MoData at the confluence of cash and digital: Enabling SA’s payments evolution

MoData believes in a future where digital and cash co-exist.

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South Africa’s payments ecosystem is undergoing a profound transformation. At the heart of this shift is the South African Reserve Bank (SARB) and its Payments Ecosystem Modernisation (PEM) Programme – a strategic initiative aimed at modernising infrastructure, promoting financial inclusion and reducing systemic risk.

“This modernisation is not just about updating systems or technology. It’s about building a payments infrastructure that truly serves the people of South Africa,” says Lesetja Kganyago, Governor of the South African Reserve Bank (SARB).

While digital payments are central to this journey, the SARB’s July update makes one thing clear: cash remains a vital part of the future. This is not a move towards a cashless society, but towards “smart cash” – a hybrid model that digitises payments while preserving cash access for those who need it most.

Barry Röhrs, MoData associate and long-term advisor to cash industry players, says: "The term smart cash emerged around the time of the launch of the latest banknote series and generated incredible debate as to what it means. We look forward to hearing from the SARB about their perspective on this in the next few months.”

“Smart cash isn’t about replacing cash – it’s about making it smarter, safer and more connected to the digital economy,” says Darren Turnbull, CEO of MoData.

At this pivotal moment, MoData stands at the confluence of cash and digital transformation. With deep expertise in both domains, the company is uniquely positioned to support stakeholders across the payments ecosystem as they navigate the complexities of modernisation. For years, MoData has supported banks and corporates with specialised technology that simplifies digital transactions and combats fraud. The company has a long-standing track record of applying artificial intelligence to optimise cash operations – using machine learning to forecast cash demand at ATMs, retailers and branches, while automating complex planning tasks such as demand-supply balancing, route optimisation and SLA/KPI analytics. MoData’s systems can integrate with the SARB and PayInc (formerly BankservAfrica) to enable interoperability and AI-driven workflow automation, helping clients maintain optimal cash levels while reducing cost and risk.

The company continues to leverage the combined leadership and expertise of Turnbull, Russell Stewart and, in association with Röhrs, aim to solve for pain points in high-volume cash environments, reduce inefficiencies and offer digital alternatives where practical.

South Africa’s payment system has long been resilient and innovative – from SASWITCH’s interbank cash withdrawals to the collaborative infrastructure of PayInc and SBV Services. Despite this strong foundation, much of the underlying technology remains outdated. In describing the PEM Programme objectives for product changes, including the real-time gross settlement (RTGS) system, for example, the SARB’s Head of the National Payment System Department (NPSD), Arif Ismail, describes the challenge of this system being “functionally rich but technically needs an upgrade”, and updating this is a crucial first step in modernising the payments system.

Recent fragmentation – banks opting out, new players going solo – has left critical infrastructure vulnerable. The SARB’s PEM Programme is a call to reimagine this landscape, not just through digital innovation, but by modernising cash infrastructure to deepen inclusion.

MoData welcomes the SARB’s intention to integrate fintech-enabled cash-to-digital conversion mechanisms and wallet-based transaction data into the broader payments ecosystem modernisation strategy. Karl Westvig, CEO at TymeBank, highlights one of the key challenges in South Africa’s payments transformation: “Cash remains a dominant form of transaction.” He explains that when people and businesses rely only on cash, there’s no data trail. This makes it harder to measure economic activity, limits access to credit and increases physical risks. “For small traders, it means operating without a data trail. For families, it means no credit history, no safety net, no leverage,” says Westvig. Without a digital footprint, people can’t borrow money or build financial stability. “Digital systems don’t solve everything,” he adds, “but they offer the possibility of something better – faster payments, traceable income and safer storage of value.”

Capitec’s previous CEO, Gerrie Fourie, suggests that Stats SA’s unemployment rate figure of 32.9% (Q1 2025) is inflated “because it excludes self-employed individuals in townships”, (Business Day, June 10, 2025)many of whom transact in cash and therefore there is no visible record of these transactions. Rohrs adds that this means SA probably substantially underestimates cash usage and cash’s contribution to the economy.

MoData understands these realities. Its solutions help bridge the gap – digitising where possible, while supporting secure, efficient cash operations that serve the underserved.

MoData enthusiastically participated in the Payment Association of SA’s Payments Industry Body plenary, and similarly now hopes to bring MoData’s technology and experience to the fore in the next phase under the PEM, as it is particularly well aligned to enable the broader goals of payments ecosystem modernisation bridging cash and digital.

The PEM Programme’s goals are ambitious: elevate the National Payment System (NPS) to a higher equilibrium, transform middle-mile infrastructure and reduce cash dependency. The SARB is investing heavily, creating a National Payment Utility (NPU) to operate as a public good. It’s also opening the ecosystem to non-bank players, fostering competition and innovation.

“Through the PEM Programme, we are working towards a payment system that achieves a new balance – one where competition thrives, a national payments utility is developed and cash is no longer the only option for many,” says Arif Ismail, Strategic Product Director, PEM Programme.

MoData has long advocated for a co-ordinated approach to cash transformation. The company supports the vision that includes the establishment of a centralised entity to manage the migration from traditional cash to smart cash, with the South African Reserve Bank (SARB) playing a pivotal role in regulating the pace of change. As digital adoption increases, the SARB could “throttle” or “open up” cash availability inversely – ensuring that cash remains accessible where needed, while encouraging digital alternatives where viable. This model supports financial inclusion while reducing systemic risk and operational inefficiencies. MoData’s solutions such as AI-driven forecasting, logistics optimisation and digital onboarding tools are designed to help banks, retailers and fintechs manage both ends of the payments spectrum – from legacy cash environments to modern, interoperable platforms.

MoData is ready – its technology supports both cash and digital. The company offers real-time fraud prevention tools, digital onboarding solutions and operational systems that reduce cost and risk. MoData has helped clients digitise payments, streamline cash handling and improve visibility across channels. Its work aligns with the PEM’s core principles: collaboration, inclusion and resilience.

MoData is not standing still. The company is actively investing in its payments capability through:

• Expertise expansion: With over 40 years of experience, MoData continues to grow its team of payments specialists bridging legacy systems with future-ready solutions.
• Research and development: MoData is expanding its R&D footprint to support innovation in smart cash, fraud detection, digital onboarding and cloud-native payment platforms.

The PEM Programme will impact every sector:

• Financial services: Lower transaction costs, better fraud management and more competition.
• Fintech: New opportunities for e-money issuance and payment acceptance.
• Retail and e-commerce: Real-time payments and QR codes enhance customer experience.
• Telecoms: Demand for mobile-based payments and USSD solutions.
• Government: Efficient grant disbursements and improved transparency.
• Technology providers: Growth in digital identity, AI and payment infrastructure.

MoData is already contributing to this future. Its systems support secure digital transactions, enable interoperability and reduce friction in cash-heavy environments. MoData isn’t just building tools – it’s helping shape the ecosystem.

SARB’s PEM update is more than a policy shift – it’s a call to action. The PEM Programme is structured for rapid change, with specialised teams designing initial products. MoData is ready to collaborate, bringing its experience and insight to the table.

MoData believes in a future where digital and cash co-exist – where payments are inclusive, efficient and secure. South Africa’s payments ecosystem modernisation journey is starting. MoData is here to help navigate it.