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The South African Reserve Bank (SARB) has taken a landmark step in transforming the country’s financial sector by opening its National Payments System (NPS) to fintech companies. For the first time, non-bank players such as mobile money operators and digital wallet providers will be able to directly participate in the payments infrastructure previously restricted to banks.
This reform is part of SARB’s Payments Ecosystem Modernisation (PEM) initiative, which seeks to enhance the efficiency, speed, and security of South Africa’s payment landscape. The NPS plays a central role in the economy as the backbone of all money transfers—including retail transactions, bill payments, and remittances. Until now, banks held exclusive access, limiting innovation and competition in the space.
By extending participation to fintechs, SARB is fostering financial inclusion and competition while addressing long-standing barriers faced by underserved populations. Fintechs are expected to introduce affordable, innovative payment solutions that can reach unbanked and rural communities, significantly expanding access to digital financial services.
However, with greater access comes the need for robust oversight. To safeguard consumers and preserve the integrity of the payments system, SARB has issued a Draft Directive and Draft Exemption Notice outlining the regulatory requirements for fintech participation. These include governance standards, capital adequacy rules, and stringent measures for data protection, fraud prevention, and anti-money laundering (AML) compliance. Importantly, the framework adopts a proportional approach, tailoring obligations to a firm’s size and risk exposure to ensure smaller fintechs are not disproportionately burdened.
Under the Draft Exemption Notice, fintechs will be permitted to undertake a range of payment activities—such as issuing e-wallets, enabling instant payments, and facilitating clearing services—without being subjected to the same regulations as traditional banks. This balanced approach encourages innovation while maintaining consumer trust and systemic resilience.
The opening of the NPS marks a pivotal moment for South Africa’s financial sector, setting the stage for a more inclusive and competitive payments ecosystem. With fintech companies now able to contribute directly, the system is poised to deliver safer, faster, and more accessible financial services nationwide.
This strategic move by SARB positions South Africa as a regional leader in modernizing payments infrastructure—strengthening financial inclusion, fostering innovation, and preparing the economy for a digital-first future.
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