From mid-2027, the South African Reserve Bank (SARB) intends to open the national payments system to eligible, appropriately authorised non-bank operators, including telecommunications companies, fintechs and retailers, allowing qualifying firms to connect directly to the infrastructure that clears and settles payments nationwide rather than relying on banks as intermediaries. The reform is a key pillar of SARB’s Payments Ecosystem Modernisation (PEM) Programme, which aims to modernise payment infrastructure, expand affordable and secure digital payments, increase adoption of fast-payment and reduce reliance on cash.
At a glance
- From mid-2027, the South African Reserve Bank (SARB) intends to open the national payments system to eligible, appropriately authorised non-bank operators, including telecommunications companies, fintechs and retailers.”
- Direct access could change both how providers connect to the system and the commercial arrangements through which payment services are delivered.
- With rules expected to be published by November 2026, initial non-bank participants expected around March 2027 and a wider opening from mid-2027, businesses should act now: assess eligibility, review existing bank sponsorship arrangements, test operating-model and regulatory readiness, and consider the financing and transactional opportunities the reform may create.
Why does direct participation matter?
Banks have historically occupied a central position in South Africa’s clearing and settlement infrastructure, requiring many non-bank providers to access it through sponsoring banks. Direct access could change both how providers connect to the system and the commercial arrangements through which payment services are delivered.
The regulatory question remains critical
According to Reuters, Pradeep Maharaj, executive director of SARB’s PEM Programme, said that rules governing payment activities and exemptions would be published by November 2026, with initial non-bank participants expected to go live around March 2027 following licensing, testing and systems integration, ahead of a wider mid-2027 launch. This is a reported timetable, not a guarantee that every prospective participant will qualify or be ready in time.
Broader access will not mean an unregulated market. Eligibility criteria, permitted activities, authorisation, operational standards and risk management will remain fundamental, and the reform will operate within the existing national payment system framework overseen by SARB.
What could this mean for non-banks?
Fintechs may be among the clearest beneficiaries. Qualifying fintechs could gain greater control over product design, integrations, pricing and merchant relationships, but may assume greater governance, technology, security and compliance responsibilities that were previously carried, at least in part, by their sponsoring banks.
Retailers and telecommunications companies may similarly integrate payments more closely into existing loyalty, wallet and digital-service ecosystems, subject to the scope of their authorisation and activities.
Banks, competition and inclusion
Banks will remain important but may compete with technology led providers in some areas, while continuing to offer sponsorship, settlement, safeguarding and related services in others, depending on the final framework.
Competitive advantage is likely to depend increasingly on efficient, secure and compliant customer experiences. SARB aims to reduce cash reliance and expand affordable digital payments. As part of the wider modernisation effort, SARB has also proposed a central bank-owned national cash utility and “white-label” ATMs operated as shared infrastructure, with a white-label ATM pilot reportedly due to launch in January 2027. These are anticipated outcomes, not guarantees: success will depend on services being accessible, affordable, reliable and trusted.
Key takeaways
South Africa’s reform could shift the market towards direct participation by appropriately authorised non-banks. With rules expected to be published by November 2026, initial participants anticipated around March 2027 and a wider opening from mid-2027, businesses should act now: assess eligibility, review existing bank sponsorship arrangements, test operating-model and regulatory readiness, and consider the financing and transactional opportunities the reform may create.
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Read the original publication at Cliffe Dekker Hofmeyr
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