SOUTH AFRICA: SARB Seeks to Open Payments System to Non-Banks

The South African Reserve Bank (SARB) has announced plans to broaden participation in the national payments system (NPS) by allowing non-bank financial institutions to gain direct access. This move marks a significant policy shift aimed at fostering competition, innovation, and financial inclusion within South Africa’s rapidly evolving payments landscape.

Currently, only licensed banks enjoy direct access to the NPS, while fintechs, mobile money operators, and other payment providers must partner with banks to clear and settle transactions. The proposed reforms would lower this barrier, enabling a wider range of players to participate directly—subject to strict regulatory and risk management safeguards.

SARB Governor Lesetja Kganyago highlighted that the central bank’s priority is to balance innovation with stability. “Opening access to non-banks could accelerate digital payments adoption, expand services to underserved communities, and reduce transaction costs, but it must be implemented in a way that maintains systemic safety and integrity,” he said.

Industry experts see the move as aligning South Africa with global trends where regulators are enabling fintech-led innovation in payments, while also tightening oversight. Neighboring markets such as Nigeria and Kenya have already demonstrated the transformative potential of broader participation by non-banks in payments.

The SARB is expected to publish detailed guidelines and a phased implementation plan in the coming months. If successful, the reform could reshape South Africa’s financial services sector by increasing competition, driving down costs, and promoting financial access for millions of consumers and small businesses.