processes), facilitates automated reconciliation, and ensures increased uptime through bank-side monitoring.
The API is integrated into Ozow's Instant EFT service, which is a secure and easy-to-use payment solution that lets customers pay directly from their bank.
This is beneficial for merchants, as it reduces payment operations costs, lowers fraud incidents, and shortens processing times.
When a payment is initiated on the Ozow platform, customers choosing Absa Pay as their preferred payment option and are seamlessly directed to a secure Absa portal.
There they will interact directly and securely with their bank to complete the transaction before being swiftly redirected back to the Ozow platform.
What sets this process apart is the fact that all client banking credentials are handled directly with their bank in a secure, familiar environment.
Open Banking will then allow Ozow to facilitate the transaction between the consumer and merchant, ensuring that Absa and their customer have finalised the payment.
While the process may sound complicated, the heavy lifting is done by Absa and Ozow, meaning the consumer is able to complete the transaction in a matter of seconds.
Subash Sharma, Chief Digital Officer at Everyday Banking, Absa said: “This is a significant development in the right direction for the bank, as we continue to prioritise our customers’ financial wellbeing through our quality products, services, and solutions.”
As a digitally-powered bank and primary banking partner to its customers, it’s important to offer the best value for money by also enhancing capabilities to transact securely online, according to Sharma.
“We are incredibly proud to collaborate with leading payment fintech companies, using Open Banking technology to create a seamless and safe online banking experience.
IOL Business