South Africa plans to let regulated non-bank companies connect directly to its national payment infrastructure from 2027, opening a system long centered on banks to fintech firms, telecom operators and retailers. Pradeep Maharaj, executive director of the South African Reserve Bank’s Payments Ecosystem Modernisation programme, said rules for payment activities and exemptions are expected by November. Reuters reported that licensed participants could begin going live around March 2027, ahead of a broader mid-year launch. The plan remains subject to licensing, testing and systems integration.

Direct access would change the intermediary model

Under the current framework described by the Reserve Bank, only banks may participate in the settlement system. Third-party payment providers generally register through banks, while payment participants must meet authorization and operating requirements. The proposed overhaul would allow qualifying non-bank providers to connect more directly to national clearing and settlement infrastructure instead of relying on a bank as an intermediary. That could alter who can provide payment services, but it does not remove the Reserve Bank’s oversight or the need to satisfy regulatory and technical standards.

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Rules and licensing come before launch

The timetable has several stages. Maharaj said the activity rules and exemptions should be published by November. Applicants would then need licensing, followed by testing and integration work. Reuters said the first non-bank participants are expected to go live around March 2027, with a wider launch targeted for the middle of the year. Those dates are plans rather than guaranteed activation points, and the Reserve Bank has not yet named approved firms or published a final list of eligible services.

Lower costs and wider access are the policy goals

The Reserve Bank says its modernisation programme is intended to increase competition, reduce transaction costs and expand access to digital financial services. Direct participation could give payment-focused firms more control over how they route and settle transactions, potentially reducing some dependence on bank partners. For small businesses and consumers, the intended benefit is cheaper and more accessible electronic payments. Whether those savings reach end users will depend on final rules, pricing, interoperability and how many providers obtain approval.

Fast payments grow alongside cash access

The reform sits within a wider effort that includes greater use of PayShap, stronger security and digital identity checks. Local outlet EWN reported that South Africa records roughly one fast-payment transaction per person each month, compared with about fifteen in Brazil and India, and that cash still accounts for around 56% of consumer transactions. The Reserve Bank therefore says digitisation will reduce reliance on cash rather than eliminate it. Reuters also reported plans for a January pilot of shared white-label ATMs and a national cash utility.

What remains unresolved

Several important details are still pending. The final licensing criteria, capital or safeguarding requirements, access fees and technical obligations have not been published in the reviewed material. It is also unclear which payment activities will qualify for exemptions and how responsibilities will be divided when a non-bank provider connects directly to shared infrastructure. The distinction matters because faster market entry must be balanced with settlement finality, operational resilience, fraud controls and consumer protection.

The October announcement marks a concrete direction for South Africa’s payments market, not a completed opening. The next evidence will be the promised rules, named licensees and successful technical testing. If those steps proceed on schedule, the change could give retailers, telecom firms and fintech companies a more direct role in national payments while leaving the Reserve Bank responsible for system stability and supervision.

Sources

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