Governor of South African Reserve Bank (SARB) Lesetja Kganyago said Wednesday the institution is exploring new ways to improve payment systems, including a newly launched modernization initiative.

JOHANNESBURG, Oct. 3 (Xinhua) -- Governor of South African Reserve Bank (SARB) Lesetja Kganyago said Wednesday the institution is exploring new ways to improve payment systems, including a newly launched modernization initiative.

While addressing the 2024 SARB Payments Conference, Kganyago said the central bank recently embarked on the Payments Ecosystem Modernization Program.

"This is the largest and most ambitious initiative by the SARB, in the payments space, since the launch of the South African Multiple Option Settlement System, or SAMOS, more than 30 years ago," the governor said. "At the heart of the program is the development of a public payments utility that provides digital payments infrastructure. Any such program must have security measures and fraud prevention at its core."

Kganyago noted that banknotes and coins contracted by 0.8 percent in 2023, the largest fall since 1960, which shows that people are slowly embracing the "changing payments landscape," with the availability of better payment alternatives.

"As our Vision 2025 strategy document set out, structural changes in payment systems are underway, and it is therefore vital for South Africa's competitiveness that we stay ahead of these trends. This is also an area where we can make real contributions to financial inclusion and growth," he said.

According to Kganyago, the new paradigm will make payments in South Africa "safer, faster, cheaper, and more inclusive."

The 2024 Payments Conference runs from Wednesday to Thursday, bringing together global experts in the payments, technology, and innovation industry to explore the opportunities and challenges of the future of payments in South Africa.  ■