South African fintech company Ozow has partnered with First National Bank (FNB), a retail bank, and Rand Merchant Bank (RMB), a corporate and investment banking business, to launch a payment API that allows merchants to process account-to-account transactions through FNB and RMB banking infrastructure.
The API is integrated into Ozow’s existing platform and is designed to replace traditional electronic funds transfer processes with direct bank API connections. Merchants can use the payment option without an additional integration when it is already enabled through their existing Ozow implementation.
The payment flow starts when a customer selects the FNB or RMB option at checkout and enters their bank account number. Ozow sends the payment request to the relevant bank, where the customer authenticates the transaction through the FNB or RMB app using methods such as a PIN or biometrics. Once the payment is authorised, the transaction is processed in real time and the payment outcome is returned to the merchant.
The model also changes how merchants handle reconciliation. Payments are settled through a single aggregated payout, while the direct bank integrations remove the need for credential sharing and manual EFT steps.
Rachel Cowan, interim CEO of Ozow, says the partnership builds on the company’s role in enabling more integrated, interoperable payment solutions.
“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,” says Cowan.
The API uses direct bank integrations rather than the manual processes or screen scraping associated with some Pay by Bank methods. Customer authentication takes place within the FNB or RMB app, while the payment request and confirmation are handled through the connected systems.
For merchants, the integration provides real-time customer authorisation, automated payment processing and settlement, as well as OAuth-secured access and bank authentication. The payment API also gives merchants access to more than 10 million FNB and RMB customers.
For FNB and RMB, the integration extends their banking infrastructure into digital commerce through an API-based payment model. Bradley Shodries, Head of Payments and Strategic Solutions for Commercial and Corporate Transactional Banking at FNB and RMB, says the launch reflects the bank’s broader strategy to enable secure, API-driven payments through collaboration.
“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.”
The launch adds to Ozow’s existing payment integrations, which include PayShap Request, Crypto Payments and Business Lending. The company positions the FNB and RMB API as part of the shift toward direct, bank-authenticated payment flows in South Africa.
