South Africa’s financial ecosystem is entering a significant new era as the South African Reserve Bank (SARB) has announced that non-bank fintechs will, for the first time, be allowed direct access to the National Payment System (NPS). Until now, participation in the NPS—one of the most critical backbones of the country’s financial infrastructure—was restricted to traditional banks.

The move forms part of SARB’s Payments Ecosystem Modernisation (PEM) framework and is closely aligned with the central bank’s Vision 2025 strategy, which seeks to foster a more inclusive, innovative, and resilient payments landscape.

The NPS underpins everything from clearing and settlement processes to the secure exchange of value between payers and beneficiaries. Opening this infrastructure to fintechs—including mobile money operators, wallet providers, and other non-bank players—represents a major shift in South Africa’s payments policy, bringing the system closer in line with global best practices.

At the same time, SARB has underlined the importance of security and stability. The central bank has introduced a set of stringent safeguards covering system integrity, consumer protection, and regulatory compliance to ensure that expanded participation does not compromise the reliability of the financial system.

Recognising that fintechs differ from banks in both size and risk profile, SARB has adopted a proportionality principle in its regulatory approach. This means fintechs will face requirements appropriate to their operations, rather than being subjected to the full compliance burden designed for banks.

The Draft Directive, released in early 2025, spells out the specific obligations fintechs must meet. These include:

• Governance and capital adequacy requirements.
  
• Segregation of client funds to prevent misuse.
  
• “Fit-and-proper” criteria for directors and key personnel.
  
• Clear and informed client consent protocols.
  
• Robust anti-money laundering (AML), cybersecurity, and reporting mechanisms.
  

The directive serves as interim legislation, paving the way for broader reforms under the forthcoming National Payment System Act.

Alongside this, SARB has also issued a Draft Exemption Notice under the Banks Act, clarifying which payment-related activities—such as e-wallet issuance, instant payments, third-party payment services, and clearing/settlement—may be conducted by fintechs without requiring them to register as banks

The announcement has been welcomed by many in the fintech sector, who view it as a long-overdue step toward greater financial inclusion. South Africa, despite its highly developed banking industry, still has large pockets of underserved and unbanked communities. Opening the NPS to non-banks could accelerate innovation in low-cost, digital-first financial services.

This shift also places South Africa among a growing number of jurisdictions—such as the EU, UK, and parts of Asia—that are modernising payment system access rules to support fintech participation while maintaining systemic safeguards.

Ultimately, SARB’s reforms seek to balance two priorities: opening the door for innovation and competition while safeguarding the stability of South Africa’s financial system. The proportionality principle is expected to encourage fintech-led solutions in payments, remittances, and digital wallets—services with strong potential to extend access to communities historically excluded from the banking sector.

As South Africa moves toward full legislative reform of its payments regime, the new framework signals a decisive step in reshaping the country’s financial future.

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