Ozow and FNB expand API payments to modernise digital transactions
Fintech payment provider Ozow has introduced a new API-based payment capability in partnership with First National Bank (FNB) and Rand Merchant Bank (RMB), allowing merchants to process bank payments directly through the banks' infrastructure. The development replaces conventional electronic funds transfer (EFT) payment journeys with an authorisation-based process designed to deliver faster settlements and improved transaction reliability.
The integration forms part of a broader industry trend towards modernising payment infrastructure through direct banking APIs, reducing reliance on legacy payment methods that often require manual intervention and delayed reconciliation.
For merchants already using Ozow's payment platform, the functionality is available without additional system integration, enabling businesses to offer customers a streamlined payment experience while simplifying operational processes.
Moving Beyond Traditional EFT The solution enables customers banking with FNB and RMB to complete payments by selecting their bank during checkout, entering their account number and authorising the transaction within their banking application using existing authentication methods such as biometrics or a PIN.
Once approved, payments are processed in real time, with immediate confirmation and settlement. Unlike traditional EFT transactions, customers do not need to share banking credentials or manually upload proof of payment, reducing both friction and fraud risk.
The API-driven approach also removes many of the delays associated with conventional bank transfers, providing merchants with quicker access to funds and greater certainty over completed transactions.
Operational Benefits for Businesses For businesses, the payment capability addresses several longstanding operational challenges associated with EFT payments.
Key advantages include higher payment completion rates through real-time customer authorisation, automated transaction processing that reduces manual reconciliation, faster settlement cycles that improve cash flow, and enhanced security through bank-authenticated payment authorisation.
Merchants also receive consolidated settlements, simplifying financial administration and reducing reconciliation complexity.
Strategic Partnership The collaboration highlights the increasing role of partnerships between financial institutions and fintech companies in accelerating payment innovation.
FNB remains one of Ozow's largest banking partners by transaction volume, making the integration strategically significant for both organisations as digital commerce continues to expand across South Africa.
According to Ozow, the partnership strengthens its objective of building a more connected and interoperable payments ecosystem while enabling merchants to access one of the country's largest digitally active banking customer bases.
FNB and RMB say the initiative aligns with their broader strategy of extending secure banking infrastructure into the digital commerce environment through API-enabled services.
Payments Industry Evolution South Africa's payments landscape is increasingly shifting towards API-enabled, bank-authenticated transactions as businesses seek alternatives to traditional EFT processes.
The combination of fintech payment orchestration with established banking infrastructure is expected to improve payment certainty, strengthen fraud controls and support greater scalability for merchants operating online.
The launch also builds on Ozow's wider payments ecosystem, which includes services such as PayShap Request, cryptocurrency payment capabilities and business lending solutions.
As financial institutions continue investing in open banking technologies and digital payment infrastructure, API-driven account-to-account payments are expected to play an increasingly important role in supporting the country's growing digital economy.