South Africa to Open Payment Systems to Non-Banks

New authorisation rules will allow fintech firms to access national payment infrastructure directly.

Updated on Oct. 26, 2026 in Financial Services

Isometric editorial illustration of copper-colored conductive lattice structures, representing a modernized and accessible financial clearing system. — The South African Reserve Bank plans to allow non-bank financial institutions direct access to national payment infrastructure to boost competition and lower fees. AI Illustration. Upload story photo >

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The South African Reserve Bank intends to introduce a framework enabling non-bank financial institutions to process payments and access clearing systems. This reform aims to increase competition in the financial sector and reduce reliance on traditional bank partnerships.

Why it matters

By removing the need for sponsor banks, the central bank seeks to lower merchant and consumer fees while allowing fintechs to retain interest revenue. This shift could significantly alter the landscape for payment service providers currently operating under restrictive banking partnerships.

Proposed initial capital requirements for non-bank payment companies range from R3 million to R8 million. These figures ground the new authorisation tier intended to bring payment processing in-house for firms like Lesaka Technologies.

The players

South African Reserve Bank

The central bank of the nation responsible for monetary policy and the oversight of the country's clearing and settlement systems.

Lesaka Technologies

A financial technology company that is expanding its capabilities through the acquisition of Bank Zero to manage payment systems in-house.

Shoprite

A major South African retailer that processes significant volumes of third-party payments and operates a large Money Market Account user base.

African Bank

A financial institution that provides banking services for retail payment accounts and has seen notable growth in non-interest income.

The details

The proposed reforms will permit approved non-banks to issue electronic money and handle payments directly. Current market players like Ozow currently charge merchants 1.5% for specific services, while entities like Shoprite manage millions of user accounts through partner bank arrangements.

September 2025: African Bank reported non-interest income growth of 39%.
June 2025: Lesaka Technologies announced the planned acquisition of Bank Zero.
June 2026: Shoprite reported 4.3 million users for its Money Market Account.
20 October 2026: The South African Reserve Bank governor announced the new framework plans.
November 2026: Scheduled publication of the new authorisation framework.

Market Landscape

This move towards decentralised payment access challenges the long-standing dominance of traditional banking institutions in clearing and settlement processes. It positions non-bank fintechs to capture greater market share by reducing operational costs associated with sponsor bank arrangements.

Consumers may benefit from lower transaction fees as fintech companies reduce their reliance on intermediary banks. Enhanced competition in the payment space could also lead to more efficient digital money services for everyday shoppers.

The takeaway

The move signifies a major shift toward a more competitive fintech ecosystem that could reduce overhead costs for small merchants. Stakeholders should watch for the official framework release in late November to understand the specific compliance requirements for new market entrants.