South Africa will allow non-bank businesses, including telecoms companies, fintechs, and retailers, to connect directly to its national payments infrastructure from mid-2027, Reuters reported, citing a central bank official.
The change will end banks’ longstanding control of payments processing. Non-bank firms will no longer need to use banks as intermediaries to access the system that clears and settles transactions nationally.
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The South African Reserve Bank (SARB) expects the measure to increase competition, reduce costs, widen access to digital financial services, and support innovation, the report said.
SARB’s Payments Ecosystem Modernisation (PEM) programme executive director Pradeep Maharaj said rules on payment activities and exemptions will be published by November.
Non-bank operators are expected to begin operating around March 2027 after obtaining licences. This period will allow for system testing and integration before the mid-year launch.
The policy forms part of the PEM programme, which aims to reduce the country’s dependence on cash and expand the use of affordable digital payment services.
The SARB also plans to update payments infrastructure, increase the use of fast-payment service PayShap, and strengthen security and digital identity verification.
Maharaj said the changes should lower transaction costs for small businesses and consumers. They are also intended to give unbanked and underserved people greater access to digital payments.
The central bank has separately proposed a national cash utility, to be owned by the SARB, to handle cash distribution and processing.
It also plans to introduce “white-label” ATMs, which would operate as shared infrastructure rather than being managed individually by banks.
The proposals aim to reduce cash-handling costs and maintain access to cash, particularly in rural and underserved areas.
Maharaj said the SARB expects to move its cash centres into the new utility in 2027. The utility would then acquire industry-owned cash centres by the end of next year. A pilot for white-label ATMs is due to begin in January.
The first machines are expected to be deployed nationwide by the end of next year.
