South Africa is preparing to overhaul its national payments infrastructure by allowing fintech companies, telecommunications operators and major retailers to participate directly in the country’s payment system. The reform, announced by the South African Reserve Bank, could significantly increase competition, reduce transaction costs and expand access to digital financial services in one of Africa’s largest economies.
Ending traditional banking dominance The South African Reserve Bank (SARB) has confirmed plans to allow qualified non-bank financial service providers to access the country’s core payments infrastructure from 2027.
Until now, direct participation has largely been restricted to established banking institutions, forcing many fintech companies to rely on commercial partnerships with banks.
The new framework is intended to remove unnecessary barriers while maintaining regulatory oversight and financial stability.
Detailed rules governing participation, licensing and exemptions are expected to be published by November 2026.
Fintech companies gain new opportunities Under the proposed arrangements, eligible fintech businesses, mobile network operators and retailers could process payments more directly without relying on traditional banking intermediaries.
The central bank expects initial non-bank participation to begin around March 2027, followed by broader implementation during the year.
The changes form part of SARB’s Payments Ecosystem Modernisation programme, which aims to create a more efficient, competitive and accessible financial infrastructure.
Faster payments and lower costs The reform also supports the continued development of PayShap, South Africa’s real-time payment platform.
Greater participation could encourage new digital wallets, merchant payment services and affordable transaction solutions.
Small businesses could benefit from increased competition among payment providers, potentially reducing processing fees and improving access to electronic commerce.
Consumers in underserved communities may also gain access to more affordable digital financial products.
Cash access remains important Despite its emphasis on digital payments, the central bank recognises that cash remains essential for millions of South Africans.
SARB is therefore exploring shared ATM infrastructure and a national cash utility designed to reduce distribution and operating costs.
A pilot involving white-label ATMs is expected in January 2027, with broader deployment planned later that year.
A potential model for African markets South Africa’s initiative reflects a broader transformation across Africa, where regulators are seeking to balance financial innovation with consumer protection.
Opening national payment systems to non-bank providers could help accelerate financial inclusion while encouraging investment in domestic fintech infrastructure.
Successful implementation will depend on licensing requirements, cybersecurity standards and effective supervision of new participants.
For Africa’s rapidly expanding fintech sector, the reform represents an important step towards a more open and interconnected digital financial economy.
NewsHub Finance | Africa & Fintech | 23 October 2026
South Africa is preparing to overhaul its national payments infrastructure by allowing fintech companies, telecommunications operators and major retailers to participate directly in the country's payment system. The reform, announced by the South African Reserve Bank, could significantly increase competition, reduce transaction costs and expand access to digital financial services in one of Africa's largest economies.
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