By Sizwe Dlamini
The Central Bank of Eswatini (CBE) has launched the Eswatini Payment Switch Fast Payments module, enabling payment processing within 10 seconds, rather than hours or days.
CBE Governor, Dr. Phil Mnisi, announced this at the Bank’s complex in Ezulwini yesterday.
A financial payment switch is a system that connects various banks and financial institutions, enabling the secure and seamless transfer of money and data between them. It acts as an intermediary, facilitating payments, card transactions, and fund transfers across multiple platforms.
Speaking at the launch, Mnisi stated that the launch of the payment switch marked the completion of the first phase of a three-phase project, which is expected to be fully delivered by the end of the payment switch project in January 2025.
“The CBE appreciates all the efforts of industry partners who have committed to the successful delivery of the Eswatini Payment Switch project. This collaboration has been demonstrated through the resources invested and the numerous engagements that have been facilitated throughout the pilot phase of the project.
Fast payments will revolutionize payment processing in the Kingdom by introducing real-time payments across all payment service providers, including both banks and non-banks. This development is significant for Eswatini’s digital financial services sector and will contribute to infrastructure development and financial inclusion within the economy,” he said.
The payment service providers on the Eswatini Payment Switch are referred to as participants, a term that includes both banks and non-banks. For context, the CBE and the Eswatini payments industry embarked on a project to implement a domestic payment switch, enhancing the local payment architecture to meet stakeholder needs and ensure its compatibility with modern global payment systems.
This national initiative aligns with the broader payment digitization goals outlined in the National Payment Systems Strategy for 2022 to 2025.
The Fast Payments module will achieve the following: Facilitate system interconnectivity and interoperability among banks, non-banks, and financial service providers, enable payment processing within seconds, instead of hours or days, reduce the need for cash payments promote a cash-light economy, and provide 24/7 availability of payment services, including weekends and holidays.
“It is important to mention that fast payments are gaining traction globally, as many markets aim to bring greater convenience to consumers by enabling real-time transactions for the payment of goods and services,” Mnisi said.
Mnisi explained that Eswatini currently has eight participants who have been actively working toward integration into the switch. Given the varying existing systems, infrastructure arrangements, and resource distribution, the integration has not been at the same level across the industry.
This means some participants may not be ready at the initial launch but will onboard to fast payments within a few months of the launch.
Additionally, fast payments are limited to a maximum of E50 000 for a single transaction for bank accounts and E10 000 per transaction for digital wallets. The daily limit for senders is a maximum of E50 000. Eswatini was the last country within the Southern African Development Community (SADC) region to implement the local switch.