South African fintech company Ozow has partnered with First National Bank (FNB) and Rand Merchant Bank (RMB) to launch a payment API designed to improve account-to-account payments by replacing traditional electronic fund transfer (EFT) processes with direct bank API integrations.
Globally, banks and fintechs are accelerating the shift towards API-driven financial services. According to Juniper Research, global open banking API calls are expected to increase from 137 billion in 2025 to more than 722 billion by 2029, highlighting the growing role of APIs in connecting banks, fintechs and digital services.
In a statement, Ozow said the payment API allows merchants on its platform to process payments directly through FNB and RMB’s banking infrastructure, with real-time authorisation and settlement. Customers selecting the FNB or RMB payment option at checkout enter their bank account number before receiving a secure payment request in the FNB or RMB banking app. The transaction is authenticated using existing security methods, such as a PIN or biometrics, after which payment is processed in real-time and merchants receive instant confirmation.
Rachel Cowan, interim CEO of Ozow, said the partnership builds on the company's focus on account-to-account payments.
"Account-to-account payments have always been central to Ozow's model, and partnerships like this are critical in advancing a more connected payments ecosystem. By working closely with FNB and RMB, we can deliver a solution that improves payment performance, enhances security and simplifies how merchants manage transactions at scale," said Cowan.
Ozow said the API-based approach removes the need for customers to share banking credentials or complete manual EFT processes. For merchants, it offers automated payment processing, real-time settlement, a single aggregated payout for simpler reconciliation and bank-grade authentication secured through OAuth. Merchants already using Ozow can enable the payment API for FNB and RMB without additional integration.
Bradley Shodries, head of payments and strategic solutions for commercial and corporate transactional banking at FNB and RMB, said the partnership supports the bank's API strategy.
"The launch of the payment API for FNB and RMB reflects our continued focus on enabling secure, API-driven payment solutions that simplify how customers and businesses transact. By partnering with Ozow, we are extending our banking infrastructure into the broader digital commerce ecosystem, allowing merchants to offer a more seamless and trusted account-to-account payment experience."
Ozow said the payment API gives merchants access to FNB and RMB's customer base of more than 10 million users and forms part of its broader payments ecosystem, which also includes services such as PayShap request, crypto payments and business lending.
The company said the launch reflects the growing use of direct bank APIs to modernise SA's digital payments landscape, replacing traditional EFT processes with real-time, bank-authenticated transactions.
In recent years, local banks and fintechs have increasingly turned to API-driven and real-time payments. Absa has previously partnered with Stitch and Ozow on its Absa Pay offering, while Capitec has integrated its payment service into Ozow's Pay by Bank offering. In November 2024, RMB expanded its use of APIs for real-time corporate payments.
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