How Ozow and Nedbank are transforming digital payments in South Africa
March 7, 2024
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Online payments are becoming more popular and convenient in South Africa, especially in the wake of the Covid-19 pandemic. But many consumers still face challenges such as slow processing, high fees, and security risks when paying online. That is why Ozow and Nedbank have collaborated to offer a revolutionary payment solution that is fast, simple, and secure: the Nedbank Direct EFT.
What is Nedbank Direct EFT?
Nedbank Direct EFT is a new payment method that allows customers to pay directly from their Nedbank account to the merchant, without the need for a credit or debit card. The API based solution 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 to the merchant, eliminating the need for a credit or debit card.
When a payment is initiated on the Ozow platform, customers choosing Nedbank Direct EFT as their preferred payment method are seamlessly directed to a secure Nedbank channel. Here, they 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 then enables Ozow to facilitate the transaction between the consumer and merchant, ensuring that Nedbank and their customer have finalised the payment.
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While the process may sound complicated the heavy lifting is done by Nedbank and Ozow meaning the consumer is able to complete the transaction in a matter of seconds.
Why is this a game-changer for online payments?
Nedbank Direct EFT provides several benefits for both consumers and merchants, such as:
- Faster transactions: The payment is completed in a matter of seconds, reducing the waiting time, and improving the customer experience.
- Streamlined payment flow: The customer does not need to enter any card details or OTPs, making the payment process smoother and simpler.
- Increased uptime: The payment is monitored by both Nedbank and Ozow, ensuring that the service is always available and reliable.
- Reduced costs: The payment does not incur any card fees or interchange fees, lowering the cost of payment operations for the merchant.
- Lowered fraud: The payment is authenticated by the customer's bank, reducing the risk of fraud and chargebacks.
How can you start using Nedbank Direct EFT?
If you are a Nedbank customer, you can start using Nedbank Direct EFT as your preferred payment method on any online store that offers Ozow's Pay-by-Bank service. You just need to select Nedbank Direct EFT as your bank and enter your I.D number. You will then be redirected to the Nedbank App to authenticate your profile and proceed with the payment. Once the payment is done, you will be redirected back to the merchant's website.
If you are an online merchant, you can start offering Nedbank Direct EFT as a payment option to your customers by integrating with Ozow's Instant EFT service. You do not need to do any additional development or sign any new contracts. You just need to contact Ozow and request to enable Nedbank Direct EFT on your account. You will then be able to access the API through Ozow's dashboard and API documentation.
What does this mean for the future of digital payments?
Nedbank Direct EFT is a milestone in the evolution of digital payments in South Africa. It reflects the growing trend of open banking, which allows third-party developers to create apps and services around financial institutions, offering safer, more user-friendly, and accessible payment options. With the integration of the Nedbank Direct EFT API, Ozow solidifies its position as a pioneer in fostering open APIs with banks nationwide.
According to the World Pay Global Payments Report 2023, Pay-by-Bank is the second most preferred method for e-commerce purchases in South Africa, capturing 22% of the market share, just 2% behind debit card payments. The Nedbank Direct EFT solution is set to boost this preference even further, as more customers and merchants discover the benefits of paying directly from their bank account.
Ozow and Nedbank are committed to enhancing the digital payments landscape through this bank supported solution which is designed to simplify online payments. This alliance is facilitated through South Africa's leading proprietary open banking-payments interface, Ozow, reflecting a significant shift in how South Africans interact with their banks and conduct transactions.
Learn more about Nedbank Direct EFT here→
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