Standard Bank in South Africa introduced a new mobile payments option for merchants called SnapPay — and the bank is still charging merchants a hefty processing fee.

There is a hope that direct connections between banks and retailers would help merchants avoid card fees. That is not the case here.

Standard’s service allows users with smartphones to scan QR codes on a mobile point-of-sale device. This scan brings the shop up on the user’s phone. The user then enters the payment amount and it is funded from his bank account. A four-digit PIN is required to complete the transaction.

Standard is charging merchants a 3% fee per transaction. (See SnapPay in action below.)

Paul McMeekin, manager of business intelligence & market research at ACI Worldwide, said that in the U.S., Top 10 banks are working with Top 10 retailers to form unmediated connections between customers’ accounts and the merchants’ accounts. This could technically facilitate real-time payments, but with the funds moving via ACH, settlement actually takes two to three days. It also avoids card fees. But one way or another, it seems merchants will pay.