South African Reserve Bank Plans Wider Payments Access for Fintechs and Non-Banks

South Africa’s central bank is preparing reforms that would allow appropriately authorised non-bank providers to participate more directly in the national payments system, potentially changing how fintech companies, banks and merchants deliver everyday financial services. The initiative forms part of a broader plan to improve payment speed, affordability and interoperability.

A new route into payments

In a 20 October address to the South African Reserve Bank Payments Conference, Governor Lesetja Kganyago outlined four priorities: opening the system to non-banks, expanding PayShap, creating interoperable QR-code payments and developing reusable digital credentials. The Reserve Bank aims to publish a new authorisation framework by the end of November 2026.

Why the rules matter

Payment companies currently depend on banks for access to parts of the national payments system. The proposed approach would distinguish activities involving payments from traditional banking activities, such as taking deposits and using them to fund long-term lending. That distinction could permit proportionate regulation without removing requirements for customer-fund protection, operational resilience, governance and reporting.

Competition without weakening safeguards

The Reserve Bank argues that regulation should reflect the risks of an activity rather than automatically require every provider to operate under the same institutional model. Opening infrastructure may enable specialist providers to compete on service design and pricing. But participation will remain conditional on authorisation and safeguards. The proposal is not an announcement that all fintech firms can already access the system directly.

PayShap’s growth and limits

Kganyago said PayShap has processed more than one billion transactions with a combined value exceeding R1 trillion since its launch in 2023. Even so, the Governor argued that the platform has not yet achieved the widespread use of cash or established payment methods. He identified inconsistent customer experiences, pricing, limited awareness and insufficient merchant acceptance as obstacles to broader adoption.

One QR code for different providers

The proposed QR+ standard aims to let merchants display an interoperable code that customers can scan using their preferred participating service. For small retailers, such a model could reduce the need for costly equipment and make digital acceptance more practical. A pilot is expected in the first quarter of 2027; the technical and commercial results remain to be seen.

Digital identity and privacy

The Reserve Bank is also developing reusable, verifiable credentials for payments. Such credentials could reduce repeated onboarding requirements and help customers use financial services across providers. The Governor stressed that people should retain control over their information, with safeguards governing consent and data use. Transaction histories may help some businesses demonstrate economic activity, but they should not automatically become credit scores or conditions for basic access.

Regional payments

The programme extends beyond South Africa. The Reserve Bank plans to move qualifying lower-value regional payments below R100,000 to the Transactions Cleared on an Immediate Basis system by the end of April 2027. By October 2027 it aims to establish a hub-and-spoke pilot across eight countries. These are implementation targets, not completed cross-border integrations.

What success would look like

For consumers and businesses, success would mean reliable low-cost transfers, more places to pay digitally and fewer unnecessary barriers to entry for regulated providers. For the region, it could mean more efficient retail trade and remittances. The central bank’s challenge is to preserve trust and financial stability while enabling competition. The coming authorisation framework and pilots will provide the first meaningful tests of delivery.