South Africa will allow retailers, telecommunications companies and financial technology firms to access its national payments system directly from mid-2027, ending banks’ traditional dominance over payment processing.
The reform is part of the South African Reserve Bank’s Payments Ecosystem Modernisation programme. It will enable eligible non-bank providers to connect to infrastructure used to clear and settle payments nationwide, rather than relying on banks as intermediaries.
The central bank expects the change to increase competition, reduce transaction costs and encourage innovation in financial services. Retailers and fintech companies could develop payment products tailored to their customers, while consumers and smaller businesses may gain access to more affordable digital services.
Regulatory rules and licensing details are expected to be published by November 2026. The first non-bank participants could begin operating in March 2027, following testing and systems integration, ahead of a broader rollout around mid-year.
The reform comes as mobile-money providers and fintech companies challenge conventional banking services. Direct access to payment infrastructure could allow these businesses to compete more effectively, although participation will remain subject to regulatory requirements.
The reserve bank is also planning changes to South Africa’s wider payment infrastructure. These include advancing fast-payment services such as PayShap and improving digital identity verification and payment security.
Separately, the central bank has proposed a national cash utility to lower cash-handling costs. Shared automated teller machines are also planned, with a pilot scheduled for January 2027 and a nationwide rollout targeted by the end of that year.
The measures aim to modernise payments while maintaining access to cash, particularly in underserved communities.
