Introducing Absa Pay: A new way to pay online with Ozow

May 28, 2024

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Introducing Absa Pay: A new way to pay online with Ozow

Absa and Ozow have partnered to offer a payment solution that leverages open banking technology to provide a fast, secure, and user-friendly payment option.

The collaboration between traditional banking powerhouses and fintech’s like Ozow are at the forefront of this change, driving the adoption of open banking APIs and creating cutting-edge payment solutions that offer a fast, secure, and user-friendly way to pay online, paving the way for a more inclusive and accessible financial future.

What is Absa Pay?

 

Absa Pay is a new payment method that allows merchants to accept funds directly from the customers' Absa account. 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 with their mobile device. This is advantageous for merchants as it reduces payment operations costs, lowers fraud incidence, and shortens processing times.

 

Benefits of Absa API with Ozow

When a customer chooses Absa Pay as their preferred payment method on the Ozow platform, they are seamlessly directed to a secure Absa portal. Here, they interact directly and securely with their bank to approve the transaction before being swiftly redirected back to the Ozow platform.

 

The beauty of this process is 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 Absa and their customer have finalised the payment.

 

The whole process is quick and easy, and the customer can complete the transaction in a matter of seconds.

 

Why is this an online payments revolution?

Absa Pay offers several advantages 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.
  • Increased uptime: The payment is monitored by both Absa and Ozow, ensuring that the service is always available and reliable.
  • Reduced costs: The payment does not incur any additional fees for the customer.
  • Lowered fraud: The payment is authenticated by the customer's bank, reducing the risk of fraud and chargebacks.

 

How can you start using Absa Pay?

 

If you are an Absa customer, you can start using Absa Pay as your preferred payment method on any online store that offers Ozow's Instant EFT service. You just need to select Absa as your bank and enter your account number. You will then be redirected to the Absa app, where you can approve the payment with your fingerprint, PIN or facial recognition. Once the payment is done, you will be redirected back to the merchant's website.

 

Absa API Payment Flow with Ozow

If you are an online merchant, you can start offering Absa Pay 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 Absa Pay 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?

Absa Pay 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 Absa Pay, Ozow solidifies its position as a pioneer in fostering open APIs with banks nationwide.

 

According to the World Pay Global PaymentsReport 2023, Pay-by-Bank is the second most preferred method for ecommerce purchases in South Africa, capturing 22% of the market share, just 2% behind debit card payments. Absa Pay 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 Absa are committed to enhancing the digital payments landscape through this strategic partnership, 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.

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Staff Writer

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