Brief
South Africa to open payments system to non‑bank operators from mid‑2027
A Reserve Bank official said the reforms aim to boost competition, lower costs and expand digital financial services.
By Felo News Desk · Published
South Africa will allow non‑bank operators to access the national payments system directly from mid‑2027, a Reserve Bank official announced on Friday, ending the banks’ long‑standing dominance of payment processing.
What happened
Pradeep Maharaj, executive director of the Reserve Bank’s Payments Ecosystem Modernisation (PEM) programme, told a media briefing that the new rules will be published by November. Non‑bank participants – including telecommunications firms, fintech companies and retailers – are expected to be licensed and go live around March 2027, giving time for testing and system integration before a mid‑year launch.
What the reports add
The reform, set out in the National Payment System Bill released for comment in September, will initially permit non‑banks to carry out seven payment activities on their own, from issuing e‑money and acquiring merchants to payment initiation. The Reserve Bank hopes the change will spur competition, lower costs, broaden access to digital financial services and encourage innovation in a sector increasingly challenged by fintechs and mobile‑money providers such as MTN.
What was said
"Banks are doing a great job, and will continue to do so," Maharaj said, adding that the aim is simply to open access and let entrepreneurs serve underserved sections of the economy.
How it came about
The reform is a key pillar of the PEM programme, which also seeks to reduce reliance on cash, speed up adoption of affordable digital payments, modernise payment infrastructure, increase use of fast‑payment services such as PayShap and strengthen security and digital identity verification. PayShap currently handles about 60 million transactions a month, with a target of 500 million by 2029.
Key facts
- South Africa will open its national payments system to non‑bank operators from mid‑2027. (techcentral.co.za)
- The Reserve Bank will publish the new rules by November 2026. (techcentral.co.za)
- Non‑bank participants are expected to be licensed and go live around March 2027. (techcentral.co.za)
- The reform will initially allow seven payment activities to be performed by non‑banks. (techcentral.co.za)
- PayShap processes about 60 million transactions a month, aiming for 500 million by 2029. (techcentral.co.za)
Sources
- [1] techcentral.co.za — originally reported as “Banks to lose their grip on South Africa's payments system”
