How upcoming payments regulation changes will impact companies and consumers

Secure, inclusive payments are critical to South Africans and the local economy, as they open us up for business with the rest of the world. The first half of the year has seen significant momentum in the global and domestic payments environment, with a huge amount of activity and change underway in the payments space.

Mpho Mofokeng, Treasury and Trade Solutions – Transact Head for RMB, says, “The payments landscape is evolving rapidly, and our goal as RMB is to work alongside our clients and fellow industry participants to define the future of modernised payment systems.”

The meaningful shift in payments is being driven by evolving customer needs, a changing competitive and regulatory landscape, as well as innovation in technology. There is increasing impetus to enable non-banks to participate and compete more directly in payments.

Domestically, South Africa has made considerable strides toward an interoperable, inclusive, and innovative payments ecosystem. However, it has become increasingly evident that to meet evolving client payments needs, close collaboration on adoption, client participation, and true partnership will become a necessity as the industry continues to evolve.

Ravi Shunmugam, FNB EFT Product House CEO, says, “Changes in regulation alone will likely fail to shift the needle, and no single stakeholder group can create an effective, inclusive, and innovative payments ecosystem.  The continued evolution in thinking, which favours the reliance on true partnerships between traditional players, and emerging players is key to shaping the future of payments in South Africa and realising the intended benefits initially set out in the SARB’s Vision 2025 for the National Payment System (NPS).”

The South African Reserve Bank’s (SARB) National Payment System Department (NPSD) published Vision 2025 in 2018, which outlined nine goals designed to foster financial inclusivity, a transparent regulatory and governance framework, digitisation, interoperability, and flexibility. Creating an inclusive ecosystem was noted as a primary metric for successful payments modernisation in South Africa. It is therefore paramount that non-banks are enabled to participate in the payments ecosystem.  Currently, non-banks require sponsorship from banks to participate in payment processing. Therefore, to facilitate the direct participation of non-banks in the payments system, changes in regulations and policies are required in addition to changes in system capabilities.

To further drive the objectives set out in Vision 2025, the SARB has commenced the work to redesign its licencing framework and participation rules to enable greater access and participation in the national payments system. The NPS Bill intends to expand direct participation of non-banks in clearing and settlement without the need for bank sponsorship – removing barriers to entry and promoting participation in modern payment systems such as PayShap. As of March 2025, the NPS Bill is being prepared for public comment, and both banks and non-banks have been working closely with the regulator to ensure regulation that enhances competition while protecting clients by not introducing risk and instability to the payments network.

Tamara D’Onofrio, Treasury and Trade Solutions – Client Group Head says, “RMB understands the importance of bringing clients along on this journey, keeping them informed on how this impacts their businesses. We are deeply invested in the co-creation of value with our clients and our partners and are committed to taking meaningful steps to engage with them as projects mature sufficiently and opportunities present themselves.”

The shift in the payments landscape toward greater inclusivity and global compliance is welcomed. RMB and FNB  continue to work closely with clients and  collaborate with industry peers to navigate the future of payments in the country together.